ARMENIA: GOVERNMENT WILL UNDERWRITE PROPERTY DEVELOPERS
Eurasianet
April 10, 2009
In a bid to restore confidence in Armenian banks, the Armenian
government on April 9 pledged 20 billion drams (roughly $55 million)
in loan guarantees for property developers, the Regnum news agency
reported. Prior to the onset of the global economic downturn, the
construction sector had been a locomotive for Armenian economic growth.
Prime Minister Tigran Sarkisian said that the state will primarily
underwrite housing or office projects that are more than half-way
completed. The prime minister stressed that Armenian banks do not
face liquidity problems, but are wary of investing in construction
because of higher risks, Armenian news sources reported.
Armenia’s booming construction business accounted for about a quarter
of the country’s Gross Domestic Product in 2008.