GOVERNMENT OF ARMENIA NOT TO REDUCE SOCIAL COSTS - MINISTER OF LABOR AND SOCIAL AFFAIRS

/ARKA/
July 31
YEREVAN

YEREVAN, July 31. /ARKA/. The Armenian government has set strong
to fight the crisis and has no plans to reduce the social spending,
Minister of Labor and Social Affairs of Armenia Gevorg Petrosyan said
on Friday.

He noted that the global financial and economic crisis has defied
the world, including Armenia, threatening, especially the socially
vulnerable layers of population.

"The Government of Armenia has already taken all possible measures and
mechanisms to overcome the crisis difficulties as quickly as possible,"
Petrosyan said.

He noted that the government will not reduce any money that was
provided for social services in Armenia.

Moreover, the Armenian Government is making efforts to raise additional
funds for the social services.

"The Armenian government pays particular attention to the financing of
the social sphere; however, the budget itself will be insufficient to
overcome the crisis. We need assistance from the donor organizations",
the minister said.

To implement the anti-crisis measures of the Government of Armenia,
operational headquarter has been set up.

As part of the anti-crisis measures, Armenian government has already
provided guarantees to a number of Armenian enterprises. In particular,
government guarantees of 20 billion drams ($ 54.8 million) were given
to Armenian constructors.

In addition, on the 12th of June Russia provided $ 500 million bailout
loan to Armenia, the International Monetary Fund intends to provide $
822.7 million as assistance and the WB will transfer $ 545 million
in 2009-2012.