Tweet
FORMER PM: ARMENIA IN NEED OF NEW SUBSTANTIAL ECONOMIC REFORMS
ARKA
Jan 18, 2010
YEREVAN, January 18. /ARKA/. Armenia is in need of new substantial
economic reforms, Hrant Bgratyan, a representative of Armenian National
Congress and a former prime minister, said on Monday.
"Economic decline in Armenia will continue until the country's
government embarks on large-scale reforms," he said.
He proposed to take some steps, such as introduction of progressive
taxation.
Bagratyan also thinks the government should refrain from promoting
elite housing, since construction companies just worsen things.
He finds it irrelevant for such a poor country to build 20,000 elite
apartments, since nobody will purchase them at least in the coming
five years.
The former premier also thinks that the government should prohibit
commercial banks from re-crediting constructors.
"It is senseless to send funds to the construction," he said.
Bagratyan doesn't think that establishment of All-Armenian bank,
construction of North-South highway and a new nuclear power plant
are able to remedy the situation.
He predicted further, and even worse recession.
On November 20, 2008, the government gave its approval to the project
of establishment of the All-Armenian Bank with AMD 30-billion (about
$100 million) capital.
The bank's founders will be the government with 20% participation,
world leading financial organizations and private investors.
For modernization of North-South transport corridor, Asian Development
Bank pledged $500 million to Armenia.
The highway is planned to be put into exploitation in 2016.
Armenia is also planning to build a new, 1,000-megawatt nuclear
power unit.
The energy ministry says the project may cost $5 billion.
The construction is scheduled to be launched in 2011. European
countries, Russia and the United States have expressed their interest
in the project.
National Statistical Service of Armenia says GDP reduced 16% in
Jan-Nov 2009, compared with the same period a year earlier.
According to the 2010 state budget, Armenia will enjoy 1.2% economic
growth this year.
ARKA
Jan 18, 2010
YEREVAN, January 18. /ARKA/. Armenia is in need of new substantial
economic reforms, Hrant Bgratyan, a representative of Armenian National
Congress and a former prime minister, said on Monday.
"Economic decline in Armenia will continue until the country's
government embarks on large-scale reforms," he said.
He proposed to take some steps, such as introduction of progressive
taxation.
Bagratyan also thinks the government should refrain from promoting
elite housing, since construction companies just worsen things.
He finds it irrelevant for such a poor country to build 20,000 elite
apartments, since nobody will purchase them at least in the coming
five years.
The former premier also thinks that the government should prohibit
commercial banks from re-crediting constructors.
"It is senseless to send funds to the construction," he said.
Bagratyan doesn't think that establishment of All-Armenian bank,
construction of North-South highway and a new nuclear power plant
are able to remedy the situation.
He predicted further, and even worse recession.
On November 20, 2008, the government gave its approval to the project
of establishment of the All-Armenian Bank with AMD 30-billion (about
$100 million) capital.
The bank's founders will be the government with 20% participation,
world leading financial organizations and private investors.
For modernization of North-South transport corridor, Asian Development
Bank pledged $500 million to Armenia.
The highway is planned to be put into exploitation in 2016.
Armenia is also planning to build a new, 1,000-megawatt nuclear
power unit.
The energy ministry says the project may cost $5 billion.
The construction is scheduled to be launched in 2011. European
countries, Russia and the United States have expressed their interest
in the project.
National Statistical Service of Armenia says GDP reduced 16% in
Jan-Nov 2009, compared with the same period a year earlier.
According to the 2010 state budget, Armenia will enjoy 1.2% economic
growth this year.