The National Statistical Service of Armenia published macroeconomic indices, according to which, economic growth was 5.5% in the first quarter of 2010.
“Thus, we can state that our economy entered a rehabilitation period,” RA Prime Minister Tigran Sargsyan said at the government session on April 22.
According to him, in the first quarter of 2010 the growth in the industry sector was 10%, specifically, electricity generation increased by 10%. A 3.2% growth was recorded in the agriculture sector while the fall in the construction industry persists due to economic diversification, on the one hand, and lack of private investments in the sector, on the other hand.
Mr. Sargsyan mentioned that 75% of construction projects were financed by the private sector in 2008.
He said that the government did not allocate resources to finance the construction industry but merely provided state guarantees to complete construction. According to Mr. Sargsyan, the government stimulated commercial banks to finance the construction, with banks completely assuming the valuing risk.
“The state guarantees ranked AMD 5bn, with resources allocated for mortgage financing by commercial banks exceeding crediting of incomplete construction three-fold,” he stressed.
The government only funded establishment of the National Mortgage Company (UCO) (AMD12bn) and Apartments for Youth (AMD 3bn), the Prime Minister said.
