PRESIDENT OF COUNTRY SHOULD NOT HAVE A BUSINESS, HRANT BAGRATIAN SAYS

YEREVAN, DECEMBER 22, NOYAN TAPAN. "I hope that Kocharian’s power will
not have its continuation after the presidential elections," the former
Armenian prime minister Hrant Bagratian stated at the December 21 press
conference. He characterized the current situation in Armenia as a
complex one because the concentration of wealth has gone the limit, and
17% of the country’s GDP is managed by two persons: Robert Kocharian
and Serge Sragsian. "The president and the prime minister of this kind
cannot be neutral managers. Today the banking sector and huge part of
imports are in the hands of the president, who also plays a serious
role in the mining industry and construction," H. Bagratian said.

In his opinion, if S. Sargsian becomes the president, his business
rather than the country will develop. "The country’s president may not
have a business, and if he has one, he cannot be a good, neutral
manager. Whereas, today he is the biggest businessman," the former
prime minister said.

According to him, the current authorities are accusing the former ones,
whereas big enterprises have been privatized under the current
authorities as well. For example, the Zangezur copper and molybdenum
enterprise was sold for only 132 million dollars, which is equal to 6
months’ profit of this enterprise. Meanwhile, the growth of molybdenum
prices have exceeded several times the oil price growth. The new owners
have been given 3 years to pay this sum. H. Bagratian added that
Haysavingsbank and Ardshininvest Bank have been sold in the same way.

In the words of H. Bagratian, there is no real economy in the country
because the production volumes are lower than in 1997. He said that
such a country cannot be competitive and have a future.

The former prime minister noted that only 4-5% growth has been
registered in Armenia as compared with 40% growth of Azerbaijan’s
economy, whereas a completely different index should have been
registered in Armenia. Today the 2008 state budget of 2.5 billion
dollars is spoken about, which is more by only 180 billion drams as
compared with 2007’s budget. By estimate of H. Bagratian, the
programmed growth is completely conditioned by transfers of 700-800
million dollars from abroad. "There will be additional demand of
700-800 million dollars, goods of this amount will be imported, the
president and the prime minister will strengthen their importing
structures even more, while the Central Bank of Armenia will again
reduce the rate of the US dollar a bit so that the profit will
increase," he underlined.

In his words, if the degree of the economy’s independence declines or
there is a war, we "will be in a worse situation". Therefore, according
to him, Armenia’s chances to win the war will be much lower.