“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.

T.P.