Eduard Oremyan: mortgage lending to become active by end of 2010

PanARMENIAN.Net - Chairman of the Association of Mortgage Market Participants Eduard Oremyan said that a growth has been recorded in the field of mortgage lending since the beginning of 2010, due to new mortgage programs of the government (National Mortgage Company UCO and Affordable Housing for Young Families), as well as population's activity at the market. "Today, financial organizations actively provide credits under mortgage programs, and the market will become more active by the end of the year," Oremyan said during the fourth annual meeting of the Association in Yerevan.

Besides, Eduard Oremyan noted that the Association is trying to reveal and remove the obstacles in the field of mortgage lending. "The required amounts of salaries hinder crediting in the country's regions, while they are basic targets of the governmental programs on mortgage lending," he said. In addition, according to him, 30% prepayment makes mortgage credits unaffordable for young families. At the same time, he noted that 10-12 credits have already been provided under Affordable Housing to Young Families program, which started in March 2010.

As for interest rates, Eduard Oremyan noted that they considerably decreased in 2009; currently they make 8.5-13% against 16-20% several years ago. "New reduction in interest rates can be expected, as the market is developing and today there is a task of long-term money" he said.