YEREVAN, April 19, /ARKA/. Russia-owned Bank VTB Armenia has joined a new program of the Armenian government designed to spur mortgage lending in the country and help hundreds of young families buy apartments.

A press release by the bank said VTB Bank Armenia began offering mortgage loans to young families wishing to buy homes. It said loans are provided in Armenian national currency Dram at 9.5%-10% interest rate, 2% of it is subsidized by the government. The maximum repayable period is 20 years, the maximum amount of a loan is 16 million Drams and the down payment is 30%.

‘We are happy to join the initiative of the Armenian government and support young families living in Armenia to buy apartments. VTB Bank Armenia will join all such projects because we are sure that this way we are making our contribution to development of Armenia’s economy and improvement of social conditions of its people,’ the bank’s CEO, Valery Ovsyanikov was quoted as saying.

The program was approved by the government in late January. According to it, the Central Bank of Armenia provides 3 billion Drams ($8 million) to finance the first phase of the program which is supposed to benefit up to 300 young couples lacking adequate housing. Ppublic funds will also be used for “subsidizing” housing loans borrowed from commercial banks. -0-