"WE SHALL HAVE A GREAT DEFICIT"
A1+
[01:51 pm] 22 October, 2008
Economist Bagrat Asatryan, ex President of the Central Bank, doesn’t
think the recent rise in prices is only determined by the rise in
prices at the international market.
"Even an ordinary consumer can notice this marked characteristic: the
prices regularly go up in Armenia. Surely, it is somehow resulted by
prices at the international market but we never react to the slumps at
the international market. Nothing changes in our country when prices
go down at the international market," Bagrat Asatryan said to A1+.
The economist notes that prices mainly shoot up after elections,
especially presidential ones. "It is notable that authorities usually
hold down prices during election campaigns to curb people’s wrath. They
imitate to care for people. But they show their true colours at
post-election periods when prices skyrocket all of a sudden," notes
Mr. Asatryan. "This oligarchic and monopolistic system pursues only
one goal – to double incomes under the auspices of authorities."
The CB ex president says the authorities had better act and find a
way to surmount the economic crisis.
"The other day I saw Serzh Sargsyan meet with the CB President
and give assignments. I am sorry to say that his behaviour
is inadmissible today. Maybe in the 60s it would work but not
nowadays. It also suggests that the given bodies have no notion of
their responsibilities. The Central Bank is an independent body,
meanwhile the President gives them assignments. I think in this case
we have nothing to be proud of."
With regard to the dollar-dram fluctuations the economist said :
"Unlike the previous years the exchange rate remained the same in
2008. Even the dram has devaluated a little."
"The balance of payments will be frustrated this year. The deficit
will mount to 3 milliards. Decrease of currency flow will result in
fluctuations of exchange rate, while the ongoing rise in prices will
bring about devaluation."