ArmInfo. Within the partnership with National Mortgage Company, Converse Bank launched the 4th stage of KfW funded mortgage project on effective housing construction support in Armenia. According to the information shared with ArmInfo by the press office of the Bank, within the fourth stage of the project two aspects will be launched: Energy Efficient Mortgage Loans and Regional Mortgage Loans. At that, the second dimension does not comprise any compulsory requirements of energy efficiency securing.
According to the source, the maximal limit of the loan is set at AMD 25 mln, the repayment period does not exceed 20 years, and the interest rate forms annual 11%. The terms of loans available for the residents of far regions of the country, as well as the utilization of environmentally clean material used in construction and renovation works, are the most important elements of Converse bank loan policy. Due to this project the mortgage clients can improve their housing , secure better warming conditions within the implementation of new technologies in the process of construction or renovation, and to get to energy saving, as well as to purchase home appliances of a higher category.
To remind, the German KfW Bank has provided Armenia with a EUR 20 mln loan (in AMD equivalent) or implementation of the fourth stage of the mortgage lending program, CEO of National Mortgage Company UCO Hayk Voskanyan and KfW representative Judith Boehnke said at a press conference on February 1. The current stage the program partners will be 5 banks and 3 UCOs, which will receive the funds from the National Mortgage Company (the UCO that refinances mortgage loans). The program participants are ACBA Credit Agricole Bank, Converse Bank, Armbusinessbank, INECOBANK, Ardshinbank, First Mortgage Company UCO, Global Credit UCO and Kamurj UCO. To note, National Mortgage Company UCO was founded on 16 June 2009 by the Central Bank's decision to refinance mortgage loans. As of 1 Jan 2017, the total amount of the loans refinanced by the NMC amounted to over 53 bln AMD (39% year-over- year growth). The assets totaled 57.3 bln AMD, with 23.4 bln AMD of this amount being the share of the loan book. The NMC's total capital amounted to 23.4 bln AMD (45.4% year-over-year growth). At the yearend of 2016, the NMC's net profit was 1.3 bln AMD (25% year-over-year growth). (The average AMD/USD exchange rate on 31 December 2016 was 483.94 AMD/$1).
According to the Financial Rating of Armenian Banks and Credit Companies, as of 1 October 2016, the summary mortgage lending portfolio amounted to 321.2 bln AMD ($677 mln), with 41% or almost 132 bln AMD ensured by NMC, Affordable Housing for Young Families, First Mortgage Company, and Fides. Over the specified period, the mortgage lending year-over-year growth slackened from 23% to 15.6%.