National Mortgage Company refinances some 11,000 loans over one decade

16.07.2019 19:16
National Mortgage Company refinances some 11,000 loans over one decade

YEREVAN, July 16. /ARKA/. Armenia’s National Mortgage Company Refinancing Credit Organization has refinanced some 11,000 loans over one decade of its presence at Armenia's market, of which 7,400 have been provided for acquisition of housing, and the remaining loans for repair and construction of detached houses, National Mortgage Company RCO Executive Director Edmond Vardumyan said in an exclusive interview with ARKA News Agency.
"In total, the loans amounting to 94 billion have been refinanced," he said.

In his words, it has become easier to obtain housing under the National Mortgage Company's program thanks to improvement of mortgage lending terms.

An average interest rate at the moment of establishment of the company ranged between 14 and 17 percent, while now it ranges between 8.25 and 11 percent.

Besides, the loan repayment period is extended to 20 years from the previous 12, and this reduces the size of monthly payment. The maximum sum of the loan was increased as well – from AMD 20 million to AMD 35 million.

Vardumyan said that the company’s only shareholder the Central Bank of Armenia and also international organizations are its financing sources.

The National Mortgage Company also issues bonds. Now the issued bonds total AMD 6.5 billion.

“The aim of the emissions is to receive free resources from the market and use them for development of the mortgage market and implementation of our programs,” Vardumyan said.

Speaking about the results of the company’s activity for the last six months, he said that it accounted for a 3.5% growth (AMD 175 million). In June 2019, the company accounted for a 50% year-on-year growth.

The National Mortgage Company Refinancing Credit Organization is a refinancing credit organization, which was registered by the Central Bank of Armenia on October 19, 2011.
Its sole shareholder and founder is the Central Bank of Armenia. -0---


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