Monday, March 21 2011 15:38
Upcoming issue of mortgage bonds will boost mortgage market in Armenia
ArmInfo. Issue of mortgage bonds expected in late 2011 will help forming a dynamically developing secondary mortgage market in Armenia, says Gevorg Bosnoyan, Chairman of the Association of Participants in the Mortgage Market of Armenia, in an interview with ArmInfo. He believes that there are little opportunities in Armenia to upgrade accessibility of mortgage loans (lowering interest and extending maturity) for lack of a developed mortgage securities market.
The Association considers standardization of mortgage lending processes necessary for development of the mortgage market i.e. evaluation of a borrower's solvency, pledge security, and insurance aspects.
"Only a high-quality mortgage market with strictly elaborated mechanisms and standards will make us attractive for both local and foreign investors," Bosnoyan says.
He is sure that key investors in the Armenian securities can be insurance companies that have managed to form definite money reserves thanks to introduction of compulsory insurance in the country. The National Mortgage Company was established by the Central Bank of Armenia and is engaged refinancing of mortgage loans. The company earlier expressed an intension to organize issue of mortgage securities in Armenia, but crisis made it postpone the issue till more favorable period of time.