Outgoing head of Central Banks says coronavirus crisis will have more serious impact than that of 2008
12.06.2020,
15:29
The chairman of Armenia's Central Bank Artur Javadyan, whose term in office ends on June 15, told in an interview with 'Haykakan Zhamanak' daily that the financial and economic crisis caused by the coronavirus will have much more serious consequences for the global economy than the 2008 crisis.
YEREVAN, June 12. /ARKA/. The chairman of Armenia's Central Bank Artur Javadyan, whose term in office ends on June 15, told in an interview with 'Haykakan Zhamanak' daily that the financial and economic crisis caused by the coronavirus will have much more serious consequences for the global economy than the 2008 crisis.
According to Javadyan, the crisis experienced by Armenia in 2014-2015 was a regional one that affected largely former Soviet republics which are members of the Commonwealth of Independent States (CIS). He said the 2014-2015 crisis taught lessons contributing to emergence of successful crisis managers, business decision-making processes and experience.
'Based on all this, we appeared to be much better prepared for the coronavirus crisis,' he said. According to Javadyan, this time everyone was much calmer, because of the prevailing uncertainty, which is still there, and no one knows when it will end, what the consequences will be and how to get out of it.
“This crisis is much more dangerous in itself, but we are much more ready to overcome it, not only we, but also market participants, the banks, which have buffers, are well capitalized, the situation is good, and in this sense I think that there are far fewer problems," he stressed.
However, as the head of the Central Bank said, all this depends on several factors, the most important of which is how long the fluctuations caused by the coronavirus will last.
"Now we are receiving new information that the situation in our neighboring country - in Iran, is not very good. In Asian countries - in India, there are difficulties with observing sanitary standards. Another question is what will be the next step in countries which managed to cope with the virus, as they have opened their borders," he said.
Javadyan disagreed with arguments that Armenian leadership made big mistakes in responding to the outbreak of the disease.
"Today, the situation in the financial sector and economy is under control, but, of course, it all depends on how long the crisis will last," he summed up.
A 30-day state of emergency to curb the spread of coronavirus was declared in Armenia on March 16 and restrictions were imposed on free movement of citizens. The government banned also some types of economic activity. On April 13, the government extended the state of emergency for another month and on May 4 it lifted the ban on almost all types of economic activity and the free movement of citizens, except for public transport. On May 14, the government has again extended the state of emergency for another 30 days.
However, despite the extension, public transport, preschools, trading centers, restaurants and gyms have reopened starting from May 18, and wearing of masks has become mandatory in public spaces.
Today, the government has extended the state of emergency for another month- until July 13. According to official data, the number of confirmed Covid-19 cases has risen to 15,281. The Ministry of Health said that the death toll has risen to 258. Health authorities also said that a total of 5,639 patients have recovered from the disease. -0-
According to Javadyan, the crisis experienced by Armenia in 2014-2015 was a regional one that affected largely former Soviet republics which are members of the Commonwealth of Independent States (CIS). He said the 2014-2015 crisis taught lessons contributing to emergence of successful crisis managers, business decision-making processes and experience.
'Based on all this, we appeared to be much better prepared for the coronavirus crisis,' he said. According to Javadyan, this time everyone was much calmer, because of the prevailing uncertainty, which is still there, and no one knows when it will end, what the consequences will be and how to get out of it.
“This crisis is much more dangerous in itself, but we are much more ready to overcome it, not only we, but also market participants, the banks, which have buffers, are well capitalized, the situation is good, and in this sense I think that there are far fewer problems," he stressed.
However, as the head of the Central Bank said, all this depends on several factors, the most important of which is how long the fluctuations caused by the coronavirus will last.
"Now we are receiving new information that the situation in our neighboring country - in Iran, is not very good. In Asian countries - in India, there are difficulties with observing sanitary standards. Another question is what will be the next step in countries which managed to cope with the virus, as they have opened their borders," he said.
Javadyan disagreed with arguments that Armenian leadership made big mistakes in responding to the outbreak of the disease.
"Today, the situation in the financial sector and economy is under control, but, of course, it all depends on how long the crisis will last," he summed up.
A 30-day state of emergency to curb the spread of coronavirus was declared in Armenia on March 16 and restrictions were imposed on free movement of citizens. The government banned also some types of economic activity. On April 13, the government extended the state of emergency for another month and on May 4 it lifted the ban on almost all types of economic activity and the free movement of citizens, except for public transport. On May 14, the government has again extended the state of emergency for another 30 days.
However, despite the extension, public transport, preschools, trading centers, restaurants and gyms have reopened starting from May 18, and wearing of masks has become mandatory in public spaces.
Today, the government has extended the state of emergency for another month- until July 13. According to official data, the number of confirmed Covid-19 cases has risen to 15,281. The Ministry of Health said that the death toll has risen to 258. Health authorities also said that a total of 5,639 patients have recovered from the disease. -0-
