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.
“Armenia’s economic indices are obvious, and the PM himself stated on it, saying that our economy is in a hard condition. And regarding its becoming a Eurasian integration center, sincerely, I don’t imagine what it means. That formulation isn’t clear. How can Armenia become an integration center?”
2.5 months prior to the deadline it became clear that the third bank, quitting Armenian banking system is Areximbank-Gazprombank Group CJSC. Initially Russian press informed that Gazprombank has sold Armenian Areximbank.
“Comprising a part of that economic space, basically, Armenia is a part of Russian political, military and economic space, and as international sanctions are being imposed, which already means that investments in Armenia are also risky.”
“We are touching upon the equal field, however, we had other precedent, when prior to the crisis Governments of both Hovik Abrahamyan and Tigran Sargsyan supported business. It’s already not about the equal field, but the Government mediated, and the practice of large loans, allocation of tax privileges extended for a rather long period.”
“While the regime is engaged in theatrical ceremonies of improving the government system and the electoral process, obviously directed not to the recovery of the state but to strengthening and perpetuating their own authority, real economic disaster, this time in disguise of sweet-sounding word “default”, threatens our country.”
Referring to the Tax Code, E.Tarasyan stated that they have intensive connection with businessmen, the Ministry conducts analysis in which Tax Code the directions may prevent economic growth and what possible changes may be implemented.
One of the biggest issues, according to him, is that pressure of state debt service on the budget has increased. If debt payments comprised 1-2% of budget incomes, then presently they exceed 8%. According to Arshaluys Margaryan this means that increase of budget expenditures only provides the debt service.
“For example, make out a white list of non-risky countries and accept their invoice price. I mean the countries where there is a VAT refund. We need to study this area in order to streamline it and curb the red tape by minimizing the field for application of reference prices. Businesses need to understand the rules of the game. I think we will succeed here.”
Armenian NPP launched implementation of programs on planned repair and extension of its exploitation. Movses Vardanyan, Acting General Director of ANPP, told reporters today. According to him, it’s planned that the block will be under repair for 67 days—until November 25, which has been agreed with the Commission.
