YEREVAN, February 20./ARKA/. Ararat Ghukasian, chairman of the Association of Armenian Banks, said today 10 Armenian commercial banks said they are ready to join a government-backed program aimed at spurring the mortgage lending in the country. The program is designed for young families and is expected to help hundreds of young families buy apartments.

Under the program the Central Bank of Armenia (CBA) will provide 3 billion Drams ($8 million) to finance the first phase of the program. An eligible family can receive a mortgage loan worth up 16 millions Drams, repayable in at least ten years.

Ararat Ghukasian said loans will be provided at 10.5% interest rate, of which 2% will be subsidized by the government. An eligible family is a family in which the total age of both parents is not above 60 and their monthly income is 300,000-350,000 Drams. The income may include also financial support of relatives and friends. Ararat Ghukasian declined to name the banks which are ready to join the program.

On February 16 the Central Bank registered a universal crediting organization Apartments to Young People that will be handling the program.

Earlier prime minister Tigran Sarkisian said young families would be able to apply for the assistance already in the first quarter of this year and if the scheme’s first phase proves a success it will be expanded to cover thousands of families. ($1 – 381.58 Drams) -0-