Yerevan, March 23 /Mediamax/. In 2006, the volume of mortgage crediting in Armenia made 25,4bln AMD.

Mediamax reports that the Chairman of the Central Bank of Armenia Tigran Sarkisian said this during the annual meeting of the Association of mortgage market participants of Armenia. According to him, it is a low sum for the development of mortgage market of the country, as in many developed countries mortgage credits make more than the half of the volume of credit investments, whereas in the Armenian banks they make only the 10%.

According to Tigran Sarkisian, the main reason for the small specific weight of mortgage crediting in Armenia is the low average salary of the population, which does not reach the point of $300, which is needed to receive a mortgage credit. Among other obstacles, the CB Chairman noted the short terms of providing mortgage credits. According to Tigran Sarkisian, the given terms should be increased up to 20 years. He also noted that the lowering of interest rates of credit provision will also assist the development of mortgage crediting in Armenia.

The CB Chairman informed that in the course of 5 years it is planned that the volume of mortgage crediting in Armenia will increase up to $1,5bln. This, according to him, will allow increasing the volume of construction in the country, which is a necessity at present. “80% of the housing resources of Armenia are in disastrous condition and that is why the development of construction is urgent”, Tigran Sarkisian stated.