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MORTGAGE CREDITING GROWTH RATES WILL REMAIN THIS YEAR, CBA CHAIRMAN
FORECASTS
YEREVAN, JANUARY 18, NOYAN TAPAN. In 2007, the overall crediting by
Armenian financial institutions grew by 72% compared with the 2006
index of 243 bln 413 mln 950 thousand drams, while the mortgage
crediting doubled as compared with the 2006 index of 23 bln 770 mln 50
thousand drams, the chairman of the Central Bank of Armenia (CBA)
Tigran Sargsian said at the January 18 press conference. It was stated
that the growth rates of mortgage crediting by Armenian credit
institutions were higher than those by the country's banks in 2007 as
compared with 2006.
According to T. Sargsian, the mortgage crediting growth rates will
remain in 2008 and will be several times as high as GDP growth rate.
The mortgage crediting growth rates will remain regardless of the fact
that 2008 is an election year and stagnation has been observed in the
real estate market. It was mentioned that demand for mortgage credits
currently makes 1 billion dollars in Armenia.
The Armenian representative of KfW bank (Germany) Karapet Gevorgian
said that in early 2007 mortgage credits were provided at 16-18%
interest rates for 5-7 years, whereas now such credits carry 11-14%
interest rates and are provided for 14-15 years and even 20 years (by
1-2 banks). In his words, further reduction in interest rates of
mortgage credits by 3-4% is impossible because in Armenia deposits are
attracted at average interest rate of 9-11%.
FORECASTS
YEREVAN, JANUARY 18, NOYAN TAPAN. In 2007, the overall crediting by
Armenian financial institutions grew by 72% compared with the 2006
index of 243 bln 413 mln 950 thousand drams, while the mortgage
crediting doubled as compared with the 2006 index of 23 bln 770 mln 50
thousand drams, the chairman of the Central Bank of Armenia (CBA)
Tigran Sargsian said at the January 18 press conference. It was stated
that the growth rates of mortgage crediting by Armenian credit
institutions were higher than those by the country's banks in 2007 as
compared with 2006.
According to T. Sargsian, the mortgage crediting growth rates will
remain in 2008 and will be several times as high as GDP growth rate.
The mortgage crediting growth rates will remain regardless of the fact
that 2008 is an election year and stagnation has been observed in the
real estate market. It was mentioned that demand for mortgage credits
currently makes 1 billion dollars in Armenia.
The Armenian representative of KfW bank (Germany) Karapet Gevorgian
said that in early 2007 mortgage credits were provided at 16-18%
interest rates for 5-7 years, whereas now such credits carry 11-14%
interest rates and are provided for 14-15 years and even 20 years (by
1-2 banks). In his words, further reduction in interest rates of
mortgage credits by 3-4% is impossible because in Armenia deposits are
attracted at average interest rate of 9-11%.