Tigran Sureni Sargsyan (; born 29 January 1960) is an Armenian political figure who was Prime Minister of Armenia from 2008 to 2014. Previously he was Chairman of the Central Bank of Armenia from 1998 to 2008. After leaving office as prime minister, he served as ambassador to the United States from 2014 to 2016 and as chairman of the board of the Eurasian Economic Commission from 2016 to 2020.
Biography Tigran Sargsyan was born on 29 January 1960 in the city of Vanadzor, Armenian SSR. He was still a child, when his family moved to Yerevan, where in 1967–1977 Sargsyan received his primary education at Yerevan Pushkin School No. 8.
Education Tigran Sargsyan entered Yerevan Technical College No. 14, graduating in 1978. The same year Sargsyan entered Yerevan Institute of National Economy, Faculty of Economy and Planning. In 1980 he entered Leningrad Financial and Economic Institute after N. A. Voznesenskiy, from which he graduated in 1983.
In 1987 Tigran Sargsyan received his PhD at Leningrad Financial and Economic Institute, where he defended his thesis titled "Regional social-economic development planning on Armenia's example".
In 1994 Tigran Sargsyan studied at the Faculty of "Law-making Activity," in the International Law Institute, Washington, D.C., United States.
In 1996–1997 he studied "Effective Banking Management" at the Institute of Economic Development, World Bank, Washington, United States.
Career start After receiving the PhD degree in economics he returned to Armenia in 1987 and became a senior researcher and head of the Group of International Economic Relations at the Research Institute of Economy and Planning of Armenia, where he worked until 1990.
From 1988 to 1993 he served as the chairman of the national council of young professionals and scientists. From 1990 to 1991 he worked as a coordinator for the regular seminars on economic reform organized for the bankers.
Political career Tigran Sargsyan was one of the founders of the party "National Democratic Union" in 1991.
In 1993–1995 Tigran Sargsian was elected as a member of the Supreme Council of the Republic of Armenia within "National Democrats" fraction headed by Shavarsh Kocharyan. Sargsyan became chairman of the Standing Committee on Financial-Credit and Budgetary Affairs and was the youngest head of the chairman in the Parliament. In this position he had a significant contribution to the conduct of Armenian Dram – national currency into circulation.
National Currency Introduction Despite the fact that he was the representative of the opposition in parliament, Sargsyan was appointed as a chairman of the Standing Committee on Financial-Credit and Budgetary Affairs of the Parliament of Armenia.
Together with the chairman of the Central Bank of Isaac Isaakyan and Finance Minister Levon Barkhudaryan, Tigran Sargsyan was appointed as a co-chairman of the State Commission for regulation of currency, created by the Supreme Council of the Republic of Armenia on 13 October 1993. Commission adopted more than 20 important decisions and on 22 November 1993 Armenian dram – national currency was put in circulation.Central Bank of Armenia. Development of financial system Issued banknotes and coins had a nominal value of 10, 25, 50, 100, 200 and 500 drams.Central Bank of Armenia – Collector coins of the Republic of Armenia
Activity since 1995 From 1995 to 1998 he was the director of Scientific Researches Institute of Social Reforms.
From 1995 to 1998 he was the chairman of Armenian Banks Association.A STATISTICAL ANALYSIS OF BANKS IN ARMENIA Sargsyan occupied the post of Chairman of the Central Bank of Armenia (CBA) from 3 March 1998 and was reelected by the Armenian National Assembly as CBA chairman for a second seven-year term on 2 March 2005. As many as 92 MPs participated in the vote, of which 86 cast their vote for his candidacy.
Chairman of the Central Bank (1998–2008) On 3 March 1998 Tigran Sargsyan was elected the chairman of the Central Bank of Armenia, which significantly changed the situation in the banking sector of Armenia. In particular, in that very year the international accounting standards were introduced. In 2005, Sargsyan was re-elected as a chairman of the Central Bank, for the second term.
From 1998 to 2008 his signature was depicted on the currency in Armenia.
Reforms In 1998 Tigran Sargsyan introduced the compulsory use of international accounting standards in Armenia. Until 1998, the Armenian Soviet standards were used, and the reports did not meet the modern requirements. The system still operates in Armenia up today. In 1999 Central Bank of Armenia introduced a system of electronic payment, entitled CBA.NET. This was a RTGS Payment System, and it automates the cash flow between the Armenian banks. Until then, any transactions between the banks were made using paper handling. The system operates in Armenia up today. In 2001 Central Bank of Armenia introduced the National Payment System called ARCA (Armenian Card), which later began supporting local ARCA cards. ARCA also became a platform for the operations of Mastercard, Visa, American Express and Diners Club, using a single processing center, technology and software solutions.Central Bank of Armenia – Payment Card System
As a head of the Central Bank. Sargsyan initiated process of crystallization of banking sector from unfair business and crime. In 2002 the amendments on the Law on the Central Bank of Armenia and the Banking Act were adopted. The changes entitled The Board of the Central Bank, to prevent crime acquisition of bank assets and lending institutions.
