YEREVAN, 3 June. /ARKA/. In case of a bad scenario, the potential ‘overheating’ of prices in Armenia's real estate market may reach 30%, Central Bank Chairman Martin Galstyan said at a press conference today.

'So we try to take it into account in our actions and policies,’ he said, presenting the report on financial stability for 2023.

Asked what specific consequences such ‘overheating’ could lead to, Galstyan said that if a very bad scenario is realised, the developments could be very unpleasant.

‘If you have a dwelling that costs “X”, its price may become “X minus 30%” with all the consequences,’ he said, adding that in this case there are issues of further repayment of mortgage loans.

However, the central bank governor said, ‘at the moment we are talking about some risks to financial stability, not to households or businesses.’ ‘

He also added that the level of market saturation is quite high, and by the situation at the moment experts can signal that the market is at a point of very high uncertainty.  

In early February this year, Armen Nurbekyan, deputy chairman of the Central Bank, said that the volume of mortgage loans in Armenia reached the volume of consumer loans for the first time, exceeding 1 trillion drams. ($1 - 387.52 drams) -0-