Yerevan /Mediamax/. Armenian CB reached tentative agreement with German KfW bank on attracting additional funding at the volume of 20mln euro for developing mortgage market and 15-20mln euro for developing regenerating energy.

Mediamax reports that Chairman of Armenian Central Bank Artur Javadyan said this in Yeghegnadzor on May 15. It is expected that 20mln euro for development of mortgage market will be received by the end of fall, this year.

Answering the question of Mediamax on the terms mortgage crediting will be realized by after receiving additional funding, Artur Javadyan stated that non-market mechanisms will not be used in the mortgage market, but continuation of expansive monetary-credit policy of CB will be reflected in banking interest rates.

“It is difficult today to say what the interest rates for mortgage crediting will be, but there is no doubt that they will be lower than the ones today, and the minimal terms will exceed 10 years”, Artur Javadyan states, adding that there are talks held with KfW on increasing the maximum sum of the issued mortgage crediting, which at present makes 12mln AMD.

CB Head also informed on the new details of the Mortgage Fund’s activity, which will be registered by the end of the month.

“The new mortgage company will not deal with provision of credits, but will repurchase or take under security the mortgage credits of banks, which meet the criteria established by the company”, Artur Javadyan stated, adding that this way, the banks, providing mortgage credits by the given criteria, may be sure that the mortgage company will buy from them those credits, and, in fact, refinancing will take place.

CB Head informed that the authorized capital stock of the mortgage company will make 5bln AMD. “Besides, there is arrangement on attracting 5bln AMD into the Fund from private investors, 15-20bln AMD from the government, and there are also talks held on attracting funding  from the International Finance Corporation and other international donors”, Artur Javadyan stated.