ARMENIA IS PRINCIPALLY AGREE TO ENTER IN RUBLE ZONE IN EXCHANGE FOR $1 BN STABILIZATION LOAN
Azerbaijan Business Center
Feb 4 2009
Azerbaijan
Baku, Fineko/abc.az. Armenia that has been in confrontation with
Azerbaijan for more than 20 years is principally agree to decline
from one of attributes of its nationhood – national currency.
The Armenian media report that at the end of January Armenia applied
to Russia for a stabilization loan for easing consequences of global
crisis. In exchange of up to $1 billion loan Russia proposed to agree
to enter ruble zone in the future.
Armenian sources indicate that a possibility of entering in ruble
zone by Armenia as payment for stabilization loan is actually under
consideration.
"In case Russia insists on that the matter will be covered at the
National Assembly (parliament) of Armenia," claimed Vardan Ayvazyan,
the head of the Permanent Commission for Economic Affairs.
Simultaneously he considers that Russia and Armenia are strategic
partners and allocation of finances to Armenia promotes to increase
of Russia’s political influence in the republic.
"It is still difficult to call amount of the expected loan, but Russia
will most likely to agree to disburse it. In any case the decision
whether to enter in ruble zone or not will be made by the Armenian
people," Ayvazyan said.
In case of favorable outcome Armenia is going to become the second
country of the world from which Russia received consent to enter
in ruble area after Belarus with which Moscow is building (however,
without apparent success) a federated state.
At the same time the loan negotiations with Armenia can be frustrated
as earlier Russia failed to obtain successful result in talks with
Iceland.
According to finance minister Tigran Davtyan of Armenia, this country
is negotiating both in multilateral and bilateral format with its main
trade-economic and financial partners, including World Bank Group,
and other international institutions, about extension of loans for
support of Armenian economy in period of global financial crisis.