Yerevan, October 4 /Mediamax/. 6 Armenian banks and two credit organizations were selected for participation in the program of the German KfW bank “Stable Development of the Mortgage Market”.

Mediamax reports that the Deputy Chairman of the Central Bank of Armenia Artur Javadian stated today that “Armeconombank”, “Ararat Bank”, “Areximbank”, “Cascade Bank”, “Inecobank”, “ITB International Trade Bank” and the “First Mortgage Company” and “Washington Capital” credit organizations are involved in the program.

The cost of the program makes 12mln euro, the funds will be provided by two tranches of 6mln euro each. Within the framework of the program, the KfW will also provide a grant of 1mln euro for consultation services and 0, 5mln euro - for educational arrangements.

The banks, involved in the program, will provide mortgage credits for not less than 10 years. The sum of the credit will not exceed 12mln AMD, and the interest rates will be set taking into account the market indices.

As to September 1, 2006, the mortgage portfolio of the Armenian commercial banks made
19.5bln AMD. 3bln were provided in AMD, $40mln in dollars. The interest rates vary from 10 to 15%.

Artur Javadian noted that according to different assessments, the demand for mortgage credits in Armenia makes $150-250mln.