ARMENIAN GOVERNMENT DOES NOT WANT TO FOLLOW EXAMPLE OF U.S. ADMINISTRATION

Noyan Tapan
March 18, 2009

YEREVAN, MARCH 18, NOYAN TAPAN. The sums provided by the World Bank
and other international financial organizations more contribute to
enrichment of Armenian banks than to development of small and medium
enterprises, member of "Orinats Yerkir" faction Artsruni Aghajanian
said at the National Assembly on March 18. He called on the government
to give credits to enterprises without participation of banks, thus
ensuring low interest rates of credits.

The minister of finance Tigran Davtian said that under conditions of
the global financial and economic crisis, the rapid response staff set
up at the government provides financial resources to some enterprises,
but it is possible only in exceptional cases. On the whole, according
to the minister, the provision of loans to small and medium enterprises
is outside the government’s competence: like in other countries, it
is done through the banking system. As regards the fact that banks
provide at high interest rates the credits they have received on
preferential conditions, the minister noted that their actions are
justified, taking into account the risks proceeding from the economic
situation in the country.

Disagreeing with the minister’s arguments, the NA deputy reminded
that the U.S. administration allocated 800 billion USD to prevent
the consequences of the crisis.