11:09, March 25, 2015
Policy Forum Armenia considers the recent issuance of a $500 million Eurobond by the government of Armenia as irresponsible and damaging for the country.
Armenia is undergoing a serious balance-of-payments crisis of its own making.
Over-reliance on remittances from Russia, unwillingness to allow the exchange rate to adjust, and continuous interventions on the foreign exchange market have resulted in significant overvaluation of the dram, serious loss of competitiveness, and significant decline in the Central Bank's foreign reserves. The aggregate activity, including exports, has slowed down considerably in recent months and the fiscal conditions are deteriorating rapidly as a result.
Deep reforms are needed to move Armenia's economy from an imminent collapse.
Armenian News
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