Friday, March 2 2012 18:39
120 young Armenian families' applications for car loans on preferential terms approved under state program of subsidizing
ArmInfo. More than 120 young Armenian families will be able to receive car loans on preferential terms, Deputy Minister of Sport and Youth Arsen Karamyan said at a press conference on Friday.
He said that the state project "Affordable cars for young families" will be launched on 15 April 2012. The project was included in the pre-electoral program of Armenian President Serzh Sargsyan.
"The terms of provision of car loans to the young families have been worked out jointly with the Central Bank. According to these terms, the state subsidizes 2% of the interest rate of the car loans. As a result, the loans will be provided at the rate of 10% p.a. for a period ranging from 7 to 10 years with due regard for the borrower's creditworthiness", the deputy minister said. He added that at the moment the minimal interest rate in the market of car loans is 13-14% p.a.
He said that for this project the state allocated 500 mln AMD. State financing of this program will continue in case of the relevant demand. Under a relevant agreement with Kia Motors Armenia, young families will receive an opportunity to acquire Kia cars of three classes worth 3-4 mln AMD, 4-5 mln AMD and 6-7 mln AMD respectively. The warranty period is 5 years.
The families, whose composite age does not exceed 65 years, will be able to receive the car loans. "In addition, none of the family members shall have a transport vehicle registered on his/her name at the moment of receiving of the car loan, and the monthly income of each of the members shall be 60 thsd AMD and more", Karamyan said. He added that at the moment 189 applications for car loans are registered, and only 120 of the applicants are acknowledged solvent.
The state program "Affordable cars for young families" will be implemented with the support of the Central Bank of Armenia and the German-Armenian Fund.
To note, by late 2011 the summary portfolio of the banks' car loans of Armenia amounted to 17.8 bln AMD (y-o-y decline by 32.6%), which was conditioned by the crisis background being observed since 2008.
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