Former RoA Prime Minister Hrant Bagratyan stated that Armenia's economy would witness a drop of at least 6.5 - 12%. He made the prediction at a press conference held earlier today. "The crisis has entered the 3rd stage which will bring about serious budgetary and banking problems. The crisis exposed that incorrect type of development that Armenia has seen in the past ten years. There is no manufacturing and risks aren't diversified in the economy. While the country doesn’t have a heavy debt burden, nevertheless, I think that here the crisis will enter a 4th stage," said Mr. Bagratyan, adding that the government is assisting those sectors that brought on the problem and not those sectors where a problem doesn't exist. The former prime minister criticized the anti-crisis measures enacted by the government and pointed to the assistance given the mining sector as an example. He said that he wasn't sure where the government's $10 million wound up in the mining sector. "If they gave it to the Kajaran mining concern, you know that Kajaran has serious issues because it was a 'false sale'. We have serious suspicions that Robert Kocharyan, the former Armenian president is somehow involved in Kajaran. Kajaran produces 80% of Armenia's copper and molybdenum. It was sold in 2004 and was the first time our national resources were sold for nothing in return. It operated for 2-3 years and made some $130 million. Now it has difficulties selling its product. Why are we assisting it? Are we merely assisting an individual? Who is the real owner of Kajaran?" noted Mr. Bagratyan. Mr. Bagratyan is also convinced that Armenia's currency isn't on a floating rate. "According to our information the RoA Central Bank is still intervening in the exchange market but on a smaller scale. I predict that come June-July, the dollar will show signs of rising and the dram will witness a serious drop." Asked about statements made by the World Bank and IMF that Armenia is executing a floating rate policy, Mr. Bagratyan responded that the IMF "doesn't work on our behalf"; they come here and at most spend 1-2 months. Regarding the government's social policies, Mr. Bagratyan stated that he advised the Armenian government don't to enter the crisis with a flat tax system but rather a progressive one. The government didn't agree to his plan. "Today, an individual making $10,000 is paying 20% tax and so is a person making $200. We were the ones who came up with the flat tax but if we are elected to office we'll enact a progressive tax. The poor won't be paying 20% but 15%," Mr. Bagratyan said.