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MORTGAGE LOAN INTEREST RATES VERY HIGH IN ARMENIA - OPPOSITION MP AGREES WITH KOCHARYAN
11:40 ~U 15.01.14
In an interview with Tert.am, Artsvik Minasyan, an opposition MP
from the Armenian Revolutionary Federation Dashnaksutyun, expressed
his agreement with second President Robert Kocharyan's remarks on
Armenia's mortgage market (which he had described as very risky).
Minasyan, an economist by profession, said the market in Armenia
offers very high interest rates not affordable to the population.
He first of all stressed the importance of giving a clear definitition
to the concept. Minasyan said he finds the real mortgage interest rate
to be actually higher from the figure indicated on the Central Bank's
website (53 billion, instead of the 43 billion). According to him,
the subsequent increase to 141 billion does not suggest at all that
Armenia has an affordable system or a developed market of mortgage
loans. Minasyan believes the real increase should have been twice or
three times higher. He said a comparison with other countries clearly
demonstrates the unaffordability of the mortgage loan interest rates
on Armenia's market.
"The nominal 12 percent increase cannot be considered an interest rate
for a mortgage loan because it does not cover such terms as insurance
policies, property assessment payments and the broker fees which an
individual taking a mortgage loan is obliged to pay. In other words,
anyone applying for a mortgage loan takes it at an interest rate
higher from the established 12 percent limit, as a matter of fact. And
the violation here occurred in the frameworks of the apartment fund
assistance project implemented by the Government. But our judgments
should be based on the amount of the interest ratewhich remains
within the boundaries of 17-18 percent. Such an interest rate will
badly affect the mortgage loan system," he explained.
http://www.tert.am/en/news/2014/01/15/minasyana/
11:40 ~U 15.01.14
In an interview with Tert.am, Artsvik Minasyan, an opposition MP
from the Armenian Revolutionary Federation Dashnaksutyun, expressed
his agreement with second President Robert Kocharyan's remarks on
Armenia's mortgage market (which he had described as very risky).
Minasyan, an economist by profession, said the market in Armenia
offers very high interest rates not affordable to the population.
He first of all stressed the importance of giving a clear definitition
to the concept. Minasyan said he finds the real mortgage interest rate
to be actually higher from the figure indicated on the Central Bank's
website (53 billion, instead of the 43 billion). According to him,
the subsequent increase to 141 billion does not suggest at all that
Armenia has an affordable system or a developed market of mortgage
loans. Minasyan believes the real increase should have been twice or
three times higher. He said a comparison with other countries clearly
demonstrates the unaffordability of the mortgage loan interest rates
on Armenia's market.
"The nominal 12 percent increase cannot be considered an interest rate
for a mortgage loan because it does not cover such terms as insurance
policies, property assessment payments and the broker fees which an
individual taking a mortgage loan is obliged to pay. In other words,
anyone applying for a mortgage loan takes it at an interest rate
higher from the established 12 percent limit, as a matter of fact. And
the violation here occurred in the frameworks of the apartment fund
assistance project implemented by the Government. But our judgments
should be based on the amount of the interest ratewhich remains
within the boundaries of 17-18 percent. Such an interest rate will
badly affect the mortgage loan system," he explained.
http://www.tert.am/en/news/2014/01/15/minasyana/