ARMENIA MAY RECEIVE STATUS OF COUNTRY WITH MARKET ECONOMY WITHIN YEAR

ARKA News Agency, Yerevan, Armenia
Sept 24 2007

Armenia may receive a status of a country with market economy within a year, Armenian Minister of Trade and Economic Development Nerses Yeritsian told journalists.

According to him, several economic issues are on the agenda of Armenia - EU discussions, among them establishment of a free trade regime, provision of an improved GSP (Generalized System of Preferences) regime, and recognition of Armenia as a country with a market economy.

These are long processes, Yeritsian said, but the declaring of a free trade regime and an improved regime of GSP are the most important ones for Armenia as they relate to the goods market.

"Yet, the most prospective issue that may be solved in the near future is the recognition of Armenia as a country with a market economy; in this we can achieve success in a half a year or a year if we make effective efforts," Yeritsian said.

According to him, the remaining issues, after a preliminary discussion, will be passed on to the President Robert Kocharian who is to raise them during his visit to Brussels in the first half of October.

Armenia ranked the 34th in the report of the World Bank and the International Financial Corporation "Doing Business 2007", taking the lead among the countries of the region and the Commonwealth of Independent States (CIS).

Based on the classification of "Indicator of economic freedom 2006" of 161 countries published by the Wall Street Journal and the Heritage Foundation, Armenia improved its position from the 42nd in 2005 to 27th.

According to the results of the research by the Heritage Foundation, the level of freedom of Armenia's economy is at 69.4% out of 100% possible. The business freedom index is 84.5%; the other indices are as follows: trade freedoms 75.6%, fiscal freedoms 93.1%, freedom from interference of state in economy 91.6%, monetary freedoms 79.7%, investment freedoms 60%, financial freedoms 70%, property rights 30%, freedom from corruption 29%, and freedom on labor market 80.9%. The document also says that a low inflation level is recorded in Armenia and that the country's banking sector is completely privatized and well managed.