The financial system, particularly banks and their affordable loans, must become the driving force for the economic revolution. This is what Prime Minister Nikol Pashinyan said in response to MPs’ questions during the discussion on the report on the activities of the government in 2018 at the National Assembly.
According to him, the government is constantly setting objectives for the banking system. “Banks need to provide funding and make loans affordable,” Pashinyan explained.
The Prime Minister stated that the next source of funding is external sources of finance.
“Armenia has presented 13 projects to the European Union, and it is safe to consider some of them mega-projects. However, our EU partners state that Armenia needs to make investments since it is hard to imagine that an international organization will provide 100% funding for a particular project,” Pashinyan said.
As far as the fears of increase of state debt as a result of engagement of external sources of finance are concerned, the Prime Minister assured that the increase of debt wouldn't pose any threat, if there is an active struggle against shadow economy.
According to Pashinyan, experts of the International Monetary Fund believe there is 50-60% of shadow economy in Armenia.
“If the government starts leading a struggle against shadow economy, Armenia’s GDP will grow to a certain extent, and the country’s debt will go down from the 60% threshold of the GDP,” the head of government concluded.