In the market of mortgage loans, according to our observations, there was an increase in the interest rate during the past year. Governor of the Central Bank of Armenia (CBA), Martin Galstyan, said this at the National Assembly Thursday.

"The Central Bank has conducted a restraining monetary policy in the last two years. Naturally, the increase of interest rates by the Central Bank also leads to the increase of other types of interest rates in the market, including mortgages. However, the increase in the mortgage loan interest rate was milder than even the increase in the refinancing interest rate of the Central Bank," Galstyan noted.

As for the real estate market of Armenia, the CBA chief confirms that there has been a certain increase in prices in this market for years.

"In this regard, we have two methods: we try to primarily compare the growth of people's real income with the growth of financial or non-financial assets. And by comparing both our two methods, we see that the growth in the real estate market is higher than the growth of real income; therefore, in our opinion, there is some more growth [in the real estate market of Armenia] than it should have been," said Martin Galstyan.