Armenia needs to boost mortgage market to stimulate construction: Premier

YEREVAN, February 18. /ARKA/. Armenia should boost mortgage market to be able to maintain the current rates of construction business, RA Prime Minister Tigran Sargsyan said today as he met with representatives of local construction firms.

The premier stressed the importance of implementing government programs for completing construction activities in the quake-hit area, the RA Government’s press service reports.

The participants at the meeting discussed possible participation in construction programs and the government’s assistance to those initiatives.

They also touched upon current capacities, investment opportunities and development prospects of the construction sector amid the global financial and economic crisis.

In the past 10 years, construction was the motive force of Armenian economy, Sargsyan said, emphasizing the role of overseas partners in boosting the sector.

“The assessments you have got, the expectation and existing programs are of crucial importance for the government,” the prime minister said, emphasizing the role of financial forecasts in the coming two years. “You are well aware of the current situation in the market and know what is in demand now,” Sargsyan continued.

The premier suggested that the businessmen submit their proposals to the government in order to get necessary assistance during the financial crisis.

Hailing the RA Government’s policy, the representatives of local construction firms discussed possible cooperation with the government.

They expressed concern over the impact on the global crisis on Armenia’s economy and construction business, pointing out lack of credit funds, gloomy economic forecasts and the expected drop in property prices.

The Armenian premier vowed staunch support to the owners of construction firms and said the government is open to the new forms of cooperation. He urged the businessmen to collaborate with the Central Bank as well.

According to the RA National Statistical Service, Armenia posted 6.8% year-on-year economic growth in 2008, with construction being 15.7% of GDP. Last year, capital construction rose 1.7% year-on-year to 824.4bln drams ($2.7bln). Z. Sh. –0--