YEREVAN, August 22. /ARКА/. The government of Armenia approved today a draft decision to introduce a scheme for subsidizing mortgage loans of 500 servicemen annually.

"According to the decision, each year, 500 military personnel can become beneficiaries of the program, which provides for mortgage loans of up to 28.5 million drams. Ten percent of this amount is subsidized by the government as down payment," Armenian Defense Minister David Tonoyan said at the Cabinet meeting .

He said in case of buying an apartment from the primary real estate market or building a new house, the loan rate will be 7% per annum, of which 3% is subsidized by the government, and the remaining 4% is repaid from the borrower's income tax.

In case of buying an apartment or house in the secondary real estate market, the maximum interest rate established by the National Mortgage Company cannot exceed the refinancing rate by more than 2%. The state also subsidizes a 3% mortgage rate, and the rest is paid by the borrower.
According to the minister, it is necessary either to purchase insurance in the amount of 20% of the contract, or pledge other real estate.

“The selection of beneficiaries will be carried out by drawing lots. Servicemen registered as in need of better housing conditions will have priority and will become beneficiaries of the program without participating in the draw,” Tonoyan said.

Chief of Police Valery Osipyan commented that other power structures also need similar programs. In response, Deputy Prime Minister Mher Grigoryan noted that the main problem in implementing similar programs for the rest of the power structures is the lack of budget revenue sources for financing prepayments.

The Chairman of the Committee for Urban Development Vahagn Vermishyan noted that there is a problem with the primary housing market in the regions, therefore, projects have already been prepared for the construction of 30 multi-storey buildings in 27 regional cities, apartments in which will be sold at affordable prices. ($ 1 - 475.94 drams). --0--