International Investors Will Consider Armenia a Risky Environment: Vahe Hovhannisyan

The Minister of Finance, Vahe Hovhannisyan, does not rule out that due to the escalation of the conflict, international investors may start considering Armenia as a risky environment, which in turn will affect the interest rates on funds directed to Armenia.

There are certain reflections within the government regarding the possible impact of the situation in neighboring Iran. Hovhannisyan made these comments at a press conference held today.

He noted that the possible developments and risks are not reflected in the Medium-Term Expenditure Program (MTEP) approved at the government meeting on June 5. Instead, according to him, the document contains a section concerning possible risks which calculates various risky scenarios.

“According to one of these scenarios, economic growth could be 1.3 percent instead of 5.1 percent. As for the escalation between Iran and Israel, there are also phenomena that can negatively impact us, as well as those that could have a positive effect on us. Much depends on the degree and duration of the escalation,” said Hovhannisyan.

“We need to monitor developments and continuously understand what we should do to mitigate the impacts,” he added.