NEGATIVE CONSEQUENCES OF RISE IN GAS PRICE MAY BE MITIGATED ONLY BY RESOURCES OF STATE FINANCIAL SYSTEM, ECONOMIST VARDAN BOSTANJIAN SAYS
Noyan Tapan
April 17, 2008
YEREVAN, APRIL 17, NOYAN TAPAN. Prices will go up in many sectors
due to the rise in the gas price, and Armenia has no other resources
of mitigating the negative consequences, except for resources of
the state financial system, economist Vardan Bostanjian, member of
the National Assembly "Prosperous Armenia Party" faction, expressed
an opinion at the April 17 press conference. According to him, the
Armenian government has developed a set of measures, by which an
attempt will be made to mitigate as much as possible the consequences
of the rise in the gas price, especially for the vulnerable groups of
the population. 1.2 bln drams (about 3.87 mln USD) will be allocated
from the state budget for this purpose. Besides, it was officially
announced that the electricity tariff will not change by late 2008,
which will also reduce the consequences of the growth of the gas
price. V. Bostanjian advised gas users to "establish a saving mode
of consumption", a mechanism of "restrained use".
The economist said that a lot of factors affect price fluctuations in
Armenia, including such factors as the situation in global markets,
the absence of resources of strategic nature in Armenia, as well as the
geopolitical location of our country. However, in his words, "there
are some factors that allow to take certain measures". He pointed
out such factors affecting the fluctuation of prices as the absence
of wholesale markets, the existence of monopolies and shadow economy.
V. Bostanjian said that the president Serge Sargsian has inherited
from his predecessor Robert Kocharian "an economy which is not in so
terrible a state, and there are opportunities to improve its state
currently and continuously".