Aristomene Varoudakis: Armenian Economy Is Stabilizing But The Crisi

ARISTOMENE VAROUDAKIS: ARMENIAN ECONOMY IS STABILIZING BUT THE CRISIS IS NOT OVER
Siranush Muradyan

"Radiolur"
26.02.2010 17:58

Diversification of Armenian economy is necessary in order to stir it
up, Head of Yerevan Office of World Bank (WB) Aristomene Varoudakis
told a press conference today.

According to him, the government is already realizing the corresponding
steps, in particular, on developing tourism and healthcare.

"The World Bank welcomes the steps of the government; however more
resolute steps are necessary, which will lead to eradication of
oligopoly," Aristomene Varoudakis stated.

Speaking about the 2.2% economic growth registered in January, the
head of WB Yerevan office noted that it speaks about the stabilization
of Armenian economy, but it does not mean that the crisis is over. He
stressed that the Armenian economy needs 3-4 years to return to the
level of 2008. According to him, WB forecasts economic growth in
Armenia following the results of 2010 at the volume of 2%.

Touching upon the level of Armenia’s state debt as compared to GDP,
Aristomene Varoudakis noted that following the results of 2010 it will
make about 50% of GDP. According to him, this is not a dangerous index,
since the majority of loans are provided for the term of 25 years with
the period of grace of 10 years. He believes that the most important
is to improve the process of collecting taxes by the time we have to
repay the loans.

Touching upon the possible opening of Armenian-Turkish border,
Aristomene Varoudakis noted that "it will open significant
opportunities not only for Armenia, but also for the entire South
Caucasus region." According to him, WB supports any initiative,
which contributes to interborder trade.

"This will attach an impulse to diversification of Armenian economy,
will reduce transport expenses, and will increase the competitiveness
of Armenian goods", Aristomene Varoudakis stated.