OPPOSITION CONSIDERS THAT ARMENIA WILL FEEL CRISIS CONSEQUENCES IN 1-1.5 MONTHS

NOYAN TAPAN

Dec 22, 2008
YEREVAN

The consequences of the economic crisis for Armenia will be very hard,
and country’s common citizens will feel the economic problems already
in 1-1.5 months. Vahagn Khachatrian, the former Yerevan Mayor, stated
at the December 21 Armenian National Congress conference. He also
said thaat budget revenues from VAT will be also reduced.

According to him, fund allocation under the Millennium Challenge
program has been already suspended. He said that instead of real
programs on small and medium-sized business assistance, the authorities
act by administrative methods trying to get tax collection by all
means, which leads to stopping of economic activity of many small and
medium-sized enterprises. Besides, the authorities very much hope for
foreign financial support and ask various countries and international
organizations for sums of 50m, 200m, and even 1bn USD.

In V. Khachatrian’s opinion, for coming out of the formed situation
the government should have presented the respective program in
consideration of the domestic resources. Economy of resources and
optimalization of expenditures should be that program’s component.

Analysing the financial-economic crisis world tendencies, the former
Prime Minister and leader of the Freedom party Hrant Bagratian
characterized the situation in world economy by the following
phrase: "Economy has fallen a prey to bank terror." According to
his estimation, this year capital export from Armenia will amount to
nearly 1bn USD. Meanwhile transfers reduction from abroad await the
country. He also mentioned the high dependence of Armenia’s economy
on non-ferrous metals export and energy carriers import.

H. Bagratian also pointed out to the necessity to stop talks about
closing the Armenian NPP until a new ANPP is built. "Armenia should
remain a country with atomic energy," H. Bagratian said.