Converse Bank launched the 4th stage of KfW funded mortgage project  on effective housing construction support in Armenia. 

ArmInfo. Within the partnership with National Mortgage Company, Converse  Bank launched the 4th stage of KfW funded mortgage project on effective housing construction support in Armenia. According to the information shared with  ArmInfo   by the press office of the Bank, within the fourth stage of the  project two aspects will be launched: Energy Efficient Mortgage Loans  and Regional Mortgage  Loans. At that, the second dimension does not  comprise any compulsory requirements of energy efficiency securing. 

According to the source, the maximal limit of the loan is set at AMD  25 mln, the repayment period does not exceed 20 years, and the  interest rate forms annual 11%. The terms of loans available for the  residents  of far regions of the country, as well as the utilization  of environmentally clean material used in construction and renovation  works, are the most important elements of  Converse bank loan policy.   Due to this project the mortgage clients can improve their housing ,  secure  better warming conditions within the implementation of new  technologies in the process of construction or renovation, and to get  to energy saving, as well as to purchase home appliances of a higher  category. 

To remind, the German KfW Bank has provided Armenia with a EUR 20 mln  loan (in AMD equivalent) or implementation of the fourth stage of the  mortgage lending program, CEO of National Mortgage Company UCO Hayk  Voskanyan and KfW representative Judith Boehnke said at a press  conference on February 1.  The current stage the program partners  will be 5 banks and 3 UCOs, which will receive the funds from the  National Mortgage Company (the UCO that refinances mortgage loans).  The program participants are ACBA Credit Agricole Bank, Converse  Bank, Armbusinessbank, INECOBANK, Ardshinbank, First Mortgage Company  UCO, Global Credit UCO and Kamurj UCO. To note, National Mortgage  Company UCO was founded on 16 June 2009 by the Central Bank's  decision to refinance mortgage loans. As of 1 Jan 2017, the total  amount of the loans refinanced by the NMC amounted to over 53 bln AMD  (39% year-over- year growth). The assets totaled 57.3 bln AMD, with  23.4 bln AMD of this amount being the share of the loan book. The  NMC's total capital amounted to 23.4 bln AMD (45.4% year-over-year  growth). At the yearend of 2016, the NMC's net profit was 1.3 bln AMD  (25% year-over-year growth). (The average AMD/USD exchange rate on 31  December 2016 was 483.94 AMD/$1).

According to the Financial Rating of Armenian Banks and Credit  Companies, as of 1 October 2016, the summary mortgage lending  portfolio amounted to 321.2 bln AMD ($677 mln), with 41% or almost  132 bln AMD ensured by NMC, Affordable Housing for Young Families,  First Mortgage Company, and Fides.  Over the specified period, the  mortgage lending year-over-year growth slackened from 23% to 15.6%.