ARMENIA A BANKING CENTER
Story from Lragir.am News:http://www.lragir.am...nomy/view/29454
Businessman Khachatur Sukiasyan came up with a proposal on how to
make Armenia a banking center. Khachatur Sukiasyan noted that it
is necessary to advertise the Armenian banking system at least in
the CIS to convince people that businessmen can keep their money in
Tigran Sargsyan put forth the idea of developing Armenia into a
financial center during the first months of his office. But the process
didn't continue. The global crisis and the economic decline are good
excuses but Tigran Sargsyan used to say that the capital which was
escaping the global crisis could find a refuge in the Armenia "harbor".
But the ships, not even the boats of the world capital sailed towards
the Armenian harbor.
Why? Khachatur Sukiasyan also wonders what hinders the Armenian
banking system, which is successful enough to help render Armenia a
The answer is that the success of the banking system does not count
if the overall economic situation is uncertain. The general economic
situation determines the international image of the banking system.
Consequently, in order to become an international center of something,
Armenia first of all needs full modernization to be credible. Even
if the sea is calm, ship owners are interested in the situation and
conditions on the land, on how and who rules there. The sea may be
calm but they may encounter a surprise on the land.
In this sense, Armenia is a country which does not inspire hope
simply because it has unilateral dependence on Russia in economic,
political and security issues. In this case, it is all the same if
the money is kept in Armenian or Russian banks.
In order to become a regional center of something, Armenia needs to
solve the issue of sovereignty or at least the issue of diversification
of economic-political foreign relations and security.
This question may be resolved only with the help of modernization.
Armenia's domestic situation does not allow for making serious
decisions on the prospect of diversification. A bigger issue is
who makes decisions and whether they realize the necessity of such
decisions. In other words, one of the elements of modernization should
be formation of "elites" both in the government and opposition.
The banking system in Armenia has the technical and economic premises
to be a financial center but first it is necessary to resolve the
issue of modernization.