Important and urgent issues may be solved through borrowed funds: economist

If direct investments create certain difficulties, the important issues may be settled through borrowed funds, economist Vardan Bostanjyan told Aysor.am, referring to the facebook post of ex-Prime Minister of Artsakh Arayik Harutyunyan where he says that it is impossible to ensure necessary volumes of economy by direct investments only but involve borrowed funds too.

The economist said with the engagement of borrowed funds they face a number of risks. In such case, according to Bostanjyan, it is necessary to think over approaches, schemes and principles according to which these borrowed funds must be used rationally and effectively.

“Unfortunately, as of now we cannot give accentuated guarantees. If we do not name it investment activity and imagine only those loan means we received from international financial organizations and remember the 7 billion exceeding state debt the involvement of borrowed funds will be a right step,” he said, adding that the funds are not being used effectively.

The economist stressed that by involvement of borrowed funds it is possible to implement investment projects but at the same time be convinced in the investment project to be able to return the borrowed funds.

“As far as we have not high level of institutional and legal regularity, additional risks will always be. In countries where everything is regulated the investment projects are being implemented with the equality principle trough borrowed means,” he said.