Decline of Armenian economy will make 7-12% in late 2009, Hrant
Bagratian says

YEREVAN, MAY 30, NOYAN TAPAN. The decline of Armenian economy will make
7-12% in late 2009. However, as the former prime minister of Armenia,
head of Freedom party Hrant Bagratian stated at the May 26 press
conference, new forecasts can be made and new corrections can be
probably be introduced in August.

In his words, the crisis in Armenia has now entered the second stage
which leads to a deep budgetary and banking crisis. He said that it is
not ruled out that the crisis in Armenia will have a fourth stage as
well. "This crisis has revealed the wrong policy conducted by the state
in the past 10 years," he noted.

As for the anti-crisis program of Armenian government, he said that the
government does not have any program as the budgetary allocations are
directed to where they are not necessary. "For example, 10 million
dollars was given to mining industry, but it is not known whom this
money was given to. Kajaran Copper and Molybdenum Enterprise that has
serious problems today is mentioned, but Robert Kocharian is behind
that enterprise," the former prime minister said.

H. Bagratian called the package of legislative tax amendments, which
became a subject of heated discussion at the National Assembly",
"absolute nonsense".

According to H. Bagratian, the decline of Russian economy is dependent
on oil prices. If oil price rises in Russia, then this country will
have a real opportunity to overcome the crisis, which in its turn will
result in regulation of the economic situation in Armenia. Besides, if
the anti-crisis program of the U.S. administration is successfully
completed in the summer, economic growth will be recorded in Russia in
6-9 months. "It means that there will be a positive change in Armenia
as well but it will take place in 2011-2012," H. Bagratian said.