TIGRAN SARGSYAN: ARMENIAN ECONOMY ENTERED REHABILITATION PERIOD

PanARMENIAN.Net
April 22, 2010 – 14:11 AMT 09:11 GMT

The National Statistical Service of Armenia published macroeconomic
indices, according to which, economic growth was 5.5% in the first
quarter of 2010.

"Thus, we can state that our economy entered a rehabilitation period,"
RA Prime Minister Tigran Sargsyan said at the government session on
April 22.

According to him, in the first quarter of 2010 the growth in
the industry sector was 10%, specifically, electricity generation
increased by 10%. A 3.2% growth was recorded in the agriculture sector
while the fall in the construction industry persists due to economic
diversification, on the one hand, and lack of private investments in
the sector, on the other hand.

Mr. Sargsyan mentioned that 75% of construction projects were financed
by the private sector in 2008.

He said that the government did not allocate resources to finance
the construction industry but merely provided state guarantees to
complete construction. According to Mr. Sargsyan, the government
stimulated commercial banks to finance the construction, with banks
completely assuming the valuing risk.

"The state guarantees ranked AMD 5bn, with resources allocated
for mortgage financing by commercial banks exceeding crediting of
incomplete construction three-fold," he stressed.

The government only funded establishment of the National Mortgage
Company (UCO) (AMD12bn) and Apartments for Youth (AMD 3bn), the Prime
Minister said.