ARMENIAN PUBLIC SECTOR WAGES TO BE FROZEN UNTIL 2013: MINISTER

/ARKA/
April 22, 2010
YEREVAN

YEREVAN, April 22, /ARKA/. Armenian finance minister Tigran Davtian
said today the government has developed a three-year mid-term spending
program that calls for suspension of public sector salaries rise up
to 2013.

Addressing Cabinet members he said public sector wages funds will not
change until then. He said the government will also freeze spending
on purchase of equipment and property. Tigran Davtian said this
is the conservative scenario that may be revised in future. Prime
minister Tigran Sarkisian said the measures are aimed at reducing
budget deficit.

"In 2009 we increased our budget deficit bringing it to 7.7% of the
GDP, now we have to reduce it. This means that we must cut on budget
spending to reduce the deficit to 3% of the GDP,’ he said.

The prime minister described this scenario as ‘extremely cautious,’
saying if the current macroeconomic trends are maintained the
government may reconsider its mid-term spending program. -0-