Monday, November 28 2016 16:20
Emmanuil Mkrtchyan

Tigran Jrbashyan has mixed feelings as he resigns from position of Head of American Chamber of Commerce in Armenia

Tigran Jrbashyan has mixed feelings as he resigns from position of Head of American Chamber of Commerce in Armenia

ArmInfo. Famous Armenian economist Tigran Jrbashyan has resigned from the position of director of American Chamber of Commerce in Armenia (AmCham)  with mixed feelings. On the one hand he is satisfied with the work that has been done for further development of this structure, on the other hand he has deep feeling of disappointment with the state authorities' inability to set right priorities of economic development focusing on development of business environment and to refuse from vicious practice of managing economy at the expense of increasing the debt burden.

During the meeting with journalists today Tigran Jrbashyan has criticized economic policy conducted in Armenia. According to him all the attempts of the business community, one of the members of which was AmCham, to motivate the authorities to initiate crucial economic reforms that might be launched by adopting conceptually new Tax Code were not welcomed in National Assembly of the country. "We thought that we have reached agreement with the MPs to reformat the work basing on direct ties between entrepreneurs and legislations, using the mechanisms of public hearings and dialog, however this does not happen and the interests of the business were once again ignored", the expert noted. He stressed that the Tax Code, which should have become the first serious document aimed at development, has in fact become instrument of fiscal policy aimed at exclusively replenishment of state budget at the expense of further reduction of business activity. He stressed that the country has no other alternative than to start seriously develop business environment, increase internal capital investments and attract foreign investments.

It is impossible to further rely on vicious practice used for all these years based on increasing the foreign debts at the expense of which state capital investments are made and external demand is stimulated. "Such a flawed formula in economic policy may be used only in short-term perspective, as a measure for overcoming crisis conditions. We had started using it since the end of 2000ies and as a result we have witnessed deterioration of business climate conditions, significant reduction of amounts of capital investments in the main capital and unprecedented decline of direct foreign investments during the whole period of Armenia's independence", Jrbashyan stressed. According to him by the end of the year real GDP of the country will not reach even 1%, while amount of foreign investments will hardly exceed $100 mln.  Gross fixed capital formation (GFCF) does not exceed 21% in the country. "We currently need talks and slogans least of all. We should  restructurise the whole economic model, achieve of reallocation of public incomes considering stimulation of economic activities. Of course, we can continue to increase debt burden for some more time,  restructurise it supporting our vitality, however without drastic reforms in the economy nothing will work out", the expert emphasized expressing weak hope that after the new parliamentary elections in early April the situation may change.

To note, Armenia's aggregate state debt will reache54.6% of the country's GDP by the end of 2016. In 2017 according to Armenia's Finance Ministry's forecasts the indicator will reach 56.1%. Already in 2020 $921 mln will be spent on redeeming and servicing state debt, $164 mln of which will be spent as repayment of interest rates.

To note the amount of transfers to Armenia in 2014-2015 has declined by $700 mln, in 2016 decline by $140 mln is forecasted. Lacking about $900 mln the government increased the foreign debt almost equally.  As a result, as Finance Minister of Armenia Vardan Aramyan stated the country's foreign debt in 2014, 2015, 2016 increased almost by $900 mln. "In other case sharp devaluation of national currency and weak economic growth would be registered in Armenia", the Minister summarized.

