HAK proposes crisis management plan
Support A1+!The Armenian National Congress (HAK) issued a statement today which runs,
On March 3 the Central Bank of Armenia decided to give up the "policy of fixed currency". As a result the Armenian dram devalued by 20 percent in a day. The CB did not ground for its decision which led the country to a chaotic state.
The CB decision confirmed Levon Ter-Petrosyan's predictions that the authorities would be unable to continue the policy of currency rate maintenance leading to a sharp and abrupt depreciation of the Armenian dram
The chaotic state in the country was caused by the authorities' ignorance and indifference towards the global financial-economic crisis and ambitions to maintain this vicious economic system and serve the interests of oligarchs importing goods to Armenia.
The HAK has warned against the dram devaluation many times and advised the authorities to carry out a policy of floating currency stopping the plunder of extra reserves.
The regime's impudent policy was not resulted by their incapability to properly assess the situation, rather, it aims to make use of the given situation and pillage the country.
If at the beginning of the crisis, in October-November 2008, the authorities had pursued a policy of floating currency instead of that of fixed currency the aftermaths of the dram devolution wouldn't be that dramatic:
• unexpected hike in prices
• high rate of uncurbed inflation
• low level of extra reserves
• four-fold deficit of foreign trade balance
• unprecedented low level of budget entries /over 40-50 percent /
• deepening liquidation in banks
On the other hand, oligarchs and top officials make fortune at the expense of bankruptcy of small and medium-sized businesses. This leads to public distrust towards the government's fiscal policy and creates a financial panic among people.
Taking into account all the above-mentioned, the HAK calls for drastic measures to mitigate the situation: In particular, the authorities should
shift to a policy of floating currency, exclude the CB's administrative interference, restore currency reserves and stop embezzlements,
provide transparency of prices of essential goods aimed at excluding the chances of superprofit and take anti-monopoly measures,
monitor the prices of the import,
lower the prices of public services (namely that of gas and electricity) and make the activity of state bodies available to masses,
review the state budget 2009 and reduce the expenses of state apparatus.
publicise crisis managements measures and provide the public with daily accurate information
The HAK announces that today's economic grave situation and the chaotic state in the country are caused by the illegal authorities.
