Aktsern Company director: Armenian banks are inadmissibly strict

“Armenian banks are inadmissibly cautious when providing mortgage credits,” Director of Aktsern Company Hakob Baghdasarian said in response to a question of Aysor.am at the meeting with reporters today.

He said no development can be expected in the market – about 2,000 deals are signed a year, while there is an opportunity to increase their number to 60,000. In his words, banks establish strict conditions in order to avoid problems, but such caution will not produce good results. Armenian banks are much stricter compared to European ones, whereas a mild policy is needed in developing countries.

As regards the interest rates of banks and credit institutions, the speaker noted that the conditions of credit institutions are a bit milder, but their interest rates are higher, and eventually the result is the same for a borrower.