KfW issues 20m euros credit to CBA

PanARMENIAN.Net - The KfW German bank issued a 20m euro credit to CBA in the framework of the Development of Sustainable Market for Housing Finance program implemented by German-Armenian Fund (GAF). The agreement was signed on April 19 by CBA President Arthur Javadyan and Eva Witt, the KfW Europe Division Chief of the Private and Financial Sector Development.

The CBA President informed that the credit is allowed for 10 years, with 3 years grace period, at 3% annual interest rate, with complete use of the credit resources in the coming three years. “Partner financial organizations will provide the credit to physical persons in AMD at 12-16% market annual interest rate for apartment purchasing,” Mr. Javadyan said.

He specified that at present CBA grants credits to financial organizations at 8.25% annual interest rate, with its possible future revision depending on further developments in the financial market.

The KfW representative, for her part, mentioned that the program aims to stimulate the mortgage market in Armenian regions and will support medium-income and vulnerable families. “As the credit is provided from Germany’s government resources, it is mainly intended for most vulnerable strata, therefore we try not to raise the current maximum fixed at AMD 12m,” Ms. Witt added.