You know, in general you try to avoid the obvious solutions thinking that there are hidden concequences, but many countries do this, the US and many other countries are doing it. The government is providing low interest loans to boost the economy. If Russia gave Armenia 500 million dollars, with very low interest long term loan, doesn't it make sense to use part of that money to directly revive the economy? a better economy means better taxes, and better revenue for the government... Buying homes is also very important for the survival of the country, qualified couples will stay in Armenia if they own a house and it will be less likely for them to immigrate.... And when construction rebounds start thinking how to revive the other sectors (especially industries and exports) so Armenia is not dependent only on construction....

Hi Spurktsi! I agree with you completely. You are completely right. A 5% interest rate, with a small downpayment (the buyer needs to invest something), will definately turn the economy around. Construction will continue, and there will be jobs for thousands. Homes for the people that qualify. A Win, win situation for everyone and the overall economy. Bravo!

8-10% interest rate and 30% down payment? this is outrageous. No wonder why so many apartments are vacant in Yerevan.... A big part of the recent downturn was due to a slow down in construction, if Russia/EU gave Armenia 100s of millions of dollars to tackle the problem, wouldn't it make sense if they allocated 50 million dollars for housing? That will buy thousands of apartments... there should be no down payment, and 4-5% interest rate, this is considered a good deal... people will be able to buy houses, construction projects will continue (50 million dollars should be allocated yearly) and together the whole economy will revive...