Bagratyan’s ‘Awkward’ Question

Bagratyan’s ‘Awkward’ Question

Story from Lragir.am News:

Published: 21:31:53 – 12/09/2012

During the question and answer session of the National Assembly the
ex-prime minister, MP Bagratyan had an interesting dialogue with the
minister of finance Vache Gabrielyan. Bagratyan inquired why the big
loan from Russia was directed to the banks, the financial system.

`Expensive loans are borrowed from another state and given to the
banking sector as resource,’ Bagratyan said. Banks gave all the money
to the real sector. The government borrows and gives to the subjects
to lend. The government borrows the money and identifies the sector.
It can be export, SME development. The Central Bank identifies the
criteria while banks decide who to give the loan, the conditions.

Why were the loans invested in the economy in the years of the
financial and economic crisis, Bagratyan retorted?

`How come economy declines by 15% while banks grow by 50%?’ Bagratyan said.