French Development Agency and Armenia’s National Mortgage Company to launch a joint program in 2013 spring

YEREVAN, December 17. / ARKA /. The French Development Agency and Armenia’s National Mortgage Company will launch a joint program in 2013 March or April, deputy governor of Armenian Central Bank, Nerses Yeritsian said at a Monday discussion dedicated to ways to boost mortgage lending, raise energy efficiency of Armenian households and increase micro-financing.

The discussion was organized by the French Development Agency and Armenia’s National Mortgage Company as part of a program designed to make mortgage lending more available. This program will be implemented by Armenia’s National Mortgage Company across the country, Yeritsian said.

Today’s discussion was based on the findings of studies, made by Ameria consultancy in mortgage lending, energy efficiency and micro-financing sectors in Armenia. The studies were funded by the French Development Agency. The goal was to determine the conditions of households with average income, as well as the demand for improvement of housing conditions and raising their energy efficiency.

Yeritsian said the availability of long-term loans will spur mortgage market.

French ambassador Henry Reno, who was also present at the discussion, said Armenia’s urban population makes 70 percent and this factor opens new opportunities for boosting the mortgage lending and solving some of social problems.

Liana Kasper, French Development Agency regional director, said the agency operates in China, Thailand, Indonesia, Pakistan and other countries.

According to Armenia’s Central Bank data, the total amount of mortgage lending stood at 123.9 billion drams as of October 30, 2012, by 0.47 percent up from September. Some 60.4 billion drams were issued as loans in foreign currency and the rest in Armenia’s national currency, the dram.

The National Mortgage Company –Refinancing Credit Organization, was registered by the Central Bank in 2011, which is its only owner.

The French Development Agency is a public specialized financial institution, financing developments projects carried by government, local authorities, 

public companies, and the private and associative sectors on five continents. These projects focus on urban development and infrastructures, rural development, industry, financial systems, and education and health. It offers a range of financial instruments: subsidies, guarantees, shareholdings, and all forms of assisted and commercial loans—in response to each situation. -0-