Half of the 125,000 enterprises registered in Armenia are not operating, Hovik Musayelyan, Executive Director of Synopsys Armenia, stated at today’s roundtable discussion on Armenia’s further economic policy.

One of the main reasons is strictly regulated high interest rates on bank loans. Comparing the Armenian and Georgian economies, Musayelyan pointed out much lower corruption risks in Georgia. Armenia has much to learn from its neighbor from the economic viewpoint, he said.

Responding to Musaelyan’s criticism, RA Minister Tigran Davtyan called upon a representative of the Central Bank of Armenia (CBA) though the RA Ministry of Finance contributes to higher interest rates even more than the CBA. By issuing bonds with an annual interest rate of 14-15 per cent, the Ministry gives regular “opium injections” to the banking system, which is unwilling to work at normal interest rates.

The CBA representative Ashot Mkrtchyan pleaded that the CBA wants low-interest credits, but high-interest deposits. According to his, high-interest deposits and economic risks result in higher-interest credits.