YEREVAN, March 27. /ARKA/. The International Finance Corporation (IFC) and Byblos Bank Armenia signed Tuesday $10-million agreement on mortgage lending to raise housing energy efficiency.
The agreement will step up mortgage lending in Armenia, energy economy, and greenhouse gas emission reduction.
“By financing our bank will give Armenian residents an opportunity to get modern energy efficient apartments, as well as repair their own housing using modern energy- saving technologies and building materials,” Byblos Bank Armenia Chief Executive Officer Ararat Ghukasyan said.
He said loans up to $ 100 thousand will be allocated for 15 years at interest rate identified by a market situation.
“The program will be completely ready in the second half of the year, and approximately in three months we will start distributing loans for energy efficient housing purchase or repair works ( under the condition that expenses on developing energy-saving technology use make 50% of the total repair cost) that, according to our calculations, will save nearly 10 % of electricity expenses,” he added.
IFC Senior Manager for Eastern Europe and Central Asia Tomasz Telma said along with loan allocations, IFC will also provide Byblos Bank Armenia with a package of consultation services.
“IFC has very significant experience in providing help to financial institutions in developing energy efficiency landing capacity in residential sector. Within the framework of the project, which is run in partnership with the Austrian Ministry of finance, we’ll provide training for the banks, loan officers and risk specialists to help them design the right products and assess the risks,” he said.
According to Telma, on the one hand the project offers long-term financing to successfully developing Byblos Bank in Armenia, and on the other hand, helps Armenia to save energy resources, reduce greenhouse gas emission and stimulate the struggle against global climate change.
Lebanese “BYBLOS BANK” SAL (“Byblos Bank” SAL) has been the main shareholder (65 %) of Armenian “ITB” International Trade Bank (in future renamed Byblos Bank Armenia) since October 2007 Other shareholders of the Bank are EBRD (25%) and International Development Fund OPEC. (10%). -0—
BYBLOS BANK ARMENIA to get $10 mln from IFC for expanding mortgage lending and housing energy efficiency
