IFC Supports Primary Mortgage Market Development in Armenia
IFC, a member of the World Bank Group, is helping develop the mortgage market in Armenia by increasing public awareness and consumer knowledge in mortgage lending. To help people better understand the benefits and adequately assess the risks of taking mortgage loans, IFC's Armenia Banking Market Development Project has published a Mortgage Borrower Guide.
The Guide is one of the components of IFC advisory services in the framework of cooperation between IFC/WB and the Central Bank of Armenia, as well as other key Armenian financial sector participants. As in many developing countries the growth of mortgage lending in Armenia has been hindered by a lack of unified market standards, inadequate legislation, and limited public understanding of mortgage markets. IFC is pursuing a comprehensive, programmatic approach to address these issues.
"Developing the mortgage market is directly related to increasing living standards and expanding financial markets in Armenia," said Thomas Lubeck, IFC Regional Head, Caucasus. "We are glad to be helping Armenian individuals understand better one of life's most important financial transactions."
The Mortgage Borrower Guide, developed in cooperation with the Armenia Mortgage Market Participants' Association, addresses the questions people might have when applying for a mortgage loan, and provides explanations of common mortgage-related terms, practices and procedures. The Guide is available free of charge for current and future mortgage borrowers in the offices of major commercial banks in Armenia and in the Armenia Mortgage Market Participants' Association.
The IFC Armenia Banking Market Development Project is run in partnership with Austria Development Agency GmbH and the Government of Netherlands.
Since 2000, IFC has been investing in Armenia to support financial institutions, small retailers, and the hotel industry, among others, and implemented advisory projects to improve the business environment and strengthen the financial sector.
IFC is the only international financial institution focused exclusively on the private sector, the engine of sustainable development in emerging markets. Along with IBRD, it is currently seeking a capital increase to strengthen its ability to create opportunity for the poor in developing countries-including by supporting mortgage market development in Armenia.
