Armenia’s ex-finance minister skeptical about foreign investments

YEREVAN, February 11. /ARKA/. Armenian authorities should not hope for a substantial inflow of foreign investments into the country’s economy, former finance minister Vardan Aramyan said in an interview with 168.am.

Aramyan said investment arrive if a country has fiscal, financial and credit stability, as well as political stability and security.

"Let's suppose that fiscal and financial-credit stability is secured, although I see some risks, the Central Bank does its work and the Finance Ministry closed the year with less deficit... But let's put that aside. Political stability and security concerns persist," noted Aramyan.

“Investors prefer investing money when there's political security, i.e. when there's no risk of regime change, because the new government may come with new doctrine and new economic policy,’ he said.

"There is another important factor- I mean security. For example, who of the big investors will invest now in Syria? The same is true with the south-eastern Armenian province of Syunik. If there are security risks, the threat of military action, then there is also a threat to investments. Global academic economics and international experience prove that," said the former minister.

According to him, even domestic investors are skeptical and the volume of foreign investments is modest.

According to Armenia's National Statistical Committee, foreign investments into the country in January-September 2021 amounted to over 162 billion drams, up from 16.3 billion drams recorded for the same period in 2020. -0-