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.
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.