Exclusive interview with Dmitry Gritskevich, chief analyst of Promsvyazbank’s Analytical Department

ARKA—Mr. Gritskevich, what development stage has Armenian market reached?

D. Gritskevich - The available experience shows that Armenian market is getting increasingly open to cooperation and I think it is a very positive trend. I think that this trend will eventually make Armenian market comply with international standards and that will certainly have a very positive effect on its ongoing development.

ARKA-Which of former Soviet countries making the Commonwealth of Independent Countries (CIS) do you think is moving in the right direction in terms of economic development and whose experience Armenia could use?

D. Gritskevich - Regarding the CIS market, I would like to single out Kazakhstan, which has taken the course of Europeanizing its economy by shifting to international accounting and auditing standards for banks, doing it earlier than Russia. When talking about international accounting and auditing standards for banks we mean in the first place a full and precise reporting about all indicators. This is very important for attracting foreign investments to give it a powerful development boost to economy. I think, Armenia should pay attention to Kazakhstan’s experience. During the economic crisis Kazakhstan attracted new borrowings in the from of Eurobonds which was instrumental in salvaging the banking system and thwarting a liquidity crisis. This has given a boost to securities market bringing fresh investments.

ARKA- What could give a push to Armenian economic development?

D. Gritskevich – Investments attracted thanks to open and free international partnership and certainly the ability of Armenian authorities to take correct and duly decisions. As an example of wrong performance I would like to cite Greece’s example that first asked for 7-10 billion euros to save its economy but in 4 months the situation worsened as much as it had to ask for 100 billion more. Today a country can not alone exit from critical situations because we are all part of the globalizing world. Countries can not advance without credits because their own earnings are insufficient.

ARKA- But on the other hand, loans from international lending organizations often create serious problems for governments.

D. Gritskevich – You are right. Debt is evil for any government. But without loans it is impossible to move ahead. I am not aware of all details of Armenia’s economic policies that borrows from World Bank and IMF, but I can say with certainty that the loans spent on concrete goals bring about eventual positive results. -0-