Yerevan, Armenia, July 29, 2009—
IFC, a member of the World Bank Group, today convened a broad-based working group that seeks to increase access to home financing in Armenia.
The group, conceived by the Central Bank of Armenia, will work to identify key constraints to the development of the primary and secondary mortgage markets in Armenia, recommend legislative remedies, advocate improved national mortgage lending standards, and introduce best international practices.
The working group consists of representatives of IFC, the World Bank, the Central Bank of Armenia, German development bank KfW, the U.S. Agency for International Development, and major stakeholders from the banking and finance industries. Some group members, including those from IFC and KfW, bring considerable experience and expertise in international mortgage finance to the deliberations.
“IFC’s support of our initiative in promoting mortgage financing project is very important,” said Arthur Javadyan, Governor of the Central Bank of Armenia. “The Central Bank appreciates IFC’s active involvement in helping develop the primary and secondary mortgage markets in Armenia, considering its knowledge of mortgage financing in developing countries.”
IFC experts from Indonesia, Russia, and the United States recently organized a presentation for commercial banks highlighting the market and regulatory conditions necessary for the successful operation of liquidity facilities and secondary mortgage market companies in the country.
These efforts are part of the strategy of the IFC Armenian Banking Development Project aimed at improving the legal and regulatory framework in the country related to insolvency, distressed asset management, and residential mortgage lending, and assisting IFC clients during the financial crisis.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $15 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit
www.ifc.org
.
