Armenian government’s bailout efforts to last as long as necessary

YEREVAN, August 29. /ARKA/. Armenian government will be taking bailout steps as long as necessary to rid the country of the recession, Armenian Finance Minister Tigran Davtyan said Friday in Novosti International Press Center.

He thinks that the cash injections already made and those still to be made in the national economy will produce results later this year.

In his words, the real sector will see the effect from the resources sent here in the fourth quarter, and some rally will be visible in Armenia’s economy.

The minister said that the economy is an inertial system and any step taken here produces lag, not immediate effect.

He said that reallocations in the state budget and transition of some expenses to the fourth quarter were made under the governmental program.

Davtyan explained that some part of expenditure shrank, but other, not planned expenses emerged for stimulating the economy.

“I mean additional expenses of AMD 24 to 25 billion intended for recovering quake-stricken areas and AMD 15 billion for returning exporters’ VAT overpayment.”

The minister also said that some seven or eight billion will be targeted for lending money to the real sector of the economy.

“These expenses are intended for stimulating the economy and improving GDP”, he said.

On March 26, 2009, Armenian government decided to make reallocations in the 2009 state budget and ceased working out mid-term expenditure program for 2010-2012. ($1 = AMD 376.09). M.V. --0--