Decline In Construction Sector Evidence Of Economic Diversification,

April 22 2010

"With 5.5% growth in general, we still register a decline in the
construction sector. On the one hand, it is evidence of diversification
of the economic system and of less dependence of the construction
sector’s development. On the other hand, it means that private
investments are not yet directed to the construction sector," RA
Prime Minister Tigran Sargsyan stated at the RA Government’s sitting
on April 22. He pointed out the erroneous opinion that, under its
anti-crisis program, the Government has funded the construction
sector. "Nothing of the kind has been done. We have not directed our
cash to the construction sector. Rather we encouraged commercial banks
to fund incomplete construction projects, particularly the ones with
the larger portion of works completed and the market value of the
mortgaged property rather high," the Premier said.

According to him, the financial guarantees totaled 5bn AMD, while
the funds directed to mortgage lending are at least three times as
much as the funds provided to commercial banks for completing the
construction projects.

"Of importance is an increase in the retail trade, as well as an
increase of about 6% in services the first trimester. Exports showed
a 60% increase, and imports a 23% increase. Of course, the mining
industry, and improved world economic situation, account for the
increase in exports," Sargsyan said.

"Yesterday the International Monetary Fund stated it would have to
upgrade its forecasts for 2010, as the results of the first trimester
proved to be better than forecast. This means the world economic
recession is getting mild. The Russian and Ukrainian Premiers made
similar statements. They are countries exerting serious influence on
the Armenian economy," T. Sargsyan said.
From: Baghdasarian

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