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HRANT BAGRATYAN: TIGRAN SARGSYAN TRIED TO STIMULATE CONSTRUCTION BUT FAILED TO
by Tigran Khachatryan
Tuesday, January 14, 22:19
When Tigran Sargsyan was the head of the Central Bank of Armenia
(CBA), he was trying to stimulate construction, but failed to,
ex-Prime Minister of Armenia, opposition MP Hrant Bagratyan says on
his Facebook page, when responding to the incumbent Prime Minister's
opinion that during the pre-crisis period Armenia's economy was poorly
diversified and grew due to the construction bubble only. To note,
Tigran Sargsyan expressed his opinion in his indirect debates with
the second President of Armenia Robert Kocharyan.
He says that in 2001-2007 construction grew from 110 bln to 671
bln AMD, with the state and the banks' shares being 9-10% and 80%,
respectively. It was then that the chief banker of the country was
the incumbent Prime Minister of Armenia Tigran Sargsyan.
"The Prime Minister's statements have nothing to do with the financial
or the construction bubble. There was nothing of the kind in Armenia.
In this case everything is clear. Migration grew 5-fold. In 2001-2007
an average of 15-20 thsd people annually left Armenia, whereas in
2008-2013 the average annual migration totaled 63 thsd people. Now
people are leaving Armenia forever. They are selling their houses. As
a result, resonant pressure occurred on the property market, where
the supply is high and there is almost no demand. The outflow of the
population results in reduction of property buyers amid the regular
housing growth", says Bagratyan.
As regards the pension reform, Bagratyan does not share the opinion
of the second President of Armenia Robert Kocharyan. Bagratyan thinks
that there are no contradictions between the two models of pension
systems (compulsory contribution pension system and solidarity between
generations). These systems should be properly compared, he says.
"These two pension models are quite coherent. The authorities'
decision to switch to the compulsory system was mostly spontaneous.
On the other hand, they took certain steps to harmonize the new model
with the current system of solidarity between generations.
Particularly, at the end of a fiscal year employees will be granted tax
privileges, which will make the system non-compulsory. Employers will
also make the payments. One in a decade an employee will be able to
use his or her funds. In order to make pension funds more efficient,
the size requirement to their capitals must be reduced from 500mln
AMD to 200mln AMD. We must also prevent the outflow of this money
from the country. This is crucial for our sovereignty," Bagratyan says.
This is Bagratyan's response to the recent dispute between former
President of Armenia Robert Kocharyan and current Armenian Prime
Minister Tigran Sargsyan.
In his interview to 2rd.am, Kocharyan slated Sargsyan and urged him
to work instead of blaming his predecessors.
http://www.arminfo.am/index.cfm?objectid=CEB79400-7D50-11E3-9B870EB7C0D21663
From: Baghdasarian
by Tigran Khachatryan
Tuesday, January 14, 22:19
When Tigran Sargsyan was the head of the Central Bank of Armenia
(CBA), he was trying to stimulate construction, but failed to,
ex-Prime Minister of Armenia, opposition MP Hrant Bagratyan says on
his Facebook page, when responding to the incumbent Prime Minister's
opinion that during the pre-crisis period Armenia's economy was poorly
diversified and grew due to the construction bubble only. To note,
Tigran Sargsyan expressed his opinion in his indirect debates with
the second President of Armenia Robert Kocharyan.
He says that in 2001-2007 construction grew from 110 bln to 671
bln AMD, with the state and the banks' shares being 9-10% and 80%,
respectively. It was then that the chief banker of the country was
the incumbent Prime Minister of Armenia Tigran Sargsyan.
"The Prime Minister's statements have nothing to do with the financial
or the construction bubble. There was nothing of the kind in Armenia.
In this case everything is clear. Migration grew 5-fold. In 2001-2007
an average of 15-20 thsd people annually left Armenia, whereas in
2008-2013 the average annual migration totaled 63 thsd people. Now
people are leaving Armenia forever. They are selling their houses. As
a result, resonant pressure occurred on the property market, where
the supply is high and there is almost no demand. The outflow of the
population results in reduction of property buyers amid the regular
housing growth", says Bagratyan.
As regards the pension reform, Bagratyan does not share the opinion
of the second President of Armenia Robert Kocharyan. Bagratyan thinks
that there are no contradictions between the two models of pension
systems (compulsory contribution pension system and solidarity between
generations). These systems should be properly compared, he says.
"These two pension models are quite coherent. The authorities'
decision to switch to the compulsory system was mostly spontaneous.
On the other hand, they took certain steps to harmonize the new model
with the current system of solidarity between generations.
Particularly, at the end of a fiscal year employees will be granted tax
privileges, which will make the system non-compulsory. Employers will
also make the payments. One in a decade an employee will be able to
use his or her funds. In order to make pension funds more efficient,
the size requirement to their capitals must be reduced from 500mln
AMD to 200mln AMD. We must also prevent the outflow of this money
from the country. This is crucial for our sovereignty," Bagratyan says.
This is Bagratyan's response to the recent dispute between former
President of Armenia Robert Kocharyan and current Armenian Prime
Minister Tigran Sargsyan.
In his interview to 2rd.am, Kocharyan slated Sargsyan and urged him
to work instead of blaming his predecessors.
http://www.arminfo.am/index.cfm?objectid=CEB79400-7D50-11E3-9B870EB7C0D21663
From: Baghdasarian