300 TO BE PRIVATIZED

Lragir.am
12 April 06

On April 10 the National Assembly at last heard the Report on State
Property Privatization 2001-2003. The report was presented by Karineh
Kirakosyan, the head of the Department for Management of State
Property under the government of Armenia, who also presented facts
for 2004. During the discussion of such an important issue there were
hardly 20-25 members of parliament present, and from time to time two
or three oppositionists who have been announcing about illegalities
reported in the course of privatization.

By January 1, 2005 1925 medium-sized and big companies, 7266 small
objects and 80 unfinished constructions have been privatized. In 2004
companies were mostly privatized through direct sale and tender. 48
out of 69 were privatized by direct sale, 15 were put out to tender
and 6 were sold by auction. In 2004 privatization proceeds totaled
2.752 million drams and 45 million U.S. dollars. By January 1, 2005
privatization proceeds totaled 142.32 billion drams, 63.788 billion on
privatization certificates. Although in 2003 several times more state
property was privatized, privatization proceeds almost did not grow –
2.905 billion drams. The average price of privatization of a company is
35 million drams. 214 privatized companies were dissolved, 108 filed
for bankruptcy. In this period 6 nursery schools were privatized,
unused land of other educational institutions was alienated. 471
refugees and 71 residents privatized land.

Karineh Kirakosyan said about 300 companies failed to cover their
liabilities, some companies failed the labor liability or did not
report to the Department for State Property Management. A total of
6969 jobs, 3318 new jobs had been foreseen. The government filed
actions against companies which had failed their liabilities. Karineh
Kirakosyan cannot remember cases when the companies were returned to
the state, however, she clearly stated that filing of actions made
buyers to hurry up.

300 entities remain on the list of companies to be privatized,
concluded Karineh Kirakosyan.