ARMENIAN GOVERNMENT GETTING READY TO FIGHT FRESH WAVE OF GLOBAL CRISIS

ARKA
Dec 3, 2008

YEREVAN, December 3. /ARKA/. Armenia’s Government is undertaking
meaningful steps to fight the second wave of the global financial
crisis, RA Minister of Finance Tigran Davtyan told today the RA
Parliament.

"The two stages of the crisis are the financial downturn and economic
recession," the minister said, adding Armenia was able to avoid the
first wave of the crisis.

According to the minister, the global financial tailspin had little
influence on Armenia’s isolated and small financial system. Davtyan
emphasized the RA government’s harsh financial policy in the past
years, saying it shielded the country’s economy from the global crisis.

The minister said it is the beginning of the global financial
recession, adding it is impossible to say how long it will last and
what possible impact it will have on Armenia’s economy.

"The Armenian government is taking serious steps to respond to the
fresh wave of the crisis," the minister said.

As a precaution, the RA Government has decided to assign $50mln for
small- and-medium-sized businesses. Local businessmen will be able
to use the money soon, according to Davtyan.

"We are negotiating with the World Bank over the issue, and tomorrow
our negotiations will enter a decisive stage," the minister said,
adding the Armenian government plans to ask WB to double its financial
assistance to the country in the coming four years. Thus, the WB
financial support to Armenia can reach $1bln.

According to Davtyan, the RA government will ask the RA Parliament
to allow it to show flexibility in offering state guarantees. There
is nothing for Armenia to worry about, Davtyan concluded.