Yerevan /Mediamax/. National Hypothec Company of Armenia concluded the first agreement on hypothec loan refinancing, thus marking the start of its activity, Chairman of the Central Bank (CB) of Armenia Artur Javadyan stated in Yerevan today.

Mediamax reports that the Executive Director of the National Hypothec Company (NHC) of Armenia Mher Yedigaryan informed that the first bank, which has received refinancing for a provided hypothec loan, was “Armbusinessbank”.

Presenting the scheme for the new structure’s activity, Artur Javadyan stated that financial organizations, which cooperate with the Company, after provision of hypothec loans, meeting NHC standards, may submit applications to the latter on refinancing the given loans, which allows financial organizations securing constant growth of their mortgage portfolio.

Financial organizations should transfer the repayments of refinanced loans to NHC, as well as pay it 9% annually for refinancing.

“After the assets of the Company are formed at the proper level, NHC will start attracting additional means from the market by means of bonds issue”, Artur Javadyan stated, adding that there are also talks held with foreign investors, who have expressed wish to participate in the authorized capital stock of the Company, as well as provide it long-term loan means at low interest rates.

Talking about loan standards, established by NHC, CB Head stated that loans at the volume of up to 20mln and issued at the term of minimum prepayment of 30% from the real estate cost will be refinanced. Artur Javadyan stated also that priority will be given to loans, issued at low interest rates.

“NHC activity will allow reducing the current market interest rates for hypothec loans for a few percentage points and prolong the loan repayment terms”, Artur Javadyan stated, adding that banks, which receive refinancing in AMD, are relieved of currency risks.

According to CB Chairman, almost all Armenian bans will be provided the right to use refinancing, and in a few months – credit organizations as well.

The founder and the only owner of NHC is the Central Bank of Armenia. The National Hypothec Company was registered on June 16 with the authorized capital stock of 5bln AMD.

Artur Javadyan reminded that by the recent decision of the government, 12bln AMD were allocated for NHC from the Russian stabilization loan.