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Premier: Additional Cash Injections In Armenia's Construction Sector

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  • Premier: Additional Cash Injections In Armenia's Construction Sector

    PREMIER: ADDITIONAL CASH INJECTIONS IN ARMENIA'S CONSTRUCTION SECTOR CAN MITIGATE ADVERSE IMPACT OF GLOBAL CRISIS

    /ARKA/
    July 1, 2009
    YEREVAN

    YEREVAN, July 1. /ARKA/. Additional cash injections in Armenia's
    construction sector will mitigate adverse impact of the global crisis
    on the country's economy, Armenian Prime Minister Tigran Sargsyan said
    Wednesday at the ceremony of credit agreement signing by European
    Bank for Reconstruction and Development and Elite Group, Armenian
    construction company.

    "Important is that EBRD believes that construction programs will
    be successful and keeps crediting them despite adverse impact of
    the crisis.

    Credits will help us to mitigate consequences of the crisis", he said.

    Under the agreement, European Bank for Reconstruction and Development
    lends $5.5 million to Elite Group and provides â~B¬130,000 in grant
    to encourage energy-saving innovations.

    Sargsyan stressed the importance of the agreement saying it is
    significant for several reasons.

    First, this is the bank's second cash injection in Armenian economy.

    Earlier, the EBRD extended unprecedented credit to Armenia's energy
    sector.

    The premier said that $5.5 million would be given to one of the
    largest construction companies in Armenia.

    On July 4, Armenian Government provided budget guarantee of 2.5 million
    to Elite Group to enable the company to complete construction of some
    buildings in Yerevan.

    Tigran Sargsyan attache s special importance to governmental programs
    in construction area, since construction sector's share in GDP is
    greatest, and construction sluggishness affects all the sectors of
    the national economy.

    In his words, Armenian Government makes every effort to pump funds
    into construction.

    He said that the government must do whatever necessary to attract
    funds.

    "Important is to restore private sector's confidence in construction",
    the premier said.

    National Statistical Service of Armenia says 15.7% economic decline
    was recorded in the country in Jan-May 2009, compared with the same
    period of the previous year.

    According to the statistical report, GDP in current prices amounted
    to AMD 839356.6 million in Jan-May 2009, and GDP index-deflator was
    101.4%, compared with the same period a year earlier.

    Armenian construction sector's 56.6% decline in Jan-May 2009 drove
    GDP 10.3 percentage points down, while at the same period of 2008,
    construction added 2.9 points to GDP.

    The sector's share in GDP was 10.8% in Jan-May 2009.
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