KFW TO INJECT 20 MILLION EURO IN ARMENIA’S MORTGAGE LENDING
ARKA
Apr 9, 2009
YEREVAN, April 9. /ARKA/. The German development bank Kreditanstalt
fuer Wiederaufbau (KfW) plans to extend â~B¬20mln loan to Armenia by
late June to boost the country’s mortgage lending programs, Chairman
of the Central Bank of Armenia (CBA) Arthur Javadyan said Wednesday
at the Yerevan-based Novosti International Press Centre.
On August 28, 2008, the RA Government made a decision to allocate
a â~B¬6mln guarantee to CBA, as part of the agreement on mortgage
lending development KfW and CBA signed on December 28, 2007.
The German bank agreed to extend the loan to Armenia, provided that
CBA offered a similar guarantee.
According to Javadyan, there remains a surplus of â~B¬1mln on the
account of the KfW program implemented by the German-Armenian Fund.
"We are negotiating with the German development bank KfW over expanding
the sum by another â~B¬20mln or 10mln drams," the CBA chairman said,
adding the Central bank stands ready to earmark extra funds for
mortgage lending if commercial banks are interested in the program.
Mortgage loans in Armenia currently total 84mln drams, Javadyan said,
pointing out the local banks’ conservative attitude to mortgage
lending and their refusal to reinvest funds for new mortgage loans.
In Q4 2008, Armenia’s banks extended mortgage loans worth 81.1bln
drams, with mortgage lending co mprising 13.01% of the banks’ credit
portfolio. ($1-372.65 drams)
From: Emil Lazarian | Ararat NewsPress
