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JUST NOT TO HARM THE OLIGARCHS
Story from Lragir.am News:
http://www.lragir.am/engsrc/economy22141.html
Published: 15:20:26 - 08/06/2011
Although the foreign debt of Armenia is going to rise to 50 % of the
GDP by 2012, the government continues to borrow more. As of April
1, 2011, the foreign debt of Armenia has amounted to 3.382 billion
dollars. In the first quarter of 2011, it grew by 2.5%. In 2012 it
will reach 50% of the GDP. The total debt of the Republic of Armenia
(including internal) amounts to 3.884 billion dollars.
In a country with huge debt, all the efforts should logically
be directed at attracting investments and creating favorable
conditions for the capital to flow. Under the pressure of intentional
organizations, the authorities have adopted the law on the creation of
free, tax-free economic zones but these laws are not enforces as the
tax-free zone can reduce the immense profits of the local oligarchs.
In the result of this, despite liberalization of the economy,
investments decline.
According to the National Statistics Service of Armenia, the rate
of international investments in the real economic sector of Armenia
in January-March dropped by 19.5% to 130.6 million against the same
period of 2010.
The only hope is on remittances which have gone up. From January
to April 2011, 357 million dollars has been transferred to Armenia,
which is up by almost a quarter, compared with last year. Only from
Russia, 281 million dollars was transferred in four months, which
comprises 78.7% of total transfers.
However, remittances are only one tenth of the income of the nation.
The other 90% needs to be supplied somehow, which is done at the
expense of the growing debt, just not to harm the oligarchs.
Story from Lragir.am News:
http://www.lragir.am/engsrc/economy22141.html
Published: 15:20:26 - 08/06/2011
Although the foreign debt of Armenia is going to rise to 50 % of the
GDP by 2012, the government continues to borrow more. As of April
1, 2011, the foreign debt of Armenia has amounted to 3.382 billion
dollars. In the first quarter of 2011, it grew by 2.5%. In 2012 it
will reach 50% of the GDP. The total debt of the Republic of Armenia
(including internal) amounts to 3.884 billion dollars.
In a country with huge debt, all the efforts should logically
be directed at attracting investments and creating favorable
conditions for the capital to flow. Under the pressure of intentional
organizations, the authorities have adopted the law on the creation of
free, tax-free economic zones but these laws are not enforces as the
tax-free zone can reduce the immense profits of the local oligarchs.
In the result of this, despite liberalization of the economy,
investments decline.
According to the National Statistics Service of Armenia, the rate
of international investments in the real economic sector of Armenia
in January-March dropped by 19.5% to 130.6 million against the same
period of 2010.
The only hope is on remittances which have gone up. From January
to April 2011, 357 million dollars has been transferred to Armenia,
which is up by almost a quarter, compared with last year. Only from
Russia, 281 million dollars was transferred in four months, which
comprises 78.7% of total transfers.
However, remittances are only one tenth of the income of the nation.
The other 90% needs to be supplied somehow, which is done at the
expense of the growing debt, just not to harm the oligarchs.