The question, may be, doesn't need any comment. Just mention high interest rates of mortgage lending in Armenia (12%-18%). They are slightly lower than in Russia, for example, but much higher than in developed countries. The unpopularity of mortgage lending in Armenia is mainly due to high interest rates and low legal income of the population. So, some people don't have sufficient income to obtain mortgage, and others (even having money) don't like to take it because of high interest rates. It turns out that many people need houses, but only few can afford mortgage loan. The role of governmental regulations and promotions must be very high, and first tentative steps have already been taken for young families in Armenia. Low-interest mortgage must be the policy of the State and should be used as means of retention and attraction of young generation for building a future of State. This is very relevant today! If you have already bought an apartment or house through a mortgage loan, please, share your opinion with our readers, how difficult it was to overcome mortgage obligations and what would you recommend people wishing to buy property in this way?

We think these are just two main reasons which are enough to completely exclude the VAT from this market. 1. With the current lamentable condition of housing in Armenia (especially in Yerevan), where about 80% of the buildings are in a state of increased risk of destruction from possible strong earthquake, probability of which is quite high for today. Of course, there is a need to replace old, not earthquake-proof buildings to new, earthquake-resistant ones, at a maximum possible low price. Besides other measures, the step to reduce indirect taxes (VAT) could quite significantly shrink the cost of housing construction, and thereby reduce the bar for possible home acquisition. 2. The second major problem relates to the legal development of small and medium companies in construction field. The problem is, that construction companies (especially licensed, as by Armenian VAT law while obtaining construction license companies automatically become VAT payers) can not conclude legal and complete contracts for construction and renovation works for private housing, because legal contracts increase the construction cost almost by 50% (including VAT, social payments, income taxes an so on) compared with the costs of "shadow work force" illegally and freely operates in this market without paying any taxes. The current reality, of course, puts licensed companies in one field of unequal competition with the shadow construction market, and does not allow creating normal conditions for the legal development and prosperity of companies, as well as implementing qualified construction. The result is; today the huge part of this market is in shadow economy, companies can not legally develop, the quality of work done is rather poor, while State Budget doesn't get lots of money. And who benefits? Today, our goal is to seek our readers' opinions, either through a simple voting or your comments. Given the fact that shadow economy in housing construction and renovation different extent exists in many countries, even in well developed ones, it is also interesting to find out opinions and to receive comments from all over the world to know the situation regarding to the issue.

As we have already noted in the article on 20% VAT excluding, today almost the entire market of private home renovation, as well as the most part of home new construction is in shadow market; i.e. we build and renovate our houses, substantially increasing the volume of the shadow economy of our state. The problem is that legitimate contracts with licensed construction companies increase the cost of works by nearly 50%, which compels us to find a way to conduct works in shadow, and, moreover, with absolute impunity, despite the severity of "dormant" low... Shadow home construction and renovation activity is also lucrative to the people with illegal income, which is highly undesirable for them to show shadow incomes in legal contracts. As we see, shadow construction first of all is beneficial for the customer, because it reduces the cost of the work, but disadvantageous to the State, because it loses money in the form of taxes. But as building portal, we particularly wish to acknowledge the inability of small and medium construction companies legally prosper in such circumstances, when they are in unequal competition with shadow workforce. The State should seriously think over that problem and solve it as soon as possible, but through lowering tax burden solely for that market, as no other measures will give positive results. That is very important to realize! But until that happy day, we all, willy-nilly become criminals, as we seriously violate the low of our Republic. Please, all interested persons, leave your comments, both from Armenia and around the world, as we are sure that even in well-developed countries a problem like this partly exists.

If you are a civilized one, then, certainly, no! But don't give a negative answer, since it does not make you as such... In the existing situation of almost complete shadow home construction and renovation, when companies have to conduct works without legal Contracts with customers, it will be deficient to talk about satisfactory quality, even performing a highly qualified job (in case you are lucky). There are no guarantees for both parties; neither for payments and work quality nor for deadlines and so on! All the problems are being solved on the basis of personal mutual trust, or in best case- based on previous customers' recommendation. Talking about satisfactory quality in this market circumstances is uncivilized at least, until such situation is continuing.

As Bloomberg reported, South Korean companies expect to win record plant orders overseas this year. The total amount of contracts for the construction of power plants, floating production facilities and refineries can over $60 billion. About 72% of this works will be carried out in the Middle East. Thus, Korea Electric Power Corp. won the largest order so far this year, an $18.6 billion contract to build four nuclear reactors in the United Arab Emirates in late December, and Doosan Heavy Industries & Construction Co. received an order to build a 2,800-megawatt power plant in Saudi Arabia, worth $3.39 billion. We would like to remind, that this spring in the southern part of Yerevan, Armenia, South Korean company GS Engineering & Construction Corp. was completed 205 megawatt power plant costing $ 218mln.