Central Bank intro’s mechanisms for protection of mortgage credit consumers’ rights

The Central Bank is seeking to solve the transparency issues of mortgage loaning in Armenia and clarify conditions and rules, which will enable consumers to protect their rights.

The Parliament is debating the “Apartment mortgage loaning” bill.

Vice President of the Central Bank Nerses Yeritsyan said the law will solve several problems and is 100% aimed at the protection of consumers’ rights.

“As result the trust issue of consumers will be solved. The issue of loan product selection is set forth, meaning as result of regulations the consumers are given wider opportunities, which in turn will increase competitiveness within the mortgage market”, Yeritsyan said.

“The consumer will known all expenses and what the factual interest rate will amount as result of expenditures”, he added.

The bill includes a provision for early re-payment of the mortgage loan, which isn’t defined in the current law.