Oligarchy and monopolies block flow of investments- ex-governor of central bank says
YEREVAN, September 12. /ARKA/. The Armenian economy is dominated by the oligarchy and monopolies, making competition and attraction of fresh investment impossible, according to ex-chairman of the Central Bank Bagrat Asatryan.
Speaking at a news conference Bagrat Asatryan described the official statistics on investments as ‘appalling.’ He cited the data of the Ministry of Economic Development and Investment, which says that in the first half of the year the negative indicator of net flows of aggregate foreign investments in the real sector of the Armenian economy totaled $51.2 million, while direct investments fell to $35.6 million.
He added that investments come largely from offshore countries. According to official statistics, the most significant amount of aggregate and foreign direct investments came to Armenia in the first half of 2017 from the British Isle of Jersey - $65.3 million.
"Armenia does not have a favorable investment climate. The Armenian economy has reached a state when it no longer needs money. There are no sectors where investments could be made- the country is closed. The Armenian economy is dominated by monopolies connected with authorities who simply do not tolerate competitors," he said.
Asatryan also noted that Armenia's banking system has huge resources for investments, but there is no demand for this money on part of economy.
In general, according to Asatryan, Armenia's economy is in a political trap. He believes that the lack of competition in politics does not allow implementation of systemic economic reforms. -0-