Yerevan /Mediamax/. Armenia should demonstrate judicious attitude and get ready for more negative economic developments, Directors of Middle East and Central Asia Department of the International Monetary Fund (IMF) Masood Ahmed stated.

Mediamax reports that, speaking at a news conference in Yerevan today, devoted to discussion of the influence of the global financial-economic crisis on Armenia, Masood Ahmed stated that economic decline in Russia has not yet fully influenced Armenia and before the improvement of Armenian economy state, expected in 2010, the situation will, probably, become worse.

Masood Ahmed advised Armenian authorities to use various fiscal stimuli for social protection of the needy and randomly occurring stabilizing factors.

According to IMF representative, against the background of reduction of export, private transfers, foreign investments, as well as national currency devaluation and growth of dollarization, positive factors in the struggle against crisis in Armenia are the low level of external debt, “idle” credits and inflation.

Deputy Chairman of the Central Bank (CB) of Armenia Vache Gabrielyan stated in his speech that, despite the overcapitalization of the banking system of the country, Armenian banks cannot hold active credit policy in conditions of 70% dollarization and macroeconomic uncertainty. Vache Gabrielyan stated that, despite the given fact, in the course of the recent few months Armenian banks have issued credits at the volume of a few dozens of thousands.

“In the course of the recent two years the capital of the banking system of Armenia increased for 37%, and the losses of banks as a result of devaluation expectations made only 2%”, Vache Gabrielyan stated. 

According to him, the expansive monetary-credit policy of CB, not forgetting about inflationary risks, strives to allow banks increasing crediting and stimulating economic growth. “In 2008, inflation in Armenia was the lowest in CIS, and we hope that this year our country will again have the lowest inflation in the region”, the Deputy Chairman of Armenian CB stated.

In his turn, Chairman of the Union of Manufacturers and Businessmen of Armenia Arsen Kazaryan stated that the government of the country needs to accelerate the process of improving customs and tax administration, establishing equal competitive conditions and favorable investment climate. He also noted that the real sector of the Armenian economy needs speedy and effective crediting.