The
financial sector instability in Armenia, not least, the unprecedented fall in
the national currency in late November - early December, has revealed the evils
of the economic system, the oppositional Armenian National Congress (ANC) says
in a statement.
According to ANC, the key reason of the current
financial instability is the economic system that has been monopolized by
oligarchs. The system has survived due to foreign transfers only.
In addition, the statement says, the Central Bank's
years-long policy of artificial appreciation of the national dram has reduced
the state reserves to the dangerous minimum. The reserves have decreased by
$500 million over the last year. "Another reason of the current situation
is the constantly growing state debt amid declining investments," the ANC
says in the statement.
The authors of the statement are sure that the
Government and the Central Bank failed to take timely and effective measures to
stabilize the situation in the financial market. "For instance, a similar
situation in neighboring Georgia was settled within a few days, while the
crisis in Armenia continued for a month," ANC says.
All this, as the authors of the statement say,
resulted in price hikes and inflation. "It was not the sagging dram that
caused price hikes. Simply, the businesspersons 'affiliated with' the
authorities took advantage of the mess and decided to gain extra profits. This
has greatly affected the population and can plunge many more people into
poverty. The authorities are responsible for what is taking place in the
country. This regime of clans cares for its own interests only and constitutes
threat to Armenia. Out task number one is to overthrow it," the
oppositionists say in the statement.