The founders of the association include “ArmEconomBank” (AEB), “Armenian Development Bank”, “ArmSwissBank”, “InecoBank”, “ArmInvestBank”, “Unibank”, “Areximbank”, trade banks, “Washington Capital”, “First Hypothec Company”, “Sil Insurance”, “Nairi Insurance”, financial loan and insurance companies, “Alta Vip”, “M & M”, “Premier Realty”, “Prime Insurance Brokers” “Elephant Realty” real estate agencies. The association’s charter was confirmed during the meeting and the council was formed.
“We don’t plan on appointing a council president. Since the members are from different banks and organizations, we decided to work together,” said executive director of the “Washington Capital” universal loan organization Mher Edigaryan. In any case, the council will soon elect an executive director of the Association.
Although anyone can join the association, however, only the organizations that are interested in the hypothec market join.
“I don’t believe that the work will be done until we get out there and do it. As soon as we achieve something, others will know about us. The founders, which are the initiators, look ahead,” said M. Yedigaryan.
What’s interesting is that three trade banks, including “Ararat Bank”, “Areximbank” and “Unibank”, all agreed to join the association days before the general meeting when the association had already discussed the conditions for entering two months ago.
President of the administrative staff at “Unibank” Vartan Atayan said the following in regard to that:
“They were following to see who would get chosen”, and then they decided to join.
“We don’t really place too much emphasis on the meetings. We care about the work being done,” said V. Atayan.
Work is already being done. “Unibank” has already suggested a 10 year hypothec loan for buying real estate in Yerevan or surrounding areas, with of course 16-48% interest rates.
Why was it necessary to found a hypothec association? M. Yedigaryan is not of the opinion that it was founded due to the rise in construction levels. As for executive director of AEB Ashot Osipyan, he believes that the hypothec market in Armenia is currently in the development stage. The low specific weight of the hypothec loans is proof of that. According to Osipyan, Armenia has passed the development stage, which all countries are currently going through; in other words, property and real estate have become capital in our country.
“There are less risks in the market now and there is a rise in the number of organizations involved in the hypothec market. We have to realize that the hypothec market is always developing and we must always have room for reforms,” says Osipyan.
The association has a goal to set regulations and standards for loans.
“We plan on extending the hypothec terms to 10 years and reduce interest rates by 10%. The association will work with the state and help make the hypothec market better,” says executive director of AEB. During the first session of the association on March 17th, members will confirm the project, according to which the association will present its issues and confirm the dates when they will be solved.
During the meeting, president of the Central Bank Tigran Sargsyan also congratulated the members. He said that he is happy that participants of the hypothec market have come together to try and set the rules of the game. The president of the Central Bank placed emphasis on the role that the German Development Bank plays. Although T. Sargsyan said that the Central Bank is going to have some control, however, he assured that there will be no decision made without the full consent of the association members.