Armenia conducts negotiations with Russia over credit issue

According to the Armenian media, the country’s government is conducting unofficial talks with Russian authorities regarding the issue of $1 billion in credit to the country. This step has been taken by the Armenian government as a result of the refusal by the European Union to approve a $1.5 billion loan to the country. This money is urgently needed by the Armenian government, as next February, presidential elections will be held and the ruling government wants to reinforce its position. The Armenian opposition however, has challenged and criticized this move. They mention that currently, Armenia’s loans already have reached 43% of the country’s total GDP and this poses a serious threat to the country’s economy. MP Vardan Oskanyan believes that the loans received by Armenia over the last four years were not spent efficiently and did not result in the diversification of the economy.