ARMENIAN PM: AMD 3.5 BILLION PROVIDED TO CONSTRUCTORS BY GOVERNMENT SINCE BEGINNING OF 2009

ARKA
NOVEMBER 20, 2009
YEREVAN

YEREVAN, November 20. /ARKA/. The government has provided budget
guarantees of AMD 3.5 billion to constructors since the beginning of
this year, Armenian Prime Minister Tigran Sargsyan said at a routine
governmental meeting on Thursday.

"This small amount has been lent on quite strict terms and only to
those constructors having 50% of their construction completed," he
said. "This makes us confident that this money will help to complete
construction."

The premier said that the government-provided credit guarantees gave
ground for rumors, which have nothing in common with the reality.

"This is one of the decisions that have prompted criticism from
our opponents, who are unhappy about the government’s support for
constructors," Sargsyan said.

"It seems constructors are foes to our nation and deserve no support,
because the crisis is their fault."

"These funds are insignificant, and allegations that we dissipate
the credit resources received from Russia are groundless," the
premier said.

He stressed that the government provides guarantees, and commercial
banks extend loans.

So, banks control risks. It means if banks find borrowers risky,
they refuse to lent money them.

Besides, he said, the guarantees are under public control, since all
criteria are worded quite clearly and observed accurately.

On Thursday, the government provided another guarantee.

The guarantee of $500,000 was given to Norashen Constructor Company
for completing construction of an apartment block.

From: Emil Lazarian | Ararat NewsPress