Owing Each Other as Long as Living in Armenia
State Committee of Real Property Cadastre of RA Government periodically provides information on real estate market, which, at first glance, is from general statistics, however, in fact, it expresses Armenia’s socio-economic upsetting, tragic snapshot. For instance, according to those data 14 658 deals have been recorded towards real estate in the country throughout May 2016. 13.4% (1964) from these deals are credits granted by pledge of real estate.
It’s worth stating for comparison that in May 2015 number of deals on credits granted by pledge of real estate comprised 1355. What is this sharp—45% growth conditioned by against the background of decrease in general deals? Increase of credits with pledge of real estate means that deal on granting loans and credits by pledge of real estate have considerably increased. In its turn, this means that number of people and families have grown, which, not finding another way out, to solve this or that social issue have to take the most extreme step and take loans by pledge of real estate with high interest rates.
Moreover, these pledges have nothing to do with mortgage market, as it may seem at first glance, as in case of mortgage loan alienation deal is concluded as well.
Thus, in case of sharp activation of mortgage market alienation deals should have been increased as well. However, pursuant data provided by the very Cadastre, number of real estate alienation deals decreased by 10% as compared to May 2015.
Moreover, it doesn’t refer only to bank and mortgage organizations.
Recently the practice of “borrowing money by interest rates” by pledge of real estate has become widely spread, when it’s provided by individuals with rather high interest rates, which are even higher than those provided by the bank.
Thus, data issued by the Cadastre “spoil” titanic work by the State Committee of Real Property Cadastre of RA Government, towards providing “brilliant,” “jumping” and “progressive” temps of economic growth. In fact, economic decline, real, non-statistical decline has entered every family, every house, some part of which is becoming a subject for pledge to solve the issue of existence.
Full article will be available at today’s publication of “168 Hours” newspaper
