ArmInfo.Over the past two years, interest rates on mortgage loans have dropped significantly in Armenia, but there are currently no signals for a further fall in market rates. It's another thing if the government starts subsidizing mortgage loans and thus contributes to lower rates. This opinion was expressed during the online press conference held yesterday by the Director of Retail Banking Ameriabank Arman Barseghyan.
"In recent months, the real estate market of Armenia has intensified quite a bit, we have felt an increase in liquidity. According to official data, the number of real estate transactions has increased significantly - by 25-30%, which provoked a certain increase in real estate prices in some administrative districts - by 10-15%. And in this regard, it is very important that the number of new real estate projects has increased, "he noted, noting the growth in the number of deals and mortgages. For example, in Ameriabank for 9 months of 2018, the mortgage portfolio increased by 20%, and this trend continues, he stressed.
At the same time, the banker noted that the activity in the real estate market of Armenia forms the expectations of the citizens associated with the rise in real estate prices, and this will serve as an additional signal in an effort to get housing as soon as possible.
Speaking about Ameriabank's mortgage, A. Barseghyan noted that today there is an opportunity to get a mortgage loan of up to 100% of the value of the collateral. However, in some cases with new buildings, the Bank canceled the prepayment, and in the matter of estimating the cost of housing in new buildings, they are taken as the basis for the developer's price, which in turn, he stressed, simplified the procedure for issuing loans.
In general, A. Barseghian did not rule out that next year activity in the real estate market of Armenia and high volumes of mortgage lending will continue.
According to the Financial Rating of Banks of Armenia as of July 1, 2018, prepared by ArmInfo IC, in the loan portfolio of Ameriabank mortgage accounts for about 7% or 33.2 billion drams ($ 68.8 million, 1st position) with an annual growth of 53.3%. The share of consumer loans accounts for almost 9% of the loan portfolio of the bank or 45.4 billion drams ($ 87.8 million), with an annual growth of 74.6%. The first half of 2018, the Bank completed with a net profit of 5.9 billion drams ($ 12.3 million, 1st position), ensuring an annual growth of 77.4%.
Note that Ameriabank has been operating on the Armenian market since October 31, 1996. Shareholders of Ameribank on July 1, 2018 are Ameria Group CY Ltd. - 56.6%, EBRD - 17.8%, Asian Development Bank - 13.98%, ESPS Holding Limited - 11.62%. Ameriabank has a branch network of 16 subdivisions, of which 10 are metropolitan and 6 are regional.