DRAM’S APPRECIATION LEADS TO IMPOVERISHMEMT OF THOUSANDS OF PEOPLE AND ENRICHMENT OF A FEW, OYP FACTION MEMBER SAYS
Noyan Tapan
Jun 14 2006
YEREVAN, JUNE 14, NOYAN TAPAN. The current trends in development of
the Armenian economy pose a threat to the country’s future. Member of
the RA National Assembly Orinats Yerkir Party (OYP) Mher Shahgaldian
made this statement in the parliament on June 13. In his words, "if
such appreciation of the Armenian dram continues under conditions of
half-finished reforms, a surface fight against corruption (sometimes
an imitation of it), strengthening of banks, elite construction,
small and medium business choking under the burden of taxation, and
the economy’s oligarchization, our economy will be brought to a state
of stagnation in a few years."
He considered it quite strange that the Armenian dram is appreciating
against both the dollar and the euro, which is not consistent with
international trends: the dollar is depreciating against all other
currencies in the world.
According to the deputy, a significant part of the Armenian
citizens make their daily bread thanks to remittances from relatives
abroad. "Their relatives send a small sum of money, and the current
appreciation of the dram hits their pockets," M. Shahgaldian said.
According to him, the dram’s appreciation also causes a decline
in exports.
He said that today Armenia’s imports exceed exports by more than
50%, which results in bankruptcy of producers who either close their
enterprises or have to operate in the shadow sector. "Oligarchization
of the economy is taking place. These trends lead to impoverishment
of thousands of people and enrichment of a few," the OYP faction
member stated.