Friday, August 27 2010 11:17
Armenia expecting a 20 million EUR loan from German KfW Bank till late September 2010
ArmInfo. The Central Bank (CB) of Armenia expects a 20 million EUR loan from the German KfW Bank till late September 2010 for development of the mortgage market, Arthur Javadyan, CB Chairman, said in the government on Thursday.
"All the necessary arrangements have been made and we hope to receive the funds in late September," he said. Javadyan recalled that it is already the second stage of the project Development of a Sustainable market for Housing Finance in Armenia and the lending terms will not undergo any changes. The Gernam KfW Bank and the Armenian CB signed the agreement for additional financing in the amount of 20 million EUR for further implementation of the project Development of a Sustainable market for Housing Finance in Armenia (GAF-HF-KfW) on April 19 in Yerevan. On August 25 the Government adopted a decision to provide 20 million EUR guarantees to the Central Bank for implementation of the second stage of the given project. Finance Minister Tigran Davtyan presented the draft decision of the Govenrment and said that the second stage will commence as soon as the state guarantees are provided.
The first stage of the project Development of a Sustainable market for Housing Finance in Armenia (GAF- HF-KfW) was launched in Armenia in 2006. As part of the program, KfW provided two equal tranches for a total of 12 million EUR and a grant of 1.5 million EUR for advisory services on 2007-2008. At present 9 commercial banks and 2 universal credit organizations are involved in the project: Armbusinessbank, Armeconombank, Anelik Bank, ARARATBANK, Areximbank, Ardshininvestbank, Byblos Armenia Bank, Cascade Bank, First Mortgage UCO, INECOBANK, and Washington Capital UCO. Under the project, maturity of a mortgage loan is at least 10 years and the prepayment is 30% of the cost of the housing and the maximum size of a loan is 12 million dram.
Expert: Electricity tariff containment in Armenia is only temporary
Political Scientist: Armenia`s withdrawal from Eurasian Economic Union (EAEU) to result in its dependence on Azerbaijani and Turkish markets
Artur Avetisyan: All discussions regarding the choice of a future NPP model will remain mere talk until there is a vision for strategic development
ATI.SU: Demand for international cargo transportation 30% up in Armenia
Civil Contract nominates Armen Ktoyan for Central Bank Board Member position
Armenia, France considering prospects for expanding technological cooperation