FINANCIAL CRISIS AND ARMENIA

On March 12 analytical centre “Arantsq” arranged discussion on the following topic: “World crisis and economic security of Armenia”. The economist, Professor Tatul Manaseryan, the member of the National Assembly from ARFD group Ara Nranyan, the representatives of the Central bank: the head of the department of monetary policy Artur Stepanyan and the head of the department of financial system policy and analysis Vahe Vardanyan participated in the discussion.

According to the economic analysis, if the external debt of a country overshoots allowable limits then serious threats of economic security may arise. To what extent is our country insured in the context of economic security? According to the member of the NA from ARFD group Ara Nranyan the existence of a definite external debt, of coarse, threatens to economic security of the country, but this reality, which is imposed by the economic crisis, puts in the forefront other problems. Nranyan thinks that the measures taken today to meet the crisis and the engaging of the credit funds are the basic requirements for the solution of the problems facing the economy. In the opinion of the NA member, the engaging of the financial means is extremely necessary in the context of changing economic policy. “We would rather engage those means and, thus, we can prepare the serious background to secure economic progress, than regard ourselves self-sufficient and be afraid of other actions”. Nranyan mentioned, that the credits supplied to Armenia by international organizations (IMF, WB) witness that Armenia is rather conscientious in the issue of discharge of obligations. In his opinion one should be afraid not of external debt but of the poverty and non-developing economy. “If we use the debts we have efficiently, then in 3-4 months those sums will return to active economy, will reflect in the budget and everyday life of the citizens”.

In accordance with the head of the department of financial system policy and analysis of the Central Bank Vahe Vardanyan, economic security conditioned the fact that the government of Armenia took the credit supply road, because that was the only way to boost economy. The head of the department of monetary policy Artur Stepanyan, in his turn, noticed that there were no countries without external debts in the world. “It is very important on what terms the credits are supplied, on what interest rates and maturity period. I would like to say that all the debts that our country have to the WB, the RF and the IMF are preferential and long-term credits”. Economist T.Manaseryan noticed that the IMF credit had been granted for a term of 5 years and this could not be regarded as a long-tern credit at all. “If last year our external debt was $1 billion, then today it exceeds $3 billion. What is it if not a threat to economic security, the dependence on international institutions?” “International financial giants, i.e. the World Bank and the International Monetary Fund, have already lost their authority. There is no country where those institutions implemented programmes, which proved positive results and targeted the development of the industry. Hence the question arises if it is necessary to follow blindly their proposals and demands?” – noticed T.Manaseryan. The economist is sure that if we manage correctly our resources, we will have no necessity to “reach out our hands and ask for credits, because we have enough potential to overcome such a situation”.

T.Manaseryan underlined the importance of creating of All-Armenian bank – the institution, which can promote to the implementation of all-Armenian programmes. “All-Armenian bank will lead Armenia out of world economic crisis and will release us from sad prospects to stooge for international financial structures”.