GOVERNMENT’S LOAN GUARANTEES TO PRIVATE DEVELOPERS REINVIGORATE SECTOR
ARKA
September 7, 2009
Yerevan
YEREVAN, September 7, /ARKA/. David Harutyunian, an aide to prime
minister, defended last Friday the government’s plan to provide loan
guarantees to private developers to help them complete their unfinished
housing projects as part of its anti-crisis measures.
David Harutyunian, who is also the secretary of a special working
group established to promote economic recovery programs, said the
government guarantees have given a strong push to the sector that
had been the locomotive of Armenian economy before the crisis.
Last April, the government approved 20 billion drams ($55 million)
in loan guarantees to private developers to help them complete their
housing projects. Five construction firms have reportedly received
such guarantees since then.
Late in August it approved $2 million in loan guarantees to a private
AVO developer to finish construction of a residential building on
Abovian street in central Yerevan.
According to official figures, construction sector shrank by 55.5
percent in the seven months of this year, contributing to the total
GDP fall. But according to David Harutyunian, the sector began to
steadily grow since last May, when volume of construction rose 88 %
against April.
In June it rose 130% from May and in July 4.5% from June.
The government said also it will spend part of a $500 million
anti-crisis loan provided b y Russia, on housing construction in
Armenia’s northern regions and another $33 million portion of the
loan will be channeled into a recently established state mortgage fund
assigned to provide relatively cheap housing loans to the population.