Mortgage lending program with lowest ever interest rates to be launched in Armenia soon - premier

16.07.2018 19:19
Mortgage lending program with lowest ever interest rates to be launched in Armenia soon - premier

YEREVAN, July 16. /ARKA/. Armenian Prime Minister Nikol Pashinyan, speaking live for Facebook users on Sunday, said a mortgage lending program with the lowest ever interest rates will be launched in Armenia soon.

He agreed with citizens that interest rates on mortgage loans and other purpose loans are extremely high in Armenia.

In his words, the government has also embarked on regulation of this problem, and officials have already met with bankers.

“Interest rates have already slid slightly,” Pashinyan said. “Now we want to implement a mortgage program of social purpose. Under this program, we will be able to drive the mortgage interest rate to the lowest ever level.”

Pashinyan said that necessary measures are being taken now to make mortgage loans more affordable to ordinary citizens. In particular, the prepayment amount may be reduced and repayment terms extended.

The premier remembered that the government-initiated legislative changes were made recently in Armenia. They allow banks to forgive the fines and penalties imposed on borrowers for repayment delays.

He expressed hope that interest rates on loans will continue their downward motion.

Along with that, Pashinyan pointed out the problem related to credit organizations and numerous cases of fraud in this area adding that this problem is already taken up.

He also said that there are no similar problems in the banking sector or they are not so noticeable.

The prime minister said that interest rates depend on the money supply in a country – if money supply is scant in the country, then interest rates are high, and if there is much money, interest rates are low.

“We have some ideas in this context,” he said adding that improvement of business environment in the country may attract foreign investments here.

According to the central bank’s reports, interest rates on dram loans went 1.48 percentage points down to 12.26%.

The average interest rate on mortgage loans stood at 11.3% in late May.

In 2010, ‘Affordable Housing for Young Families’ program was launched in Armenia. Subsidies under the program were equal to 2% in Yerevan and 4% in the country’s provinces.

Mortgage lending programs ‘Affordable Housing for Young Specialists’ and ‘Affordable Housing for Servicemen’ are being implemented in Armenia as well. -0---


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