POST A COMMENT
Input digits     


News
Moldova bans FlyOne Armenia operations in country Moldova bans FlyOne Armenia operations in country 
In Armenia`s insurance market  premiums started to decrease and  compensations are losing their growthIn Armenia`s insurance market  premiums started to decrease and  compensations are losing their growth
In 2024, foreigners purchased only 2.7% of real estateIn 2024, foreigners purchased only 2.7% of real estate
Opening of  Opening of  "Zangezur corridor" aligns with France`s interests in  Central Asian uranium - expert
Acquisition of the Acquisition of the "Metropolis" Shopping Mall in Moscow by an  Armenian company has become one of the largest investments in the  Eurasian region
Acba Bank to start public placement of its AMD bonds on February 20Acba Bank to start public placement of its AMD bonds on February 20
Universal Income Declaration: what happened has little in common with  what was intended - David AnanyanUniversal Income Declaration: what happened has little in common with  what was intended - David Ananyan
Armenia`s high-tech minister meets with UAE Minister of State for  Defense Affairs in Abu Dhabi Armenia`s high-tech minister meets with UAE Minister of State for  Defense Affairs in Abu Dhabi 
Yerevan one of most expensive cities  - NumbeoYerevan one of most expensive cities  - Numbeo
Armenian vice-premier, head of EBRD Armenia office discuss road,  water-supply system construction projects Armenian vice-premier, head of EBRD Armenia office discuss road,  water-supply system construction projects 
423 Armenian truck in queue at Upper Lars checkpoint423 Armenian truck in queue at Upper Lars checkpoint
Russian vice-premier offers Caspian Five to analyze closer ties with  EAEURussian vice-premier offers Caspian Five to analyze closer ties with  EAEU
ZCMC started implementing a new payroll system for production  employeesZCMC started implementing a new payroll system for production  employees
Armenia, UAE agreed to collaborate on space technology projectsArmenia, UAE agreed to collaborate on space technology projects
Russian money flowing back. What awaits  Armenia`s economy? -Aghasi  TavadyanRussian money flowing back. What awaits  Armenia`s economy? -Aghasi  Tavadyan
Attempts to advance programs in logic of extraterritorial corridor  have veiled agenda and territorial claims  - Armen SimonyanAttempts to advance programs in logic of extraterritorial corridor  have veiled agenda and territorial claims  - Armen Simonyan
Armenia`s Ministry of Economy proposes subsidizing ensurance premiums  for 2025 agricultural year Armenia`s Ministry of Economy proposes subsidizing ensurance premiums  for 2025 agricultural year 
Armenia`s tourism potential to be presented in Spain, Germany,  Russia, UAE, UKArmenia`s tourism potential to be presented in Spain, Germany,  Russia, UAE, UK
Armenia`s Ministry of Economy to allocate AMD 15bln to compensate for  customs duties paid by processing enterprises for exports EU  countries, UKArmenia`s Ministry of Economy to allocate AMD 15bln to compensate for  customs duties paid by processing enterprises for exports EU  countries, UK
Access to communications of strategic importance for Armenia`s  economy - Hakob ArshakyanAccess to communications of strategic importance for Armenia`s  economy - Hakob Arshakyan
Lars closed for transport Lars closed for transport 
Upper Lars checkpoint closed for transport Upper Lars checkpoint closed for transport 
Pashinyan: From January 1 to present, 1,625 people received  reimbursement for social expensesPashinyan: From January 1 to present, 1,625 people received  reimbursement for social expenses
Can all expenses on education and sports in Armenia be reimbursed  within the framework of the <social credit> programCan all expenses on education and sports in Armenia be reimbursed  within the framework of the program
Profits of Armenia`s insurance sector go on decreasing Profits of Armenia`s insurance sector go on decreasing 
Armenia ready to take active part in coping with information security  challenges Armenia ready to take active part in coping with information security  challenges 
Armenia`s minister of high-tech industry, WB reps discuss expansion  of cooperationArmenia`s minister of high-tech industry, WB reps discuss expansion  of cooperation
Armenia runs out of 81% of duty-free import of electric vehicles by  persons without distribution agreements Armenia runs out of 81% of duty-free import of electric vehicles by  persons without distribution agreements 
USD transactions down, RUB ones up in Armenia`s interbank foreign  exchange market, Feb 10-14USD transactions down, RUB ones up in Armenia`s interbank foreign  exchange market, Feb 10-14
