CBA: National Mortgage Company CJSC and Home For Youth CJSC announced  a six-month delay in mortgage payments

ArmInfo.In Armenia, the National Mortgage Company CJSC and Home For Youth CJSC refinancing companies 0announced a deferral of mortgage payments for up to 6 months (i.e.  through September inclusive). According to the press service of the  Central Bank of Armenia, received by ArmInfo, these companies,  following the situation arising in connection with the spread of  coronavirus and aiming at assisting borrowers faced with financial  difficulties, took this step to temporarily exempt mortgage clients  from repaying the main loan amount.

The Central Bank said that in order to take advantage of this  opportunity, borrowers in financial difficulties should contact the  bank or the credit company that provided them with a mortgage.

At the same time, the National Mortgage Company CJSC and Home For  Youth CJSC urge all those who do not face a financial difficulty to  continue their monthly repayments and to make payments online if  possible.  

It should be noted that National Mortgage Company CJSC and Home For  Youth CJSC have been operating in Armenia since October 2010. The  sole founder and shareholder of these companies is the CBA.   Companies are called to refinance mortgage loans of financial  institutions.  

According to the data of the Financial Rating of Banks and the  Ranking of credit companies of Armenia as of January 1, 2020,  prepared by ArmInfo IC, in total, taking into account the mortgage  portfolio of banks and four mortgage companies (National Mortgage  Company CJSC, Home For Youth CJSC, Fides and First Mortgage Company),  the volume of mortgage loans amounted to 562.2 billion drams ($ 1.2  billion), with y-o-y growth of 31.3%, and in a three-year context -  by 71.3%. Moreover, only in the banking system the mortgage portfolio  grew by 40% in 2019. The total mortgage portfolio of National  Mortgage Company CJSC and Home For Youth CJSC amounted to 183.3  billion drams ($ 382.1 million) with an y- o-y growth of 19.3%, and  in a three-year context- by 40%. All 17 Armenian banks operate on the  mortgage market, and 10 of them, along with the classic mortgage,  also provide energy-efficient green loans for the purchase /  construction / repair of housing.  

It should be noted that, according to the Central Bank of the  Republic of Armenia, interest rates on mortgage loans decreased on  average from 10.6% in 2018 to 10.2% in 2019. In particular, the rates  on dram mortgage loans decreased from 11.1% in 2018 to 10.8% in 2019,  and on dollar mortgage loans - from 9.9% in 2018 to 9.7% in 2019.  According to experts, interest rates, and not only for mortgages,  have identified a side trend in the fourth quarter of 2019.