YEREVAN, February 17./ARKA/. Compulsory fund pension system will propel development of small and mid-scale businesses in Armenia, Vahram Baghdasaryan, an MP from the Republican Party of Armenia that rules the country, said Monday at a news conference.
In his opinion, the new system may drive lending interest rates down, and the lower interests will create favorable environment for small and medium businesses.
Earlier, Finance Minister David Sargsyan said that this pension reform is the only way for Armenia to create so-called long money, which will make it possible to extend mortgage loans for 20 years at 5-7% annual interest rates. In his words, pension money will be invested in highly reliable stocks, bonds and other securities all over the worlds, not only in Armenia.
“The ratio of the money brought from the country to the money remaining in the country is the subject of discussion now,” Baghdasaryan said. “This ratio is 60 to 40. It means the major part of the funds will remain inside the country contrary to the rumors going around.”
Baghdasaryan stressed that the only obstacle on the way of this reform is public distrust toward the funds. -0---