Terms of mortgage lending in Armenia under the state "Affordable  Housing for Young Families" program to improve significantly

ArmInfo. The conditions of mortgage lending in Armenia under the "Affordable Housing for Young Families" state program will significantly improve. The corresponding decision was made on March 7 at a government meeting.

Presenting the draft decision, Acting Minister of Affairs and Youth  Affairs of Armenia Gabriel Ghazaryan noted that the situation on  February 20 of this year 19 financial organizations participated in  the program - 14 banks and 5 credit companies. A total of 2019 loans  worth 33.7 billion drams were provided over the past year. According  to the new project, it is planned to increase the credit limit to 30  million drams instead of the current 25 million drams, while the  maximum loan rate will be 7.5% against the previous 9.5%. At the same  time, the size of the prepayment will also be equal to 7.5% instead  of the previous 9.5%. The loan repayment terms are also extended, now  they will be equal to 30 years. The Acting minister recalled that  young families with a total age of 70 years can participate in the  program.

According to the Rating of Armenian Credit Companies, prepared by  ArmInfo, as of January 1, 2019, the credit portfolio of "Affordable  Housing for Young People" UCO was 95.6 billion drams or $ 197.6  million.  In 2018, this figure increased only by 2.3%, against 19.6%  growth in 2017 Note that the <Affordable Housing for the Young> UCO  is intended to refinance mortgage loans.