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ARMENIA IS PROTECTED AGAINST ECONOMIC CRISIS - WORLD BANK OFFICIAL
news.am
Oct 18 2011
Armenia
YEREVAN. - The economic crisis in Europe could firstly affect the
countries of Southeast Europe, World Bank representative Yvonne
Tsikata stated, during a briefing with news reporters on Tuesday,
speaking about the likelihood of a second wave of economic crisis
and its impact on Armenia.
In Tsikata's words, there are several factors that play a decisive
role during economic crises. First is trade, and those countries that
have large trade volumes with Greece and Italy would suffer greatly.
Second is the banking sector, but Armenia's banking system does
not have close relations with the financial systems of Greece or
Italy. In addition, liquidity interest rates are not high in Armenia,
so no problems should come about. And the third factor is linked to
the Euro-Dollar ratio. And Armenia is protected in this sense, too,
because, according to World Bank's representative, Armenia does not
make use of Euro.
Therefore in the case of a second wave of economic crisis, Armenia
would not experience a shock, albeit secondary affects, such as GDP
or tax reduction, could come about. "But the danger is far from here,"
Yvonne Tsikata concluded.
From: Baghdasarian
news.am
Oct 18 2011
Armenia
YEREVAN. - The economic crisis in Europe could firstly affect the
countries of Southeast Europe, World Bank representative Yvonne
Tsikata stated, during a briefing with news reporters on Tuesday,
speaking about the likelihood of a second wave of economic crisis
and its impact on Armenia.
In Tsikata's words, there are several factors that play a decisive
role during economic crises. First is trade, and those countries that
have large trade volumes with Greece and Italy would suffer greatly.
Second is the banking sector, but Armenia's banking system does
not have close relations with the financial systems of Greece or
Italy. In addition, liquidity interest rates are not high in Armenia,
so no problems should come about. And the third factor is linked to
the Euro-Dollar ratio. And Armenia is protected in this sense, too,
because, according to World Bank's representative, Armenia does not
make use of Euro.
Therefore in the case of a second wave of economic crisis, Armenia
would not experience a shock, albeit secondary affects, such as GDP
or tax reduction, could come about. "But the danger is far from here,"
Yvonne Tsikata concluded.
From: Baghdasarian