YEREVAN. - Loans in Russian ruble are what the Armenian economy needs. Armenia’s “Prosperous Armenia” Party (PAP) MP Mikayel Melkumyan said in the parliament today at the debate on the final version of the Draft State Budget for 2016. Generally, PAP will give the government a chance and will support the Draft State Budget, he said.

According to the MP, in the condition of ruble’s fall against dollar for over 80%, and that of dram against dollar for 18%, the value of the Armenian export shouldn’t go up in ruble terms. Hence, Armenia must take a loan in Russian rubles, otherwise discrepancy between ruble proceeds and loan obligations in dollar or euro arises.

A number of mechanisms important for the economy were put in place this year. he said. Thus, exemption from taxes for companies in border villages came into force and the threshold of VAT exemption for import on the border has been lowered to zero in the framework of investment projects. However, according to Melkumyan, a number of other measures are also necessary.

In his words, state insurance of export should be proposed before and not after the export transactions, which will raise the reliability for business.  “Besides, it’s necessary to allow deferring the payment of customs duties for imported raw materials, so that it’s possible to pay retroactively following the sale of annual production,” Melkumyan said.