YEREVAN, March 3, /ARKA/. Gevork Bosnoyan, the executive director of the Union of Armenian Mortgage Market Members (UAMMM), said Tuesday a program designed to introduce a partial insurance of mortgage liabilities was very likely to be kicked off later this year.
He said the core of the program is to introduce here international mortgage standards, enlarge chances of choosing available housing and give a push to home construction sector. He explained that the program calls for cutting the amount of mandatory down payment size form current 30% of the loan to 15%.
He said if implemented this would allow borrowers to get a home buying loan in the amount of 80% of its cost. He said also the plan would apply to people with regular income which is not enough, however, to make the down payment. He further explained that the 15% of the down payment would be secured by an insurance company and that would allow banks to provide risk-free loans to potential borrowers.
He said the project would be fully ready for introduction at the end of the third quarter. He also said that four insurance companies – Rosgosstrakh, Sil Insurance, Nairi Insurance and Cascade Insurance have endorsed the project, which has also the backing of the International Financial Corporation.
The Union of Armenian Mortgage Market Members was founded in 2006. Its members are 20 banks, insurance and crediting organizations as well as construction firms.-0-
