“The purport of the newly established Mortgage Fund is the Government’s short-term measures aimed at opposing the economic crisis, doing so in two directions – promoting both supply and demand,” RA Deputy Foreign Minister Vardan Aramyan told NEWS.am. “Promoting demand alone and investing funds in the economy, with any supply lacking, naturally means that the funds will be used for satisfying the demand by means of import. But this system enables us to promote demand on the real estate market as this is the secondary market that directs initial capital to the construction sector,” he said. “That is, if the profitability or prices slump on the secondary market, suppliers may encounter serious problems and terminate construction. But prices fall because of low demand – purchasers are lacking. The lack of purchaser is the result of lower incomes. Under the circumstances, we are also trying to encourage purchasers,” Aramyan said.

As to when the funds will be invested, he said that the RA Ministry of Finance has transferred the funds to the Central Bank of Armenia (CBA). So an answer to the question should be sought at the CBA or at the Mortgage Fund. “I can only say that the process is starting this September or October,” Aramyan said.

Of interest are also credit terms. According to Aramyan, “business will set the terms.” A prepayment of 20 to 30 per cent will depend on borrowers’ creditworthiness. “If a borrower has stable incomes, he may make a very low prepayment or not make it at all,” Aramyan said. He stressed that credit terms at the Mortgage Fund will be easier than before.