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YEREVAN. - Securitization of mortgage loan will become possible in Armenia, pursuant to the draft amendments to the Civil Code and a number of accompanying bills, which Deputy Chairman of the Central Bank of Armenia (CBA) Nerses Yeritsyan introduced in the parliament today.

According to him, banks and credit organizations can now issue security papers ensured by the granted credits (for instance, mortgage). Bu the permission is merely de jure, while the things get more complicated in practice.

Buyers of such bonds will have to pay a fee for property re-registration, and not only for the bond itself but also for all the mortgage credits behind it. For obvious reasons there might be hundreds if not thousands of such credits (depending on the volume of emission). This very fact impedes the issuance of bonds on the basis of credits.

Now it is proposed to set a fee in the amount of merely 1,000 AMD (a little more than $2) for the purchase and sale of bond package. 

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