Armenia’s former Prime Minister says continuation of global crisis possible

PanARMENIAN.Net - Armenia’s former Prime Minister Hrant Bagratyan said that the global financial crisis will possibly continue.

He named three reasons, due to which the crisis can’t be thought as overcome. First, banks not only grant loans to business, but also become its shareholders; second, largest corporations will not be able to meet their obligations to pension funds; third, inconsistence of currency during budget’s formation.

According to Bagratyan, the new crisis will reach Armenia in six month and its new wave will be stronger that is reasoned by decrease in prices for copper and molybdenum.

He added that many experts were predicting sharp centralization of the world economy, as well as “explosion” of economy in countries of the Central Europe, as average pensions are rather high in these countries.

“Due to this, it is possible that a new wave of the crisis will reach Armenia in September-October 2010,” Bagratyan said, adding that the government does not take steps to prevent it.

Besides, the former PM advised the population to purchase precious metals, specifically palladium, to be able to withstand the crisis challenges.