The Armenian National Congress has published an announcement concerning the economic crisis in Armenia and possible negative results. Please find the full text of the announcement below:
“The crisis in the republic is deepening day by day. It resulted in economic degradation in the last quarter of last year, reduction of production capacities in all fields, and danger threatening to the macroeconomic situation in the country. Instead of challenging the difficulties and preventing the negative results of the crisis the illegal administration is busy with demonstrating fake stability with actions supporting the crisis and degradation, which may bring to tragic results. Specifically, we mean the policy of targeted prevention of the national currency devaluation through direct intimidation on banks, including police control over currency exchange points. This policy is introduced as a policy of a mechanism of preventing inflation, while such policy in conditions of financial and economic crisis can become one of the main factors of economic default, as well as shows the real illegal purposes of such policy. Only during last year, in conditions of tense economic situation in the country, 20% of Armenia’s foreign currency reserves were thrown into the market. As a result of this fact the capacity of Armenia’s foreign currency reserve was cut down up to the dangerous limit. The same policy continues this year: during the twenty days of January over 100 mln dollar was sold out from the reserve fund.
Through artificial appreciation of Armenian Dram the administration:
a. Is stepping back from the principles of liberal economy and ignores the normal regulating role of currency;
b. Violates important obligations established by international documents, including the responsibility to implement a policy of floating rates established by the agreement with the IMF;
c. Embezzles the foreign currency reserves of the country, which may bring to tragic outcome for the economy;
d. Maintains high level of import capacities, which is very bad for the domestic economy;
e. Maintains high level of import capacities to serve for the interests of private importers and their monopolistic positions;
f. Impacts small and medium businesses, making domestic producers and exporters suffer.
Whereas prices are falling everywhere in the world as a result of the international crisis, it is nonsense to artificially appreciate the national currency for the purpose of preventing inflation. The criminal administration does not see their future and are busy with embezzling and they think that through keeping the entire wealth of the country in their pockets they may save their heads and even keep the power. Through artificial appreciation of dram under the cover of the policy targeted at preventing inflation the top leaders of the administration are embezzling the property of the people. For a number of people being on the top of the cleptocratic pyramid the world crisis is not a tragedy, which they have to fight, but a good moment and time to embezzle and grab as much as they can.
The Armenian national congress demands to:
-Immediately stop the embezzlement of the Armenian international currency reserve funds;
-Fulfill the international responsibilities, including follow the policy of floating rates, which is a responsibility established by the agreement with the international Monetary Fund;
-Provide independent operation of the Central Bank and not to make it an instrument in the hands of separate persons and state bodies;
-Provide extraordinary information, according to Article 52 of the law on the CB, concerning the reduction of international currency funds and necessary policies to overcome the situation;
-Stop illegal intimidation and pressure on trade banks and currency exchange points;
-In order to prevent inflation use other economic and monetary tools and other actions established by the law, provide transparency of price formation, demolish monopolies, exclude the cases of getting super-profits on part of people having monopolies.
In case of failing to do all these requirements the incumbent administration will fully bear the responsibility of collapsing the financial and economic systems of the country.”