ArmInfo. The government does not yet have the final figures for the damage caused by the flood in the Lori region, which would allow us to more accurately assess the volume of expenses and understand how to respond to the disaster. Governor of the Central Bank of Armenia Martin Galstyan stated during a press conference on June 11, referring to the results of discussions with the RA Ministry of Finance. "But it is obvious that the scale of the disaster is large," he said.
Referring to the materialization of fiscal risks in this regard, the Central Bank President noted that as a result of the increase in state expenditures, additional incentives are expected to be developed, and fiscal impulses will be moved to a positive zone.
Galstyan noted that after the natural disaster, 53 road sections were damaged, more than 20 bridges were destroyed. "You understand at first glance that the consequences are significant. And this is not counting the amount of damage caused to households' property," he said.
Regarding the situation with individuals and entrepreneurs who had credit obligations, the head of the Central Bank noted that these issues need to be considered in detail, including to understand the possible participation of banks in these programs. But, according to Galstyan, to make more specific decisions, at the very least, one should have an objective overview.
In late May, torrential rains hit the north of Armenia, which led to the Debed and Aghstev rivers overflowing their banks and flooding in the Lori and Tavush regions. As a result, many roads and bridges were destroyed, houses were flooded, and many problems arose in terms of communication infrastructure, power lines, gas pipelines, drinking water and irrigation systems. More than 400 people were evacuated, and the death toll reached 4.
