BREAD PRICES DEPEND ON RUSSIA'S GRAIN CROP
Support A1+!On Monday, the head of the Central Bank Tigran Sargsyan, presenting the 2003 financial report, told journalists the economic growth had been recorded and some overspending seen in the last year.
Inflation made 3 percent instead of expected 8,6. Inflation rate could be less if it were not increase in bread prices.
The Central Bank governor says gross domestic product rose 13,9%.
He emphasized banks successful activity in 2003. Only three banks sustained losses of 408 million drams. Bank system need reforms, he said, but that problem can be solved only after ridding of criminal banks and by combating shadow economy, Sargsyan says.
Answering the question our correspondent put to him about possible increase in prices, Sargsyan said precipitous surge is unlikely. Bread prices will be kept pegged at least till coming fall. Afterward, the issue will be solved taking into account this year crop in Russia and Ukraine and fuel prices will climb due to outside factors.
