The expected recession in Armenia for the current year, in other words, the negative trends are also due to our country’s becoming a member of the EaEU. Responding to the Fitch rating agency’s assessments, says economist Ashot Yeghiazaryan in the interview with Aravot.am. Mr. Yeghiazaryan, recalling the recently published Moody’s rating agency’s negative projections about our country said that there is a military and political shade in the Fitch’s assessments. For example, the reason that recession is expected in Armenia is associated with the dependence on Russia, in particular, several factors are mentioned, including private remittances, which are reduced. I consider it a very important point that the negative trends are conditioned by Armenia’s becoming a member of the EaEU, resulting in restriction of Armenia’s economic and financial capabilities. ”
The fact that now Fitch is emphasizing the factor of security, as interpreted by the economist, the reason is that Armenia’s security is largely dependent on Russia, which, in the opinion of Ashot Yeghiazaryan, also negatively affects the ratings of the country. “The negative trends in Russia will continue, and Armenia, being dependent on Russia, will also have a negative result. If the investors are fleeing from Russia and withdrawing the money, then the same will happen to us, as Armenia is one of peripheral countries under the dependence of Russia. Armenia will be considered to be in the field of risks for investments. Sanctions are imposed against Russia, it is under the international isolation, all of this are obstacles, in addition, no investments will be made in a country which is not safe, it is very important for the investments that the country is stable and secure.”
Note that Fitch has downgrades the ratings of Armenia’s long-term foreign and local currency default issuer, from «BB-» level to «B+», and the rating outlook as “Stable”.
Lusine BUDAGHYAN
