Kocharyan had an 8,000% income"

/25/bagratyan
07:33 pm | March 25, 2010 | Politics

The economic crisis was deeper in Armenia due to Robert Kocharyan’s
construction of "elite" buildings," said former RA Prime Minister
Hrant Bagratyan. He directly accused Robert Kocharyan. "I am accusing
that person and not only him, but the government, even international
financial organizations. How were you permitting the 3 billion dollar
construction of elite buildings in central Yerevan when there was no
demand for that? That 3 billion froze in construction," said Hrant
Bagratyan, adding: "First, where did Kocharyan get all that money
from? But that’s not even the issue. If that money was theirs or they
got a loan from the bank, it is a public resource that was frozen in
construction. There is nobody to buy it and the 3 billion doesn’t
serve the economic development."

According to Bagratyan, Robert Kocharyan’s statements don’t correspond
to reality. "We don’t see construction as a mobilizing force during
his term. Even during the best years, construction was only 35-40
percent more than the dark years, while physical volumes increased 8
fold."

Touching upon Kocharyan’s last words on construction, Bagratyan took
note that "he suffers because 12,000 apartments haven’t been sold."

"Kocharyan is indulged in that business not as president, but a
contractor. People were paying 1,000-1,500 dollars for a square meter
and a constructed square meter started from 3,000 to 5,000 dollars.
The buildings are 12-story buildings, 5,000 times 12 is 60,000
dollars. Income was worth 8,000 percent and by selling only 15% of the
constructed buildings, people got their money worth. The rest of the
apartments need to be sold, but of course, there is a problem with
sales," said the economist.

Hrant Bagratyan went into details and said that the maximum threshold
of construction during Kocharyan’s term was 1,800-2,500 houses with a
total surface area of 512,000 square meters. "Nearly 350,000 square
meters were built in 1993, which was the most heated year of the war.
They were not elite apartments in the center of the city, but
construction in Gyumri, Spitak and more, not counting the enormous
dormitories for the military in Karabakh."

Bagratyan mentioned that the economy is weaker than it was in 1993
which today’s government views as the years of cold and darkness.
"There was industry back then and the country was producing packages.
Even if it was more or less than during the Soviet era, but there was
production."

As far as Kocharyan’s view that the relativity of foreign deficit and
the GDP has reduced from 46% to 13% is concerned, Hrant Bagratyan said
that the dollar was devaluated two times during those years and that
46 would become 23, even if he didn’t do anything.

Hrant Bagratyan also touched upon the dollar-dram relativity and
predicted the continuation of the dram devaluation.