ARTSVIK MINASYAN: PREMIER PARALYZED ECONOMY

news.am
Nov 13 2009
Armenia

The 2010 draft budget is not in line with the Government-announced
anti-crisis measures, Artsvik Minasyan, a Parliament member of the
Armenian Revolutionary Federation (ARF), told reporters.

The budget "lacks a strategy", lower GDP, a 30% decrease in transfers
and an unfavorable export situation being evidence thereof, he said.

According to Minasyan, the budgeted 2.8% inflation rate is unrealistic,
and Armenia’s foreign debt – 41% of GDP – poses a threat in terms of
"right spending of funds" rather than in terms of the amount.

The situation would not be so grave if the country’s economy were
independent of the Central Bank of Armenia (CBA). Minasyan does not
rule out the Government’s "serious intervention" in the AMD exchange
rate next year – the Government may return to a fixed exchange rate.

"The Armenian economy was paralyzed after Tigran Sargsyan left the
post of CBA Chairman and was appointed Prime Minister," Minasyan said.

He stated that the Premier’s statement on the end of economic decline
is "untrue."