VALUATION OF DRAM AS FIRST IMPETUS FOR CRISIS

Panorama.am
16:15 13/07/2007

"Armenia suffers a Hollish Disease" announced AEPLAC Armenian Director
and economist Tigran Jrbashian today at "Pastark" club. To him, if the
country has a serious transferents inflation into the internal market,
economic development ,income rise and at the same time lacks those
institutions that turn that inflation into import with lower prices
or turn them into capital investments ,then there rises a situation
named hollish disease. "I believe that the valuation of dram is the
first impetus for the crisis that can happen if we don’t follow the
European model or don’t make second generation reforms", mentioned
Jrbashian adding that if those changes are not done quickly , Armenia
can face problems such as economic decline, lessening of industrial
quantities, unemployment rise and hiperinflation.

To the question as to which European model he would mark out AEPLAC
Armenian Director said that today educational reforms are of strategic
importance for the future of Armenia, as for having a developed
country one should have an educated generation first, while today’s
Armenia lacks qualified people.

Concerning the announcement by Central Bank President Tigran Sargsyan
that international transferents will rise up to 35 %, T.Jrbashian first
mentioned that valuation of dram for dollar is a normal process and
such judgements of its being artificially done by someone are wrong
taking into account that such an announcement by the CBA is also a
financial impetus.

"The central bank of any country included the USA state reserve once
a month evaluate the current economical state, make forecasts and
there is nothing bad in it", added Jrbashian.

"If the Central Bank Director doesn’t make an announcement about the
dram-credit policy ,the policy will become a closed system. Surely
that is an impetus, but the CBA should give that impetus on purpose",
expressed his opinion Mr. Jrbashian. That is quite another matter if
giving that impetus the CBA can’t give other impetuses for the other
branches of economics ,saying ,the situation will continue rules
doesn’t change in customs, tax, rivalry and monopoly regulation fields.