Yerevan /Mediamax/. Budget guarantees for developers have contributed to revival of Armenia’s construction sector, Assistant to the Armenian Prime Minister David Harutyunyan stated today.

Mediamax reports that, speaking at a news conference in Yerevan today, David Harutyunyan stated that the construction sector, the decline in which in the first half of the year exceeded 50%, has been demonstrating growth over the recent months.

“In May, as compared to April, growth in construction sphere made 88%, and in June, as compared to May, growth made 130%, in July, as compared to June – 4.5%”, David Harutyunyan stated, reminding that the program on providing governmental guarantees for completing construction of residential multi-flat buildings, realized within the framework of crisis prevention measures of the government, started on April 14, 2009.

David Harutyunyan informed that the government has already provided governmental guarantees against the pledge of the real estate in process of construction at the sum of $12mln to six developers, adding that at present the government discusses two more applications from developers for receiving governmental guarantees at the sum of $5mln.

David Harutyunyan stated the readiness of government to provide governmental guarantees at the sum of 20bln AMD (about $53mln) to developers, the level of construction completeness of which makes at least 50%, and which will present the consent of the bank to issue a loan given budget guarantee.

Talking about stimulation of demand for real estate by the government, Assistant to the Prime Minister informed that the recently founded “National Hypothec Company” has already refinanced about 30 mortgage loans with the total cost of 150mln AMD, adding that in September the Company intends to refinance 60 more mortgage loans with the total cost of 300mln AMD.