On March 2, the association of mortgage market members of Armenia (AMMMA) presented a new product in Yerevan, under which the initial payment for mortgage loan will make maximum 15% instead of previous 30%, while an insurance company will shoulder the risk of the rest 15%.

“With applying this mechanism, we try to promote development of Armenia’s mortgage market, to standardize and improve mortgage loans, as well as create prerequisites for social stability and economy’s development as a whole through solving housing problems,” CEO of the association Gevorg Bosnoyan said.

According to him, the new mortgage mechanism will allow forming a strong primary market, what in its turn will provide with the opportunity to develop a secondary market.

A working group dealing with study of possible hindrances and legislative field will be established to introduce the new mechanism.

Bosnoyan attached importance to education of specialists to deal with this type of insurance, after which the new mortgage product will be introduced in the third quarter of 2011.