On June 24, Armenia-based Ardshininvestbank and the Black Sea Trade and Development Bank (BSTDB) signed an $8m loan agreement.

The agreement envisages allocation of mortgage loans.

Ardshininvestbank will attract the funds within the next six months and allocate long-term and low-interest mortgage loans up to $200,000.

“Housing construction once gave impetus to Armenia’s economic growth, but sustained serious losses because of the recent crisis. In this respect, the banking system is responsible for developing the real estate market and mortgage lending. Cooperating with the BSTDB enables Ardshininvestbank to rapidly increase its mortgage loan portfolio,” said Mher Grigoryan, Ardshininvestbank Board Chairman.

Short-term and high-interest mortgage loans are a major impediment to promotion of mortgage lending. “We want to improve the situation by implementing this project, solving a number of problems, particularly making mortgage loans more affordable,” Grigoryan said.