CBA DEPUTY CHAIRMAN FORECASTS ECONOMIC STABILIZATION IN ARMENIA BY END-2010

/ARKA/
July 9, 2009
YEREVAN

YEREVAN, July 9. /ARKA/. Armenia’s economic situation is likely to
stabilize by end-2010, Deputy Chairman of the Central Bank of Armenia
(CBA) Vache Gabrielyan said on Thursday at an international conference
on the global crisis impact on Armenia.

"In early 2010, Armenia’s economy will show signs of recovery and
the country will post a slight upturn by end-2011," he was quoted
as saying.

The CBA chairman stressed Russia’s direct influence on the Armenian
economy, with Russian remittances having the lion’s share in foreign
remittances to Armenia. "It is natural that all downturns in Russia’s
market will leave their impact on Armenia’s economy," Gabrielyan added.

According to the CBA monthly review, some $267.6mln was transferred
from Russia to individuals in Armenia between January and May 2009 –
a 36.6% ($422.2mln) drop compared to the same period last year.

During the period under review, Armenian remittances to Russia dropped
26.3% year-on-year to $34.4mln, compared to $46.6mln in the same
period last year.

As a result, new inflow of Russian remittances dropped 37.9% between
January and May 2009.

Gabrielyan stressed the importance of labor market diversification,
adding the construction sector comprises the lion’s share of GDP
in Armenia.

"Diversification of20services and labor market will enable Armenia
acquire new business partners and alleviate the impact of the global
economic crisis," the CBA deputy chairman said.

According to Gabrielyan, unlike Russia, Armenia has avoided a major
tailspin in the banking sector.

He pointed our that the flexible monetary and credit policy of
the Armenian government helps the country react to global economic
developments.

From: Emil Lazarian | Ararat NewsPress