ARMENIAN GOVERNMENT GIVES STATE GUARANTEES TO 6 DEVELOPERS

NOYAN TAPAN
SEPTEMBER 7, 2009
YEREVAN

The Armenian government has launched the implemention of State
Guarantee for Completion of Incompleted Apartment Buildings anti-crisis
program. Assistant of the Armenian prime minister, head of the
working group for assistance to programs on economic development David
Harutyunian said at the September 4 press conference that the purpose
of the program is to give state budget guarantees to developers.

"Under this program of the RA government, no sums, let alone sums
at the expense of the loans received, are provided. We give budget
guarantees to developers. That is, with a state guarantee banks
give credits to developers," D. Harutyunian said. According to him,
thanks to this the banks will use their credit resources with minumum
risks. Thus the government helps so that the risks will decrease and
the banks will be able to allocate credits.

It was mentioned that the government has already given state guarantees
to 6 developers: Elite Group CJSC, Hermek LLC, Levon Amirkhanian LLC,
M.G. Housing LLC, Avo F.M.H. LLC, and businessman Vahe Harutyunian. A
total of 12 million dollars was given to these developers with the aim
of constructing housing of 116 thousand square meters. D. Harutyunian
added that several programs of about 5 million dollars are now being
discussed.

He said that since May 2009 construction volumes in Armenia have
shown a tendency to grow. "The growth in construction was 88% in
May on April, about 130% in June on May, and 4.5% in July on June,"
he said. In his words, by data of the State Committee of Cadastre
sales and purchases increased by 36.1% in June.

From: Emil Lazarian | Ararat NewsPress