Yerevan/Mediamax/. Armenian Prime Minister Tigran Sargsian spoke for revision of the prepayment, repayment terms and interest rates of mortgage credits, issued within the framework of “Affordable Dwelling for Young Families” state target program.

Mediamax reports that speaking on June 19 at the expanded session of the National Council of Youth Policy under the Prime Minister, Tigran Sargsian stated that quite strict crediting conditions have been established, which are justified only at he beginning of the program to test the elaborated methodology. The Prime Minister established that the program moves slowly and noted the necessity to revise the crediting conditions.

“We are ready to increase financing of the program and even attract international donors to its realization”, the Prime Minister stated. He also expressed opinion that for even development of the regions, it is possible to significantly facilitate crediting conditions for purchasing dwelling outside of Yerevan.

According to Tigran Sargsian, in the nearest future discussion of the issue will take place at the joint workgroup of the government and the Central Bank (CB) of Armenia.

The state program on increasing affordability of mortgage for young families was launched in March, 2010. Aiming at this, the Central Bank of the country established “Dwelling for the Youth” UCO, which refinances mortgage credits of commercial banks, issued within the framework of the program. According to “Affordable Dwelling for Young Families” program, a family, which meets the following parameters, may receive a mortgage credit.

- One of the spouses is a citizen of Armenia at the age of 18-30;
- The aggregate age of the spouses does not exceed 60 years;
- The age of each of the family members should not exceed 35;
- A single parent, whose age does not exceed 30.

Mortgage credits are issued in AMD at the annual interest rate of 9.5%-10%, 2% of which are subsidized by the government. Thus, the borrower receives a mortgage credit at the interest rate of 7.5-8%. The maximum repayment term of the credit makes 20 years, the maximum sum of the purchased dwelling makes 16mln AMD, the prepayment starts from 30% of the dwelling cost.