CBA and German KfW Bank sign 20 mln EUR loan agreement on "Development of Sustainable Housing Market-Stage 4" program

"Development of Sustainable Housing Market- Stage 4"program. As the press service of CBA informed ArmInfo, the goal of the program is to ensure sustainable and efficient development of the housing market. 

 

According to the source, the loan funds will be provided by commercial banks and credit organizations, which will fully hold all the credit risks related to use of funds. The loan funds will be provided for mortgage lending in Yerevan and in the regions of the country, as well as lending of energy efficient projects. 

 

Within the cooperation technical assistance will also be provided, 

under which the program beneficiaries will receive relevant 

consultations. 

 

According to the Rating of Armenian Banks and Credit Companies prepared by ArmInfo News Agency the aggregate mortgage lending provided by banks and credit companies exceeded 288 bln drams (more than 596 mln USD) as of 1 January 2016 with the y-o-y growthslackening from 28% to 14% in 2015 while in the bank mortgage lending alone the growth slackened sharply from 22.2% to 8%. Converse Bank, Ardshinbank and Ameriabank hold the TOP-3 places in mortgage lending while among credit companies "Affordable Housing for Young Families" UCO and "National Mortgage Company" hold the first two places. All the Armenian banks without exception operate on mortgage market while from credit companies of Armenia "First Mortgage Company" UCO, "Fides" UCO,  "National Mortgage Company" and "Affordable Housing for Young Families" UCO operate on the market. The latter two are aimed to refinancing mortgage loans. 

 

To recall, KfW is one of the largest donors of Armenia. KfW investments totaled 500 mln EUR in 14 programs in 10 years, including in the field of small and medium business, agriculture, energy sector, ecology and financial-banking system. Armenia's foreign debt to the bank totaled 189.9 mln USD (4.4% of the total foreign debt of Armenia) as of January 1, 2016 with a 10.4% y-o-y decline. Accordingto the National Statistical Service of Armenia amount of Germany's investments in Armenia's real sector economy totaled almost 62 mln USD for 9 months of 2015 with a y-o-y 2-fold growth. Germany holds the second place by amount of investments into real sector of Armenian economy.