Mortgage company - secondary mortgage market operator to be created in Yerevan

PanARMENIAN.Net - In accordance with CBA concept, mortgage company - secondary mortgage market operator will be created in Armenia in a month's period, CBA Press Service reported.

The above mentioned project drew on international experience of mortgage company creation. The company will operate as a credit organization, supporting the principle of collaboration between the government and private sector.

CBA, planning to invest AMD 5 billion, is appointed a preliminary founder of the company.



Investments in company's authorized capital can be fulfilled by RA Government, financial institutions and international investments, to enable manifold growth of capital fund by the end of 2009.

Creation of mortgage company -secondary mortgage market operator will set a foundation for further housing guarantee issues' solution. The company will form "long money" through issuance of security. This will improve mortgage lending conditions, and increase availability of mortgage credits through interest rate decrease and lengthening of maturity date.

The company will fulfill refinancing of housing guarantee social programs, CBA reported.