Accern President Urges Government To Be More Courageous At Real Esta


Oct 28, 2009

YEREVAN, October 28, /ARKA/. Accern Corporation president Hakob
Baghdasarian said the government should be more courageous in
implementing anti-crisis measures at real estate market. In an
interview with ARKA news agency he chided the government for being
too cautious in carrying out real estate market related programs.

"I am not saying that cautiousness is not necessary. What I am saying
is that at this stage the government should take some risk and when
the economy is put back on recovery track and when application of
stronger mechanisms will be possible, then it may show a bigger degree
of cautiousness,’ he said.

The construction sector has been a focal point of government efforts to
alleviate the consequences of the crisis. Last April, it approved 20
billion drams ($55 million) in loan guarantees to private developers
struggling to complete their housing projects. Some of construction
firms have reportedly received such guarantees since then.

According to Hakob Baghdasarian, market rules demand now risky actions,
while regulation of the sector may be put off ‘for better times.’

The most important step, he said, is to regulate the mortgage market,
because mortgage credits are accessible only to 1% of the population.

According to the State Real Estate Cadastre Committee, the number of
houses sold in the first 6 months this year fall by 14.2% from a year
before to 65,600 deals and by 20.6% against H2 of 2008.

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