Yerevan /Mediamax/. Armenian government made a decision to provide state guarantees to developers at the volume of 20bln AMD (about $54mln).

Mediamax reports that Armenian Prime Minister Tigran Sargsian said this at the session of the government today. According to him, this step will give developers the opportunity to attract credit means from commercial banks and complete the unfinished objects.

The Prime Minister noted that banks enjoy sufficient liquidity and have accumulated enough resources, and the only deterrent in crediting is the evaluation of risks. “The state cannot but involve and take upon itself a part of the risks”, the Prime Minister stressed.

Tigran Sargsian stated that from today on, developer companies may turn to the operative staff of the government and provide the necessary documents, the list of which will be placed at the official website of the government.

The Prime Minister informed that there were preliminary discussions held with banks, as a result of which both sides positively assessed the government’s proposal.

Tigran Sargsian stated that priority will be given to objects, the construction of which is already realized for 70%. The real estate, free of other liabilities, will become security for the credit.

The government assesses this step as a crisis preventive measure, which will allow stirring up the sphere of real estate and mortgage crediting. Tigran Sargsian stated that today that Central Bank will announce the establishment of a Mortgage Fund, which will aim at developing the secondary market and meeting solvent demand in real estate market.