UBA, A. Ananyan: There are no prerequisites for the emergence of  "mortgage bubbles" 

ArmInfo. In 2021, the growth of the mortgage market will be recorded in Armenia, mainly due to the growth of lending for the purchase of real estate. This hope was  expressed by the Chairman Union of Banks of Armenia, Chairman of the  Ardshinbank Management Board  Artak Ananyan.

"As an important factor in the stabilization of the credit market, I  want to draw attention to the development of mortgage lending  programs at attractive interest rates for the formation of market  demand, "A. Ananyan said, noting that he sees no prerequisites for  the emergence of"mortgage bubbles".

He added that even in the difficult coronacrisis of 2020, the  mortgage market continued to grow, and the main key factors were: the  government's decision to refund income tax; the constant improvement  in lending conditions dictated by fierce competition between banks;  and the cooperation of banks with developers.

Of course, the Central Bank and the UBA are concerned about the fact  that the solvency of the population is declining, and consumer loans  are growing, but this does not mean that there are fears of bubbles.   In any case, such risks are not expected in the foreseeable future,  said Ananyan, expressing the likelihood that the growth rate in the  consumer lending market will begin to decline.

According to his forecasts, the rapid growth of non-cash payments  will continue due to the entry into the country of the Android pay  system, whose services are already provided by two Armenian banks. "I  have no doubt that Apple pay will also enter the Armenian market.   Perhaps there will be new products and technologies related to  non-cash transactions, " he expects.

"I want to make it clear - any crisis, any epidemic will end one day.   And if we come out of this with honor, we will have a completely new,  completely transformed financial and economic system. Today, the  changes taking place in banks, stock exchanges, information and other  areas are already radical. These changes will become a healthy basis  for further economic growth and financial development of our country,  " confidently concluded A. Ananyan.

It should be noted that according to the Financial Rating of Banks  and the Ranking of Credit Companies of Armenia as of 31.12.2020,  prepared by the IC ArmInfo, in total, taking into account the  mortgage portfolio of banks and four mortgage companies, the volume  of mortgage loans amounted to 693.5 billion drams ($1.3 billion),  with an annual growth of 23.3%. Moreover, in the banking system  alone, the mortgage portfolio grew by 26.8% year-on-year (to 466.1  billion drams or $892 million).

All 17 Armenian banks operate in the mortgage market, and 10 of them,  along with classical mortgages, also provide energy-efficient "green"  loans for the purchase/construction/repair of housing. It should be  noted that CJSC RCC "National Mortgage Company" (NMC) and CJSC RCC  "Affordable Housing for Young People" (AHYP), operating in Armenia  since October 2010, are called upon to refinance mortgage loans of  financial organizations, and from 2019 already under revised, more  affordable and attractive lending conditions.