In the future regulatory framework it was possible to adjust the process of tracking the turnover of criminal assets in banks and credit organizations, as well as the funds used to finance terrorist activities or money laundering. As a result, a number of unscrupulous banks and organizations were closed. Credit Yerevan, the United Bank, Land Bank, Credit Service, Trust, AgroBank, Shirak Invest and others were dissolved. As a result of investigating the flow of funds from organizations engaged in unfair practices, it was possible to refund all the deposits to the citizens. By 2004 the process of recovery of the banking system was completed.СТРАТЕГИЯ ЦЕНТРАЛЬНОГО БАНКА РЕСПУБЛИКИ АРМЕНИЯ на 2015—2017 гг.
In 2002 Armenia adopted amendments to the Law of the Republic of Armenia on Licensing. The list of the organizations to be a subject of licensing included credit organizations, which involved in money transactions, clearing, processing card payments, and others.
The deposit insurance system (2004) In 2004 a law on compulsory insurance contributions to citizens were adopted in Armenia initiated by Tigran Sargsyan. On the basis of this law in 2005 The Fund was established, which should refund deposits to the citizens. The fund was financed by deposits from all the banks and financial institutions. The maximum size of the contribution was 4 million drams to be increased in the future. Size of deposits in foreign currency was equal to 2 mln drams.
Building a mega-regulator of the financial system (2006) At 1 January 2006 the system of banking, insurance supervision and oversight of the securities market have been merged into a single system – a mega-regulator of the financial system. It introduced a unified system of financial regulation and risk-based supervision. The function of regulating the activities of all participants in the financial system and financial supervision was entrusted to the Central Bank of Armenia. The Central bank also became responsible for ensuring financial stability in Armenia.
Inflation targeting (2006) In 2006 under the leadership of Tigran Sargsyan, the legal acts were adopted to implement the policy of targeting monetary aggregates to inflation targeting strategy to publish analysis on the monetary policy of the Central Bank.
Scope of Insurance (2007) In 2007 the "Law on Insurance and Insurance Activities" were adopted, which was drafted in cooperation with the European Union.
Prime Minister (2008–2014) 9 April 2008 Tigran Sargsyan was appointed as the Prime Minister of Armenia,Marianna Grigoryan, "The Other Sargsyan: PM Tigran in, political "independent" to lead government", 11 April 2008. replacing Serzh Sargsyan in this position, who was elected the president of Armenia earlier that year. From 22 April new government started working, consisting of 18 ministries. The minister for territorial development combined position of the Deputy Prime Minister. The government included representatives of the parliament coalition from parties: Republican Party of Armenia, Prosperous Armenia, Armenian Revolutionary Federation and The Rule of Law.
Two months following the appointment of Sargsyan Russo-Georgian War bursts out which seriously hurt economy of Armenia blockaded by Turkey and Azerbaijan for more than 20 years, and 70% of imported products are from Georgia.
2008 Financial Crisis The next year after Sargsyan government start, second wave of the 2008 financial crisis reached Armenia, which led to 14.1% fall of GDP. Because of strong banking system of Armenia, the crisis did not hurt Armenian banks, but the main collapse occurred in the construction sector, where the decrease volume was 41.6%. Production tax rates reduced to 22.5%. The collapse in these two areas was more than 10-% decrease in general share of GDP.
Commenting on the Economic collapse Tigran Sargsyan said: "The Housing bubble that was inflated, burst, causing negative phenomenon". He also highlighted necessity to diversify the economy. Among causes of economic collapse were marked decrease in the level of foreign transfers, reduction of prices on the international market of raw, and in particular non-ferrous metals market got lesser interest in goods exported from Armenia, as well as reduced liquidity in the international market and the subsequent fall of investment level.
12 November 2008 Tigran Sargsyan presented anti-crisis program of the government. 4 December 2008 according to protocol decision of RA Government the list of anti-crisis measures was approved. Among the main activities were mentioned the following: Tax reform – simplification of tax administration, Customs reform – simplification of customs procedures, Improving the business environment – simplification of legal entities creating process Development of infrastructure – road construction, work in the field of electric power industry and energy supply Construction – providing state guarantees and subsidies to property developers Promotion of the real sector – participation in equity capital, loans, financing of business projects Social Projects
Supporting Real Economy Sector Following years, the government supported the real economy sector. Special committee was created to study individual business projects, granting support to the best ones. Support was provided to 24 successful projects out of 300 presented projects. Commission was operating to support small and medium-sized businesses, provided direct financial and advisory support to a number of companies throughout Armenia.
The result was that in 2010 and 2011 industrial production index growth was 9.7% and 14.1% respectively, occurring the best performance since 2004. As a result of investments into the real economy prevented large scale staff dismissal in industrial enterprises. Policy brought to number increase of industrial enterprises by 6.3%, and increase of the average wage in industrial enterprises for 60 thousand drams.
Infrastructure projects development In frames of anti-crisis measures development to infrastructure projects, building of roads, schools and hospitals was carried out around Armenia. Prior to 2011 following fulfillments were implemented: 2280 km of drinking and irrigation water lines built, 106 pumping stations for drinking water built, 209 reservoirs for drinking water built,