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Unless the purchased apartment is put into operation, the apartment certificate is not provided, 75% of the amount paid for it should be frozen. The deputy of the Civil Contract Faction Gevorg Papoyan said this at the NA sitting while reporting the draft law on Making Amendments to the Civil Code of the Republic of Armenia on May 23.

“A situation has arisen when the RA citizens buy apartments, constructors and banks offer them conditions that contain risks. Let’s assume that the 4^th floor of a newly constructed building is still built, a person buys the right to buy an apartment on the 8^th floor. Under some circumstances the constructor’s financial condition may deteriorate significantly and the construction of the building may stop. It will turn out that the person has given the money for the right to purchase, but the building does not exist. The legislative initiative is aimed at avoiding such risks,” Gevorg Papoyan explained.

The deputy justified the reasons for the 75% he mentioned. “If the constructor’s financial situation worsens and he is no longer able to continue the construction, it will be possible to complete the construction through the 75% frozen bank accounts of the purchase contract holders.”

The deputy also noted that the above-mentioned 75% will be the deposit money in the bank the constructor will be able to use the interest amounts.

The member of the Standing Committee on Financial-Credit and Budgetary Affairs Narek Grigoryan made a related report.

“Let all the constructors forgive me: I will not feel so much pain if 3-4 constructors are left out of the market as a result of the adoption of the draft law, but I will feel bad if I see that 400-500 RA citizens are complaining to the Government that their apartments are not available,” the deputy said and stated that the draft was debated in the Committee and endorsed.

The deputy of the Civil Contract Faction Khachatur Sukiasyan also noted that permits for multi-apartment buildings are delayed, the chain slows down, which leads to an increase in prices. The deputy inquired whether this issue was debated in the Committee, in response to which Narek Grigoryan said that he also reaffirmed that the problem exists, but it was not debated in the Committee.

“We should ask and urge the Municipality to issue building permits quickly, so that apartment prices do not rise suddenly and quickly,” Narek Grigoryan said.

The co-rapporteur, the Minister of Economy Vahan Kerobyan mentioned in his turn that the draft law does not cause unnecessary risks in the field of development, it is balanced.