ARMENIAN PRIME MINISTER: INCREASE OF INTERNATIONAL PRICE FOR OIL ALLOWS US TO EXPECT FURTHER IMPROVEMENT IN RUSSIAN ECONOMY, WHICH WILL HAVE ITS POSITIVE EFFECT ON INFLOW OF TRANSFERS TO ARMENIA
ArmInfo
2009-07-29 11:52:00
ArmInfo. The increase of the international price for oil allows us
to expect further improvement in the Russian economy, which will have
its positive effect on the inflow of transfers to Armenia, said Prime
Minister of Armenia Tigran Sargsyan in an interview with bne magazine
(Business New Europe).
"Remittances from Armenians that live overseas is a major source
of revenue.
Nevertheless, the amount being sent home has fallen in the crisis to
AMD44bn [$122m] in the first quarter from over AMD180bn last year. Is
this a serious problem? The problem is serious to the extent that
remittances in the form of private transfers and factor income play
an important role for the Armenian economy. During the recent years,
private transfers and factor incomes averaged 13-14% of GDP and if
we take into account their equal redistribution in a society, we can
say that their multiplier effect on the economy is not small.
The net inflow from private transfers and factor income amounted
to $1.9bn in 2008, 16% of which, $311m, was received in the first
quarter of the year.
Concerning this year, non-commercial transfers by physical
entities through the banking sector decreased by 33.6% in net
terms in January-April compared to the same period of the last
year. Nevertheless, the increase of the international price for oil
allows us to expect further improvement in the Russian economy, which
will have its positive effect on the inflow of transfers to Armenia,"
the premier said.
Brent oil price, which is also a reference price for Russian
Urals origin oil, totaled nearly 45 dollars per barrel at London
InterContinental Exchange. Now it has reached nearly 68 dollars.