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Economic changes in Russia could hit Armenian builders – head of Central Bank

05.02.2025, 10:35
The economic processes taking place in Russia may also affect construction workers who have migrated from Armenia to Russia in search of work, said Martin Galstyan, Chairman of the Central Bank of Armenia.
Economic changes in Russia could hit Armenian builders – head of Central Bank

YEREVAN, February 5. /ARKA/. The economic processes taking place in Russia may also affect construction workers who have migrated from Armenia to Russia in search of work, said Martin Galstyan, Chairman of the Central Bank of Armenia.

He specifically mentioned the high interest rate of 30% for loans as one of the reasons for this development, which makes business financing, including in the construction sector, unprofitable.

"The second factor that could have a significant impact is the withdrawal of preferential mortgage programs from the market. In this context, we expect a slowdown in the construction sector. These phenomena, along with the overall trend of the Russian economy declining in 2025, have naturally been reflected in our calculations, due to the strong interconnectedness of our economies," he said during a press conference on Tuesday.

He also noted that the construction boom in Armenia, along with the reduction in income disparities, has led many builders to prefer staying in Armenia rather than going abroad to earn money. According to Armenian Statistical Committee, the volume of construction work in Armenia from January to November 2024 exceeded 567 billion drams (at current prices), marking a 14.9% increase compared to the same period in 2023.