FINANCE MINISTRY: ARMENIA MANAGES TO SKIRT GLOBAL FINANCIAL CRISIS

ARKA
Dec 18, 2008

YEREVAN, December 18. /ARKA/. Armenia managed to prevent negative
effects from outside due to low integration and loose ties with
the world financial centers, Armenian Deputy Minister of Finance
Vardan Aramyan said at "Novosti" International Press Center during
Moscow-Yerevan-Kiev-Kishinev video-bridge on social responsibility
of states under the crisis circumstances.

No steep fluctuations in interest rates and problems with monetary
basis and liquidity have been recorded on the country’s financial
market, Aramyan said.

"Yet, we should be concerned over how events will be developing on
the world markets and what impact it may have on our economy," the
Deputy Minister said.

He pointed to possible signals of negative effects. One of these
signals is fall in prices for raw materials that may affect exports,
particularly in the field of metallurgy.

According to Aramyan, reduction in private transfers and slowdown of
the global economy is among other channels of possible negative impact.

If demand for products and services goes down, it will affect export
of Armenian goods and services, he said.

Reduction in inflow of direct investments due to the financial crisis
is another risk, Aramyan said.

According to him, total negative outcome depends on how events will
be developing in world markets, on the Russian and the U.S. market
s in particular.

Russian economy is of strategic importance to Armenia as about 80%
of private remittances are sent from the Russian Federation, the
Deputy Minister said.

"Signs of the world financial crisis are there, but we have to think
how to battle the negative effects further on," Aramyan said. N.V.