Azernews.Az

By Nazrin Gadimova

At a time when the Armenian president is traveling around the world to pursuade the business people to invest in his country, Moody’s has made an unfavorable forecast in regards of Armenia.

Moody's Investors Service has warned the international entrepreneurs about the increased risk of investing in Armenia.

The agency downgraded Armenia's long-term issuer and senior unsecured debt ratings to B1 from Ba3.

Moody’s report on Armenia indeed was based on economic fluctuations in Russia, major ruler of the post Soviet nation's economy. The agency reduced the already weak indicators of Armenia, thus sending a message to international investors.

Providing the important indicators of international investments, rating agencies help investors to determine further steps in relation to a particular country.

Moody’s report was an unpleasant surprise for Armenia, which needs foreign investment as ever to compensate heavy losses of its weak economy.

President Serzh Sargsyan's recent statements on the upcoming meetings in an effort to deepen external economic relations indeed testify how urgently the nation needs investments.

During the meetings held in Iran, Austria, Germany and France Sargsyan appealed to international entrepreneurs to invest in his broken-down country.

While the Armenian leader intensifies its actions to attract foreign investments, by this report the agency actually does not advise to trust the messages of Serzh Sargsyan.

The world's well known expert on economy in fact expressed political distrust in the president's actions. Furthermore, many understand that Sargsyan’s statements are insignificant and will not be transformed in real actions.

Of course, one does not need to be an international rating agency to conclude, understand and fix the negative figure of this ratio.

The political and economic situation remains vulnerable in Armenia, which could be described as a decay of the country. Various international organizations make unfavorable forecasts on the nation's economic situation.

The international community and local experts urge that corruption and abuse of power are the real dominating factors for such situation. Even though Armenia has made several anti-corruption efforts, the de facto situation on the ground remains very problematic.

Foreign investors completely understand economic situation in Armenia and realize a deep institutional, political and economical corruption that enveloped the country’s economy.

Therefore, this conclusion of the Moody's Investor Service is a clear message addressed not to the foreign investors, but to Serzh Sargsyan, who is trying to cover the economic dislocation with his attractive statements.

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Nazrin Gadimova is AzerNews’ staff journalist, follow her on Twitter: @NazrinGadimova

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