ROBERT KOCHARIAN BELIEVES THAT ARMENIA CAN BYPASS NEGATIVE IMPACT OF
GLOBAL ECONOMIC RECESSION

YEREVAN, APRIL 5, NOYAN TAPAN. "If we view the Armenian economy by
taking the 2007 indices into account, the country is in a state of
sustainable development," the Armenian president Robert Kocharian said
when responding to the question: "In what level of development is the
economy that you are passing to the president elect Serge Sargsian?"

According to R. Kocharian, out of economic indices of 2008, a decline
was registered only in trade of March, which is "natural and related to
the internal political situation. However, it is obvious that all this
is being overcome."

"I do not doubt that we have the opportunity to end this year with
serious indices," the president said. He proposed taking into account
the fact that by forecasts, the global economy is in a recession. "It
may have a negative impact on Armenia’s economic development rates but
I am sure that even under these conditions we can conduct such a policy
that Armenia will bypass the negative impact of the global economic
recession," he said.

In his words, a global economic crisis or a strained internal political
situation have a more profound effect on those countries which have a
developed capital and securities markets because "it is much easier to
take panic steps" to leave these markets. He explained that the
Armenian securities market is underdeveloped, while the capital market
has not actually formed. Investments have mainly been made in the real
sector of the economy and there is no possibility to take them back,
which, for example, can be done by getting rid of securities. It was
mentioned that in such countries the impact of an international
economic crisis is reflected in trade, particularly, in trade of
durable consumer goods. "I think that those businessmen who will try,
so to speak, to insure themselves against riskiness, will lose, whereas
active participants in the markets will benefit," the Armenian
president explained, adding that he does not see any deep-laid problems
of Armenia’s economic development.