Expert: There are no signals for further reduction of interest rates  on mortgage loans

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.