WB: ARMENIA FACING THE GLOBAL CRISIS WITH STRONG DEFENSE LINES
Gita Elibekyan
"Radiolur"
04.03.2009 17:32
Yesterday, when the dollar was appreciating, and there was a rush
everywhere, especially in the shops, the World Bank said it welcomed
the decision of the authorities to let the dram float. There was an
impression that the World Bank welcomed all the consequences of the
decision we witnessed yesterday.
Is the World Bank worried that it may also be accused of all these
disasters? In response to the question, Head of the WB Yerevan Office,
Aristomene Varoudakis said: "The World Bank has been represented in
Armenia for over 15 years, and has always been a reliable partner. He
noted that they fully support the return to a flexible exchange rate
regime, since it is the best decision for a country with a small and
open economy like Armenia."
According to Aristomene Varoudakis, the flexibility of the currency
will help Armenian companies compete more successfully in global and
domestic markets and will pave the way for high and sustainable growth.
He stressed the necessity of strengthening safety nets to mitigate
the impact of the crisis and the expected temporary increase in prices
on the poor
The appreciation of the dollar was immediately followed by raise
of prices.
The World Bank representative found it hard to say to what extent
it was grounded. Neither did he predict w hat would happen on the
Armenian market and how much the dram could depreciate. He simply
advised to be watchful.
According to Mr. Varoudakis, Armenia is facing the global crisis
with strong defense lines thanks to prudent macroeconomic management,
a low level of public debt and a sound banking system.