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GLOBAL CRISIS TO IMPACT MONEY TRANSFERS, MORTGAGE MARKET AND MINING INDUSTRY IN ARMENIA
ARKA
Feb 5, 2009
YEREVAN, February 5. /ARKA/. The global financial and economic crisis
will impact money transfers, mortgage market and mining industry in
Armenia, Vardan Atoyan, assistant to the deputy finance minister,
said Wednesday at a seminar focused on the global crisis.
He said that private money transfers in Armenia are estimated at $1
to 2 billion, of which $600 million is transferred through banks.
"These transfers are mainly sent here from Armenians working in
construction and trade in Russia. It is known that these sectors
are now paralyzed there. That is why many our compatriots may lose
their jobs", Atoyan said adding that many Armenian citizens working
in trade sector face this threat because of the restrictions imposed
by Russian government on employment of foreigners.
National Statistical Service of Armenia says that $1489.2 million
was transferred in Jan/Nov 2008 to individuals in Armenia for
non-commercial purposes.
This amount is 26.2% or by $309.1 million greater than that of the
same period of the previous year.
The most intensive flows came from Russia and the United
States. Transfers sent from these countries in Jan/Nov 2008 made 91.6%
of total transfers received in Armenia over that period. Transfers
sent over the same period a year earlier made 95% of total transfers.
Speaking about mortgage market, th e assistant to deputy minister
said that Armenian banks have stopped extending mortgage loans,
and the extension business crediting is also under threat of stoppage.
"We think the main cause is cash shortage in banks", he said.
Atoyan said that precipitous fall in prices for metals on world
markets strikes hard at Armenia's mining industry, since the major
part of its output is exported.
"Alaverdi, Kajaran and Agarak copper and molybdenum combines and Kapan
mining combine faced grave financial problems. Their administrations
resorted to job cuts and wage lowering and caused additional damage
to economies in these job-starving border areas", he said.
Atoyan said that tourism that rallied recently in Armenia will be
affected by the global crisis as well.
ARKA
Feb 5, 2009
YEREVAN, February 5. /ARKA/. The global financial and economic crisis
will impact money transfers, mortgage market and mining industry in
Armenia, Vardan Atoyan, assistant to the deputy finance minister,
said Wednesday at a seminar focused on the global crisis.
He said that private money transfers in Armenia are estimated at $1
to 2 billion, of which $600 million is transferred through banks.
"These transfers are mainly sent here from Armenians working in
construction and trade in Russia. It is known that these sectors
are now paralyzed there. That is why many our compatriots may lose
their jobs", Atoyan said adding that many Armenian citizens working
in trade sector face this threat because of the restrictions imposed
by Russian government on employment of foreigners.
National Statistical Service of Armenia says that $1489.2 million
was transferred in Jan/Nov 2008 to individuals in Armenia for
non-commercial purposes.
This amount is 26.2% or by $309.1 million greater than that of the
same period of the previous year.
The most intensive flows came from Russia and the United
States. Transfers sent from these countries in Jan/Nov 2008 made 91.6%
of total transfers received in Armenia over that period. Transfers
sent over the same period a year earlier made 95% of total transfers.
Speaking about mortgage market, th e assistant to deputy minister
said that Armenian banks have stopped extending mortgage loans,
and the extension business crediting is also under threat of stoppage.
"We think the main cause is cash shortage in banks", he said.
Atoyan said that precipitous fall in prices for metals on world
markets strikes hard at Armenia's mining industry, since the major
part of its output is exported.
"Alaverdi, Kajaran and Agarak copper and molybdenum combines and Kapan
mining combine faced grave financial problems. Their administrations
resorted to job cuts and wage lowering and caused additional damage
to economies in these job-starving border areas", he said.
Atoyan said that tourism that rallied recently in Armenia will be
affected by the global crisis as well.