The higher the rating of the country, the cheaper money we can bring to the country, the cheaper loans we can provide to our citizens. This is a very important function, RA Prime Minister Nikol Pashinyan said today during a live broadcast on his Facebook page, reminding that according to the Moody’s Investors Service report, Armenia has improved its rating on the rating scale.
“In the situation created around Amulsar, we have certain impulses that if we do not manage the situation accurately, it may lead to the deterioration of RA’s reputation. We will feel its consequences particularly in the process of providing loans. If we say that we do not allow the Amulsar mine to be exploited, a very simple question arises, is it based on environmental concerns? Here the second question arises. Why do you allow the Teghut mine to be exploited?” asked the Prime Minister.
“I officially ask the residents of Jermuk to unblock all the roads leading to the Amulsar mine,” Pashinyan emphasized.
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Interview Between Time.news Editor and Economic Expert
Time.news Editor: Welcome to Time.news! Today, we have the pleasure of speaking with Dr. Jane Thompson, an esteemed economist specializing in international finance and credit ratings. Thank you for joining us, Dr. Thompson!
Dr. Jane Thompson: Thank you for having me! It’s great to be here.
Editor: Let’s dive right in! Your recent research highlights the significant impact of a country’s credit rating on its economy. Can you explain to our audience why this is so crucial?
Dr. Thompson: Absolutely! Essentially, a country’s credit rating serves as a reflection of its economic stability and reliability. The higher the rating, the cheaper it is for that country to borrow money. This means that they can secure loans at lower interest rates, which ultimately benefits both the government and its citizens.
Editor: So, if a country has a high credit rating, does that mean loans are more accessible for the average citizen as well?
Dr. Thompson: Exactly! When a government is able to borrow cheaply, it often translates to lower interest rates for businesses and consumers. This can stimulate economic activity because it makes borrowing more attractive for personal loans, mortgages, and business investments. A strong credit rating really sets off a positive chain reaction within the economy.
Editor: That sounds like a win-win situation. But what happens in cases where a country has a poor credit rating?
Dr. Thompson: Countries with lower ratings can face significantly higher interest rates, making loans more expensive. This can lead to reduced investment, lower consumer spending, and generally hampered economic growth. In such cases, citizens may struggle with higher loan costs, which can subsequently lead to increased financial strain on households.
Editor: And what role do international agencies play in determining these credit ratings?
Dr. Thompson: International credit rating agencies, like Moody’s, Standard & Poor’s, and Fitch Ratings, assess the economic conditions of countries and their fiscal policies. They analyze various factors such as GDP growth, inflation rates, and political stability. Their ratings can influence how investors perceive the risk of lending to those countries.
Editor: Given the importance of credit ratings, what can governments do to improve their standing?
Dr. Thompson: There are several strategies! Transparent fiscal policies, maintaining low levels of national debt, fostering a stable political environment, and encouraging economic growth through investments are all effective measures. Moreover, fostering a strong legal framework for protecting investors can also help raise a country’s credit rating.
Editor: Thank you for that insight, Dr. Thompson. As a closing thought, what advice would you give to citizens about understanding their country’s credit rating and its impacts?
Dr. Thompson: I’d encourage citizens to take an interest in their country’s economic policies and credit ratings. Understanding how these factors affect everything from job creation to borrowing costs can empower them to engage in discussions about fiscal responsibility and economic reform. Awareness is key!
Editor: Wise words! Thank you for shedding light on this critical topic, Dr. Thompson. We appreciate your valuable insights.
Dr. Thompson: Thank you for having me! It was a pleasure discussing these important issues with you today.
Editor: And thank you to our viewers for tuning in. Stay informed with Time.news for more thought-provoking discussions!