RA borrows 39 million euros for something that is absolutely not urgent

Yesterday it became known that the Armenian government is taking a new loan of 39 million euros from the European Bank for Reconstruction and Development.

What is that loan for? Some customs terminal for imports and exports will be built, which will be located on the North-South highway, probably in the parts of Proshyan village.

The question arises, did the Armenian government not have 39 million euros to build the terminal itself, instead of increasing the state’s foreign debt? Well, the government probably thinks that it is better to spend the money of the taxpayers of Armenia on bonuses, and to spend other important expenses by increasing the external debt on the shoulders of the taxpayers.

But the question arises, what is the so-called center of foreign economic activity needed for? Does Armenia’s economy have the volume to provide sufficient workload for such a center? To put it mildly, no. So, let’s repeat the question: why is that center being built? Is there a visible prospect that there will be such a volume of cargo transportation on the North-South highway of Armenia that there will be a need for such a center? To put it mildly, there is no such visible prospect, if the north-south should be built for at least five or six years, according to the preliminary estimate.

Therefore, it is obvious that the Armenian government is borrowing 39 million euros for something that is absolutely not urgent from the point of view of Armenia’s needs.

Armenia’s economy needs investments that provide stable jobs, in the case of the “economic policy” of the Armenian government, only the foreign debt is growing steadily.

Analyst Hakob Badalyan

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