PRIVATIZATION OF “SMALL” OBJECTS ALMOST COMPLETED IN ARMENIA

Noyan Tapan
Apr 13 2006

YEREVAN, APRIL 13, NOYAN TAPAN. 1,925 companies, 7,266 “small”
objects and 80 incompleted construction objects were privatized in
Armenia in the period from 1994 to January 1, 2005. As a result, the
funds received from state property privatization made 142 bln drams
and 45 mln USD. Head of the State Property Management Department
adjunct to the RA government Karine Kirakosian stated this at the
April 11 sitting of the RA National Assembly, when presenting the
report on implementation of the 2001-2003 state property privatization
program. According to her, since 2004 the pace of the privatization
process has slowed down due to a number of objective reasons,
first of all, low attractiveness of some enterprises on the list of
companies subject to privatization. The maintenance, modernization and
operation of most of these enterprises require considerable investments
because of their deterioration and moral depreciation. Most of state
property was sold at 25% of its estimated value for the reason of
low attractiveness. However, there were cases when state property was
sold at a higher price than the estimated value. K. Kirakosian noted
that the privatization of “small” objects has almost been completed,
and one third of 1,000 companies included in the program have filed
for bankruptcy because of their “poor operation”. 300 companies have
not yet been privatized, so they were included in the 2005-2007 state
property privatization program sumitted to the NA for approval. The
privatization process was criticized by some representatives of
Justice, National Unity and Orinats Erkir factions and independent
deputy Manuk Gasparian who said that they will vote against the
report. The deputies brought examples of various companies that
were privatized at a lower price than the market value. According
to Secretary of Justice faction Victor Dallakian, Orbita company
assessed at 3 bln drams was privatized for 150 mln drams, the 45.7%
state stake of Luys Publishing House – for 10 mln 825 thousand drams,
while the construction complex, including the office of Orinats
Erkir Party, at 14 Koryun Str. – for 45 mln drams. According to the
deputy’s information, the compex was sold to the RA Minister of Trade
and Economic Development.

From: Emil Lazarian | Ararat NewsPress