ACCORDING TO PRIME MINISTER OF RA, DEVELOPMENT OF MORTGAGE MARKET REPRESENTS FIRST NECESSARY MEASURE IN CONSTRUCTION SECTOR
Noyan Tapan
Feb 18, 2009
YEREVAN, FEBRUARY 18, NOYAN TAPAN. The Armenian prime minister
Tigran Sargsyan conducted a consultation with representatives of
private construction companies on February 18. The ministers of urban
development and finance, Yerevan’s mayor, the chairman of the State
Revenue Committee took part in the consultation. According to the
press service of the government, the opportunities and prospects of
investment making under conditions of the global financial and economic
crisis, issues related to the state-private sector cooperation in
this situation were discussed during the consultation.
Speaking about the purpose of the consultation, the prime minister
said that the construction sector was one of the main driving forces
of Armenia’s economic growth in the past ten years. Construction work
was mostly done with private investments, with their considerable
part being provided by foreign partners.
T. Sargsyan proposed that the developers and investors participating
in the consultation should express their opinions about state
assistance in the current situation in order to ensure some activity
in construction sector and reduce the impact of the global crisis on
our market by joint efforts.
The representatives of the private sector presented their worries
and problems conditioned by the impact of the global crisis. These
problems were mainly related to the policy of credit provision, the
unrealistic and exaggerated forecasts and expectations regarding a
sharp fall in apartment prices in the market in the near future. Such
forecasts have a negative effect on the sector.
Summarizing the consultation, the prime minister underlined that
the first necessary measure is to develop the mortgage market which
will allow to solve the problems indicated by developers. The second
measure is continuing and completing the construction work envisaged
by state programs, including construction in the earthquake zone.