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Official News

Wednesday, 18 February 2009

RA Prime Minister Tigran Sargsyan called a consultative meeting with the representatives of such private building companies which act as both contractors and investors. In attendance were the ministers of finance and urban development, the mayor of Yerevan, the head of the State Revenue Committee by the Government.

The meeting tried to assess the resources available in this field, discussed the possibilities for investment and public-private sector cooperation amidst today’s global financial and economic crisis.

Describing the purpose of the meeting, the Prime Minister indicated that construction has been a driving force behind the recent years’ economic growth. Most of the building projects were realized through private resources, with the bulk of them having been contributed by foreign partners. “Your findings and estimates are important as they will help us forecast financial flows and outline growth scenarios for the next couple of years. You are well aware of the overall state of affaires on the building market, including the home and foreign demand levels,” Tigran Sargsyan said and proposed those in attendance to submit suggestions and recommendations regarding the modalities for growth-oriented and crisis-countering State backing of building entities.

Welcoming the government’s openness to dialog with the representatives of various sectors and the Cabinet’s readiness for support and cooperation, the meeting participants voiced their concerns and problems faced due to the global economic downturn, with the bulk of them relating to lending policies and those unrealistic and exaggerated predictions of a drastic fall in housing prices which were said to undermine the market situation.

Summarizing the meeting, the Prime Minister underscored that mortgage market development is a priority task as it will help address the existing bottlenecks. The completion of State-administered construction projects was said to be another priority inclusive of the disaster zone’s housing projects. The Prime Minister suggested considering the possibility for eventual public-private sector cooperation in this field. Tigran Sargsyan also proposed that engineering companies should collaborate closely with the Central Bank of Armenia and come together for another such discussion as soon as a corresponding concept note is prepared by the CBA.
 

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