Armenian wine showcased in France - Wine Paris 2025Armenian wine showcased in France - Wine Paris 2025
In 2024, Armenia`s population increased, however, the entry-exit  balance remained negativeIn 2024, Armenia`s population increased, however, the entry-exit  balance remained negative
KardaLove 2024: AraratBank is the Main Sponsor of the Book FestivalKardaLove 2024: AraratBank is the Main Sponsor of the Book Festival
Armenia to implement subsidy program for real fruit vodka  production  Armenia to implement subsidy program for real fruit vodka  production  
RA State Revenue Committee on procedure of temporary import of  personal vehiclesRA State Revenue Committee on procedure of temporary import of  personal vehicles
326 trucks from Armenia at Upper Lars check-point 326 trucks from Armenia at Upper Lars check-point 
South Caucasus Railway sets discount price for  Yereavn-Tbilisi-Yerevan train tickets South Caucasus Railway sets discount price for  Yereavn-Tbilisi-Yerevan train tickets 
Armenia`s government discusses 2025-2029 framework partnership  programme with WBArmenia`s government discusses 2025-2029 framework partnership  programme with WB
Ameriabank absolute leader in car-purchase lending Ameriabank absolute leader in car-purchase lending 
AraratBank Receives Prestigious Partner of the Year Award from Ria Money TransferAraratBank Receives Prestigious Partner of the Year Award from Ria Money Transfer
Armenia`s Ministry of Finance harmonizing laws with premier`s  statements Armenia`s Ministry of Finance harmonizing laws with premier`s  statements 
Armenia, India considering joint research and developmentArmenia, India considering joint research and development
No calculations on energy consumption available in Armenia as basis  for energy generating facilities - expertNo calculations on energy consumption available in Armenia as basis  for energy generating facilities - expert
Armenia joins Interreg Next development programme of Black Sea basinArmenia joins Interreg Next development programme of Black Sea basin
2024 year of radical electric energy reforms 2024 year of radical electric energy reforms 
Armenia needs conditions for solar, hydro energy to be basic -  ex-official Armenia needs conditions for solar, hydro energy to be basic - ex-official
Armenia needs new 600MW nuclear unit - ex-official Armenia needs new 600MW nuclear unit - ex-official 
Central Bank Governor: We are trying to establish new systems capable  of addressing new challengesCentral Bank Governor: We are trying to establish new systems capable  of addressing new challenges
Armenia eventually will phase out the turnover tax - Prime MinisterArmenia eventually will phase out the turnover tax - Prime Minister
Viva Armenia issues its first bonds worth $80 million, with  Ameriabank  as  underwriterViva Armenia issues its first bonds worth $80 million, with  Ameriabank  as  underwriter
Expert: Closing Metsamor NPP without constructing a new one would be  disastrous for ArmeniaExpert: Closing Metsamor NPP without constructing a new one would be  disastrous for Armenia
Greater administrative liability for late submission of fnancial  reports to be in effect in Armenia Greater administrative liability for late submission of fnancial  reports to be in effect in Armenia 
Armenian NA approves amendments to Law on Budget System Armenian NA approves amendments to Law on Budget System 
Real estate prices to remain unchanged in Armenia in 2025 Real estate prices to remain unchanged in Armenia in 2025 
Armenia`s high-tech exports saw a slight increase in 2024Armenia`s high-tech exports saw a slight increase in 2024
Roman Khudoliy: We affirm our unwavering commitment to adhering and  implementing decisions made by companyRoman Khudoliy: We affirm our unwavering commitment to adhering and  implementing decisions made by company
Pashinyan attends plenary session of Artificial Intelligence Action  Summit in ParisPashinyan attends plenary session of Artificial Intelligence Action  Summit in Paris
About 900 approved applications for participation in bad loan  repayment programme in Armenia About 900 approved applications for participation in bad loan  repayment programme in Armenia 
Armenia`s ministry of economy proposes bill to rule out duty-free import of electric vehicles Armenia`s ministry of economy proposes bill to rule out duty-free import of electric vehicles 
Armenia`s savings funds used ineffectively - MPArmenia`s savings funds used ineffectively - MP
Armenia to cooperate with French companies in AI ecosystem  development Armenia to cooperate with French companies in AI ecosystem  development 
Read more
Exchange rates
19.02.2025
RUB4.390.04
USD395.72-0.51
EUR412.42-2.20
GBP498.21-0.92
CAD278.60-0.59
JPY26.08-0.03
CNY54.31-0.12
CHF437.79-1.83