Who Is Pushing Introduction of Mandatory Funded Pension?
The Constitutional Court will review the mandatory funded pension law
at the end of March. By that time, Serzh Sargsyan is going to find out
the reasons why the government has failed its commitment to ensuring a
7% economic growth. Besides, the IMF will discuss in March the next
big arrangement for Armenia.
At first sight, there is little in common between these processes but
in reality all these processes depend on the mandatory funded pension.
In regard to Armenia’s request to the IMF for the next arrangement,
Mark Horton, IMF Mission Chief for Armenia, stated in Washington: “The
launching of the new pension system in early 2014 is expected to
provide an impulse to financial sector development; program measures
in other areas will support financial sector deepening.” This means
that the IMF will follow the decision of the Constitutional Court and
make a decision accordingly.
Obviously, the Armenian government finds it increasingly hard to raise
money inside and outside the country. Despite the Russian bias of the
foreign policy, Armenia still expects money from the international
foundations. First, because Russia does not give, only grabs money.
Second, the international financial organizations are interested in
the growing foreign debt of Armenia.
The foreign debt is an important political factor of influence.
Zbigniew Brzezinski said: “Since $500 billion owned by Russia’s
so-called elite is held in our banks, you should first understand
whose elite it is!”
The same concerns Armenia, and the international funds will continue
boosting Armenia’s debt, which may help achieve change of the
geopolitical balance at some point. Although, perhaps it is not
accidental that on these days the depositories of Armenia and Russia
decided to make a deal on cooperation.
However, the international financial organizations are going to spend
others’, not their money, preferably the Armenian money. Apparently,
the international financial organizations demand that the Armenian
government not only rely on credit but also accrue financial reserves.
The international actors have hinted, moreover, they have announced
bluntly that the government should tax the immense assets of the
Armenian oligarchs. Apparently, however, the government cannot do and
is therefore thinking of new methods of raising money.
The only entity whose pockets the government has free access to raise
funds is the population of Armenia. Therefore, it was decided to
introduce the mandatory funded pension which will bring immense and
renewable resources.
The Central Bank of Armenia has informed that EBRD, as well as IFC
have issued bonds in Armenian drams for an amount of 4 billion drams.
The Central Bank states openly that the pension funds could invest the
pension amounts in these bonds. For its part, the received funds will
be spent on the social needs of the government.
In fact, the international organizations are becoming participants of
introduction of the mandatory funded pension of Armenia and mandatory
deprivation of the citizens of Armenia of their income. And now,
together with the Armenian government, they lobby the robbery of
citizens, thereby protecting the oligarchs who do not keep their
capital in Armenia for economic, criminal or political reasons to
ensure its financial reserves.
Naira Hayrumyan,Political Commentator
15:09 06/02/2014
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