Belyaninov: EDB interested in effective development of Armenian economy
16.08.2018,
11:06
In an exclusive interview with ARKA news agency Andrei Belyaninov, the Chairman of the Management Board of the Eurasian Development Bank (EDB), shares his views on the economic challenges of Armenia following the latest dramatic political changes and on the bank’s future operations in the country.
YEREVAN, August 16. /ARKA/. In an exclusive interview with ARKA news agency Andrei Belyaninov, the Chairman of the Management Board of the Eurasian Development Bank (EDB), shares his views on the economic challenges of Armenia following the latest dramatic political changes and on the bank’s future operations in the country.
ARKA - Mr. Belyaninov, in the light of the political changes that have taken place in Armenia, what challenges the Armenian economy can face and which are the key economic policy issues that should be prioritized by the government?
A. Belyaninov - Our bank is a financial, not political institution. Therefore, no matter what kind of challenges an economy is facing, we are ready to offer our capabilities and competence in helping solve financial problems. Naturally, we are interested in the effective economic development and stability of Armenia. Our analysts are ready to provide recommendations, if there is a request from Armenia.
ARKA - In its latest survey unveiled in June, the EDB raised the forecast for Armenian GDP growth for this year to 5.6%. Are you going to revise this forecast because of the political changes in Armenia?
A. Belyaninov - According to the Statistical Committee of the Republic of Armenia, economic activity in the country is at a rather high level. Economic activity growth indexes in the first half of the year indicate that Armenia is the leading country in terms of GDP growth among the EDB member states. From our point of view, Armenia's GDP growth forecast as a whole is in line with current trends in the economy.
ARKA - EDB's investment portfolio in Armenia stands at $185.6 million. Should we expect the ADB to expand its operations in Armenia in the context of the opening opportunities and the surge of interest towards Armenia from a number of foreign investors? And apart from financial assistance , what kind of other assistance will the EDB provide to Armenia?
A. Belyaninov - As part of its investment activities, the bank has signed earlier this year two new contracts totaling $36 million. Besides, new projects in agriculture, electric power and telecommunication technology are under consideration now.
ARKA – Armenia’s national debt already exceeds 50% of its GDP and continues to grow. How does EDB assess the creditworthiness of Armenia as a borrower?
A. Belyaninov – Now there are no signs that the national debt is going to grow. Incidentally, in the second quarter, according to the Ministry of Finance of the Republic of Armenia, the state debt decreased by 183 million US dollars. The situation seems to be under the control of the Ministry of Finance.
ARKA - The Russian ruble began to depreciate on the news of new US sanctions against Russia. How can this depreciation affect the currencies of the EDB member countries, and in particular, how will the Armenian drams react to this pressure? Can a wave of devaluations similar to the one in 2014-2015 repeat?
A. Belyaninov – A similar situation in the foreign exchange market we observed in April of this year, when the impact of new sanctions was reflected in a temporary increase in volatility in the stock market and, as a result, the ruble lost some of its value. After the initial depreciation in April, the ruble regained some of its positions - we can expect that under a similar scenario the ruble will be able to strengthen against US dollar again.
ARKA – Amid currency shocks, the question of refusing US dollar calculations has been repeatedly raised. Do you think it is possible? Can the settlement in the national currency become a starting point in the course of trade transactions across the Eurasian Economic Union?
A. Belyaninov - According to the Eurasian Economic Commission, the share of the dollar in trade operations dropped across the EEU over the past five years from 30% in 2013 to 18.3% in 2017.
ARKA – Today there is an open trade war in the global trade, marred by exchange of sanctions. What are the risks for world trade in this connection, how can these processes affect the member countries of EDB?
A . Belyaninov - The development of protectionism can reduce the potential of foreign trade and exports for all countries, not only for EDB members. In these circumstances, one of the ways to compensate for this kind of negative influence is to continue the course of economic integration and interaction between EDB member states. -0-
A. Belyaninov - According to the Eurasian Economic Commission, the share of the dollar in trade operations dropped across the EEU over the past five years from 30% in 2013 to 18.3% in 2017.
ARKA – Today there is an open trade war in the global trade, marred by exchange of sanctions. What are the risks for world trade in this connection, how can these processes affect the member countries of EDB?
