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RESIDENTS OF YEREVAN LOSE INTEREST IN GOVERNMENTAL PROGRAM "AFFORDABLE HOUSING FOR YOUNG FAMILIES"
arminfo
Wednesday, May 11, 19:33
The potential applicants' interest in the program "Affordable housing
for young families" has fallen, Armenian Deputy Minister of Sport
and Youth, President of Yerevan State University Graduate Union NGO
Arsen Karamyan said at today's press conference.
According to him, at the pilot stage of the program, a total of 325
families purchased flats on affordable terms, having slightly exceeded
the indicator targeted by the government. This year about 250 young
families will make use of the program on affordable housing, he said.
When touching on the shortcomings of this program, the deputy minister
said that its affordability is restricted only to the affordable terms
of mortgage crediting and neglects the problems connected with the high
value of housing being purchased by the applicants. "It is much more
effective when one program combines two components of affordability:
cheap housing on the one hand, and affordable crediting terms on the
other hand", said Karamyan.
In this context, Karamyan recalled the agreement recently signed
between the organization headed by Karamyan and the VTB Bank
(Armenia). The agreement envisages provision of mortgage loans to
Armenian scientists on more affordable terms than the market ones.
To recall, the Central Bank registered Affordable Housing for Young
Families UCO on February 16 on the bases of the state target program
of affordable housing for young families approved by the Government
on Jan 29 2010. The annual interest rate on the loans provided under
the given program was 10.5%, including the government finances 2%. The
cost of the housing cannot exceed 6 million drams and the prepayment
was 30% of total cost. The loan maturity is 10 years. The required
monthly income of a family is at least 300- 350,000 drams inclusive
of financial assistance from family and relatives. On November 11
2010 the mortgage crediting terms were dampened to some extent by
the government's decision. The rate of the government finances was
increased from 2% to 4%, and the prepayment was decreased from 30%
to 10%.
arminfo
Wednesday, May 11, 19:33
The potential applicants' interest in the program "Affordable housing
for young families" has fallen, Armenian Deputy Minister of Sport
and Youth, President of Yerevan State University Graduate Union NGO
Arsen Karamyan said at today's press conference.
According to him, at the pilot stage of the program, a total of 325
families purchased flats on affordable terms, having slightly exceeded
the indicator targeted by the government. This year about 250 young
families will make use of the program on affordable housing, he said.
When touching on the shortcomings of this program, the deputy minister
said that its affordability is restricted only to the affordable terms
of mortgage crediting and neglects the problems connected with the high
value of housing being purchased by the applicants. "It is much more
effective when one program combines two components of affordability:
cheap housing on the one hand, and affordable crediting terms on the
other hand", said Karamyan.
In this context, Karamyan recalled the agreement recently signed
between the organization headed by Karamyan and the VTB Bank
(Armenia). The agreement envisages provision of mortgage loans to
Armenian scientists on more affordable terms than the market ones.
To recall, the Central Bank registered Affordable Housing for Young
Families UCO on February 16 on the bases of the state target program
of affordable housing for young families approved by the Government
on Jan 29 2010. The annual interest rate on the loans provided under
the given program was 10.5%, including the government finances 2%. The
cost of the housing cannot exceed 6 million drams and the prepayment
was 30% of total cost. The loan maturity is 10 years. The required
monthly income of a family is at least 300- 350,000 drams inclusive
of financial assistance from family and relatives. On November 11
2010 the mortgage crediting terms were dampened to some extent by
the government's decision. The rate of the government finances was
increased from 2% to 4%, and the prepayment was decreased from 30%
to 10%.