BAGHDASAROV COMPLAINS

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“The statements made by the government according to which Armenia has a stable banking system and may attract foreign investors is simply an attempt to turn the wish into reality,” stated today head of “Armavia” airlines Mikael Baghdasarov. According to him, foreign investors wish to make investments in Georgia and not Armenia. It is more beneficial to make investments in Georgia because the income tax and the VAT are lower. Baghdasarov says that Armenia’s banking system has its downsides. Instead of giving loans and circulating the money, banks are raising interest rates and cutting back on loans. “Our banking system has nearly 25,000,000 in capital and is much more like the branches of big banks’ branches,” said Baghdasarov adding that he doesn’t think it is useful to give advice to the executives. He foresaw the world economic crisis to hit Armenia in March. However, “Armavia” airlines are ready to resist the world economic crisis. In fact, it is going to try to benefit from it. According to Baghdasarov, the crisis period creates an impetus for newly created companies to develop and benefit from the bankruptcy of their competitors. “For example, “Armavia” plans on purchasing a couple of airplanes and add more flights,” said Mikayel Baghdasarov, adding that the company is currently negotiating with the “Airbus” and “Boeing” companies to purchase the “Boeing 777” and “Airbus 330” airplanes. The company foresees arranging flights from Yerevan to Los Angeles and Yerevan to New York in April 2009. The Yerevan-Dubai-Kalkata flight will be 7 days a week. Will prices go down? Baghdasarov did not comment on that and tied the reduction of air tickets with the rise and fall of the Euro. Baghdasarov on fuel Diesel prices have gone down abroad, while the price for diesel hasn’t changed much in Armenia. In response to this question, head of the largest fuel importer “Mika Limited” said that he sells 11,000 tons of fuel reserve, which he has purchased during the Georgian-Osetian war. As an oligarch, Mika Baghdasarov didn’t suffer losses because according to him, he doesn’t have any stocks. As owner of “Mika Cement”, Baghdasarov added that the company has reduced cement sales and reduced construction. At present, the factory is under reconstruction and Baghdasarov wants to reduce the price. According to Baghdasarov, contracts with workers will be in effect until January 2009 and until then the majority of them will receive a 25,000 dram salary. The “Mika Cement” owner plans to export cement to Russia despite the fact that, according to him, it is not beneficial because prices for cargo and gas have gone up.