ROBERT KOCHARYAN CRITICIZES ECONOMIC POLICY

News.am
March 23 2010
Armenia

True, economic crises take place from time to time.

One should be mindful of and prepare for that during good years. But
not by restraining economic development but by accumulating reserves,
cutting the state debt and budget deficit, diversifying trade and
so on. And that’s what we did," former RA President Robert Kocharyan
said in an exclusive interview with Mediamax news agency.

According to him, in 1998-2008 under his presidency GDP/external debt
ratio reduced from 46% to 13%.

He also noted that budget deficit was less than 2% within last
years of his presidency, whereas average annual inflation made 2-4%
with economic growth of 12-13%. Simultaneously, budget financing in
2007 made only 7% of capital construction. Gold stock was constantly
renewed. In 2008 clear balance of finance ministry totaled AMD 100 bn.

"Ideal macroeconomic situation proves that country spent less than
earned, saving part of its funds ‘for a rainy day’," he underlined.

Kocharyan considers that this opportunity enabled new RA authorities
to spend savings and obtain new credits for the implementation of
anti-crisis programs. "Imagine what the government had to do in case
external debt would total say 40% of GDP instead of 13% before the
crisis. Naturally, no one would allocate Armenia such funds as it
could inevitably lead to default," he added.

Former President considers possible to prevent recession in
construction sector, stressing that it is necessary to consolidate
efforts to maintain housing demand. "I think the government now
understands that. It was extremely important to start that in advance,
when crisis was only beginning to move towards Armenia," Kocharyan
emphasized.