Mortgage portfolio of Armenian banks to reach AMD 110-120 billion

PanARMENIAN.Net - Chairman of the Central bank of Armenian Arthur Javadyan said that currently the amount of mortgage credits issued by Armenian commercial banks totals around AMD83 billions.

“According to our and international experts’ estimates, we have the possibility to increase the mortgage portfolio up to AMD 110-120 billion this year,” Mr. Javadyan told a press conference in Yerevan on April 19, after the signing of a 20mln euro credit agreement between the RA Central Bank and German KfW bank on the Development of Sustainable Market of Housing Finance program.

He added that AMD 4.3 billion was provided to commercial banks through National Mortgage Company UCO. “We have other AMD 13 billion to be placed within 1.5-2 years,” he said.

Besides, according to Mr. Javadyan, AMD 3 billion is supposed to be placed in 2010 under Apartment to Young Families program, which has been launched recently.

“We still face the necessity of receiving additional funds,” the Armenian Central Bank Chairman said, adding that the share of inoperative credits makes 0.8% in the total credit portfolio of Armenian banks.