According to the former President of the Central Bank (CB) of Armenia Bagrat Asatryan the directions of the economic policy of the RA government and the directions of the economic policy conducted by the Central Bank are irreconcilable. According to him the government says that it aims to activate the economic growth, the CB keeps the refinancing interest rates high – one of the highest in the CIS states, as a result of which the credits become very expensive. Therefore, the entrepreneurs refuse to take those loans. “When the whole world is trying to reduce the interest rates to overcome the crisis in Armenia they are doing the opposite. Reduction of the interest rates of loans is one of the key options of overcoming hard economic times,” he said. The former CB chair also stipulates this circumstance with the low role of the Armenian banks in the process of economic development. The economic growth, according to him, is mainly conditioned by external factors. Among them B. Asatryan attached great importance to the abrupt and essential rise of the price of metals in the international markets, particularly, the price of the molybdenum, which is of interest for Armenia. “Perhaps it has not reached to a historically high price, but as of 4-5 months, it has never had such a high price. It essentially influences on the Armenian economy,” B. Asatryan said. According to him, growth of almost 10 % has been registered over the 4 months especially in industry, which, according to the speaker, is 60-70% conditioned by mining. The next of the external factors, according to him, is conditioned by private transfers. “From that viewpoint we started the year not successfully, but the situation changed by the data of the quarter. This was also decisive in the issue of the general index of the economic growth,” the former chairman of the Central Bank said. To the observation that the IMF and the WB have always claimed that Armenia will never have a problem with serving the foreign debt Asatryan said that for the IMF 4-5 billion USD is not a very big number but for Armenia those are “terrible numbers.” “In the recent period I only see formal approach to us. The impression is that they are here to put a signature and leave. They have some scale, according to which is the foreign debt doesn’t reach the red line then there is no need to worry.” The next of the external factors, according to him, is conditioned by private transfers. “From that viewpoint we started the year not successfully, but the situation changed by the data of the quarter. This was also decisive in the issue of the general index of the economic growth,” the former chairman of the Central Bank said. Speaking of the inflation, Asatryan said that in that regard the year is quite strained. The index of the consumption prices in the 5 months of 2010 has made 5, 3 %. According to him, the prices of goods have mainly risen. The speaker especially considered pitiful the circumstance that a rise is registered mainly in the products, which are of local production, for example, the cost of the potato has risen by 11%. He added that prices for foodstuff are decreasing worldwide, while in Armenia they continue growing. 1% inflation rate was recorded at Armenia’s consumer market in May as compared with April 2010. Meanwhile, the index of consumer prices is 106.3% during the reporting period as compared with May 2009. By comparing the markets of Armenia and the international ones Asatryan said, “In the world market the prices are increasing. So do in Armenia.” According to him the situation comes to prove that monopolies dominate in Armenia. “What happened in 2009 in the aspect of economic policy is very difficult to understand. The government was unanimously saying that the means of salvation is the involvement of foreign financial means. The CB was being silent but it should have said that this was an incorrect policy,” he said when speaking of the current situation. As of the small and medium businesses Asatryan said, “I don’t have anything to say here. Our system is meant to destroy the small and medium business. I don’t have a serious approach to the statements of certain statesmen. The big businesses are doing their best to choke the smaller ones. They currently have all the possible levers – political and even military to a certain extent. In a broad meaning they are a state within the state. This is our reality.” As of the conversations on the economic growth he said, “Of course, when we are speaking of the economic growth we should understand what it’s connected with. Is this the growth provided by the correct policies of the government and the solutions offered? I should say no.” He mentioned that the government didn’t hide that the growth is stipulated by foreign factors, among which is the abrupt rise of the price of precious metals in the world markets, in particular copper, which is a serious opportunity for Armenian exportation. However, in his words, this couldn’t have an essential influence on our economy and only a few people could become rich because of that. “It is good that the growth exists but it’s passive and unreliable and I have concerns regarding the further growth of economy.”
