Threat of default is big: Harutyun Mesropyan

Interview with management expert Harutyun Mesropyan.

Mr. Mesropyan, it was stated at the Forum of the Eurasian Partnership, that Armenia may become a Eurasian integration center. How would you comment on this?

I don’t comment likewise statements. Management is a serious science, and literally slogan statements, those phenomena aren’t interesting to management. The proportion of capabilities, possibilities, obstacles should be comprehended prior to making any statement. I think, time for stating such slogans has passed for Armenia, i.e. I don’t see any essence to make such statements, that Armenia will become a tourism, educational and Eurasian integration center…it’s enough, either do something, or don’t.

Russian presidential spokesman Sergey Glazyev stated that Armenia’s economy is recording “influential indices” after membership to EEU.

This is again from the line of statements. There is one simple principle of management—the eye should see and the hand should feel.

During Serzh Sargsyan’s visit to Moscow Russian president Vladimir Putin congratulated him on 10% economic growth, after being appointed a PM Karen Karapetyan stated, that economy is in a hard condition, and yesterday, prior to Putin’s visit to Armenia, first Armenian president Levon Ter-Petrosyan stated that Armenia faces a threat of default. Which opinion do you agree with?

There is simple logic: throughout recent years Armenian state debt has sharply grown, also budget collections have decreased, obvious recession is observed in different fields. I don’t want to enter the field of numbers, the one who wants, may look at them from the statistical service. Under these conditions again we reflect to statements.

In your opinion does Armenia face the threat of default or not?

State debt in our country has exceeded 50% of GDP. There are states, that if external debt exceeds 100%, default won’t be recorded, e.g. the USA, state debt of which is a few times more than the budget. This isn’t a normal phenomenon, but their debt is expressed in USD, and they type it i.e. paper, which is named a dollar, covers the debt, name of which is also a dollar. Do we have such a possibility? Our debt is in dollars, and we type drams. Accordingly, threat of default is big. This is economics and not a statement. However, it doesn’t mean that default will be recorded. But if we continue governing the country this way, default will be recorded. It depends on us. We shouldn’t make statements, but provide a result.

In your opinion, which is the purpose of likewise statements?

Political—both for external and internal consumption. One shouldn’t seek for anything else.

By Gayane Khachatryan