Senior ARF Member Calls for Monetary Reform in Armenia

Member of the Armenian National Assembly Artsvik Minasyan

YEREVAN (Arka)—A senior member of the opposition Armenian Revolutionary Federation (ARF) party, Artsvik Minasyan, says Armenia needs to reform its monetary system.

Speaking at a session of Parliament on Wednesday, Minasyan said it is pointless to speak about macroeconomic stability, which implies economic growth, high employment, and objective balance of payments, when none of these factors can be found in Armenia.

According to him, the current state of the economy is the result of measures to curb inflation and the domination of the market by monopolies, making a monetary reform even more urgent.

Minasyan argued that all economic calculations show that the current monetary system is no longer able to serve the economy and ensure quick development.

Minasyan’s suggestion for monetary reform, he says, is a devaluation of the national currency that will increase export opportunities for manufacturers, as well as preserve the purchasing power of the population.

“With the current rate of revenue collection and spending our economy is unable to develop. The ratio of taxes to GDP is far from normal, but in reality, the burden on the government is extremely high. There is a large shadow economy, no level playing field, which is another piece of evidence in support of monetary reform,” he said.

According to the National Statistical Service, Armenia’s GDP grew by 3.5 percent in 2013, widely missing the projected 6.2 percent. The projection for 2014 is 5.2 percent.


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One Comment;

  1. hidi said:

    **** I just wish that the government in Armenia listens to people like him…, who differently have the economic brain to suggest new ways of improving the GDP., and not get stock in the last century’s out dated formula., and stop favoritism that is hurting the country economically.