A . Belyaninov - The development of protectionism can reduce the potential of foreign trade and exports for all countries, not only for EDB members. In these circumstances, one of the ways to compensate for this kind of negative influence is to continue the course of economic integration and interaction between EDB member states. -0-
ARKA - Mr. Belyaninov, in the light of the political changes that have taken place in Armenia, what challenges the Armenian economy can face and which are the key economic policy issues that should be prioritized by the government?
A. Belyaninov - Our bank is a financial, not political institution. Therefore, no matter what kind of challenges an economy is facing, we are ready to offer our capabilities and competence in helping solve financial problems. Naturally, we are interested in the effective economic development and stability of Armenia. Our analysts are ready to provide recommendations, if there is a request from Armenia.
ARKA - In its latest survey unveiled in June, the EDB raised the forecast for Armenian GDP growth for this year to 5.6%. Are you going to revise this forecast because of the political changes in Armenia?
A. Belyaninov - According to the Statistical Committee of the Republic of Armenia, economic activity in the country is at a rather high level. Economic activity growth indexes in the first half of the year indicate that Armenia is the leading country in terms of GDP growth among the EDB member states. From our point of view, Armenia's GDP growth forecast as a whole is in line with current trends in the economy.
ARKA - EDB's investment portfolio in Armenia stands at $185.6 million. Should we expect the ADB to expand its operations in Armenia in the context of the opening opportunities and the surge of interest towards Armenia from a number of foreign investors? And apart from financial assistance , what kind of other assistance will the EDB provide to Armenia?
A. Belyaninov - As part of its investment activities, the bank has signed earlier this year two new contracts totaling $36 million. Besides, new projects in agriculture, electric power and telecommunication technology are under consideration now.
ARKA – Armenia’s national debt already exceeds 50% of its GDP and continues to grow. How does EDB assess the creditworthiness of Armenia as a borrower?
A. Belyaninov – Now there are no signs that the national debt is going to grow. Incidentally, in the second quarter, according to the Ministry of Finance of the Republic of Armenia, the state debt decreased by 183 million US dollars. The situation seems to be under the control of the Ministry of Finance.
ARKA - The Russian ruble began to depreciate on the news of new US sanctions against Russia. How can this depreciation affect the currencies of the EDB member countries, and in particular, how will the Armenian drams react to this pressure? Can a wave of devaluations similar to the one in 2014-2015 repeat?
A. Belyaninov – A similar situation in the foreign exchange market we observed in April of this year, when the impact of new sanctions was reflected in a temporary increase in volatility in the stock market and, as a result, the ruble lost some of its value. After the initial depreciation in April, the ruble regained some of its positions - we can expect that under a similar scenario the ruble will be able to strengthen against US dollar again.
ARKA – Amid currency shocks, the question of refusing US dollar calculations has been repeatedly raised. Do you think it is possible? Can the settlement in the national currency become a starting point in the course of trade transactions across the Eurasian Economic Union?
A. Belyaninov - According to the Eurasian Economic Commission, the share of the dollar in trade operations dropped across the EEU over the past five years from 30% in 2013 to 18.3% in 2017.
ARKA – Today there is an open trade war in the global trade, marred by exchange of sanctions. What are the risks for world trade in this connection, how can these processes affect the member countries of EDB?
A . Belyaninov - The development of protectionism can reduce the potential of foreign trade and exports for all countries, not only for EDB members. In these circumstances, one of the ways to compensate for this kind of negative influence is to continue the course of economic integration and interaction between EDB member states. -0-
A. Belyaninov - According to the Eurasian Economic Commission, the share of the dollar in trade operations dropped across the EEU over the past five years from 30% in 2013 to 18.3% in 2017.
ARKA – Today there is an open trade war in the global trade, marred by exchange of sanctions. What are the risks for world trade in this connection, how can these processes affect the member countries of EDB?
A . Belyaninov - The development of protectionism can reduce the potential of foreign trade and exports for all countries, not only for EDB members. In these circumstances, one of the ways to compensate for this kind of negative influence is to continue the course of economic integration and interaction between EDB member states. -0-
