ArmInfo. The state should help stabilize the real estate market. The founder of the Banking Management School Ashot Osipyan told about this on December 9 during a zoom conference organized by the Economic Journalists Club.
''When the real estate market is down, loans become problematic. The state should implement a long-term program for the development of the mortgage market by providing cheaper loans, "he said. In this vein, Ospiyan explained that this should be a special program with special affordable interest rates, which would artificially shape the supply in the real estate market.
In addition, he pointed out the need to stimulate construction and introduce legislative changes in this area. In this regard, the expert recalled the law on property tax initiated by the government, the adoption of which he considered inappropriate during the coronavirus pandemic, but this appeal did not find a response from the authorities.
According to the Financial Rating of Banks and the Ranking of Armenian Credit Companies prepared by ArmInfo IC as of September 30, 2020, in total, taking into account the mortgage portfolio of banks and four mortgage companies (National Mortgage Company, Affordable Housing for Young People, Fides and the First Mortgage Company), the volume of mortgage loans amounted to 662 billion AMD ($ 1.4 billion), with an annual growth of 30.2%. Moreover, in the banking system alone, the mortgage portfolio grew by 36.3% in y-o-y terms. The total mortgage portfolio of ''National Mortgage Company" and "Affordable Housing to Young People'' amounted to 200 billion drams ($ 409.4 million) with an annual growth of 19.6%. All 17 Armenian banks operate in the mortgage market, and 10 of them, along with the classic mortgage, also provide energy-efficient "green" loans for the purchase / construction / renovation of housing.
It should be noted that the National Mortgage Company CJSC and the Affordable Housing for Young People CJSC have been operating in Armenia since October 2010. The Central Bank of the RA is the sole founder and shareholder of these companies. Companies are called upon to refinance mortgage loans from financial organizations. Moreover, since 2019, according to the revised, more affordable and attractive lending conditions, with regard to the interest rate, prepayment, loan amount, maturity, subsidies, and within the framework of the housing to young people program, in addition to the above, the requirement for the total age of spouses applying for a mortgage loan has been improved.
