Discussion on Mortgage Loan Project Heats Up

In the Economic Commission of the National Assembly, a closed discussion was held yesterday with the participation of representatives from the ruling party and banks, including the Central Bank, which was quite heated. The topic was a legislative proposal authored by Gevorg Papoyan from the ruling party, which was quietly approved in the first reading during the last parliamentary session.

According to the proposal, when a citizen purchases an apartment with a mortgage loan from a bank on the primary market, the bank should not transfer the entire loan amount to the developer upfront; instead, it should transfer only 25% to the developer, while the remaining 75% would be paid once the apartment is constructed and handed over to the owner.

To clarify, when a citizen buys a home using a mortgage, the contracts signed for the unconstructed property serve as collateral at the bank, which then transfers the loan amount to the owner. However, the rationale behind such a change is not specified in the proposal, ostensibly for the citizen's benefit, to prevent any developer from