SMALL AND MEDIUM BUSINESS DEVELOPS ACTIVELY, ROBERT KOCHARIAN SAYS

Noyan Tapan
Jun 21 2006

YEREVAN, JUNE 21, NOYAN TAPAN. Issues related to development of small
and medium business were discussed during the June 21 meeting of Robert
Kocharian and a number of representatives of the sector. According
to the RA President’s press service, the ministers of agriculture,
trade and economic development also participated in the meeting.

R. Kocharian noted that small and medium business is developing
actively, which is evident from the fact that it accounts for 40% of
GDP and 16% of exports of Armenia. The President called on more than
20 businessmen representing all the Armenian marzes to hold an open
discussion to identify the obstacles to SME development and based on
it, to decide what new steps the Armenian government should take to
secure a favorable climate for SME activities.

The meeting participants noted that the sector’s development has
entered a new stage characterized by an increase in the number of
small and medium enterprises and the process of their technical
re-equipment. However, there are still problems to be solved,
particularly, the need to conduct fewer check-ups at small and medium
enterprises, provide regional businessmen with business advice, to
train personnel with special education, as well as some legislative
flaws.

The problem of long-term credits with low interest rates and the
need to extend leasing services were also discussed in detail. The
regional businessmen said that they have difficulty meeting the terms
of pledged security for receiving a credit, because the value of land
and property in Armenian marzes is much lower than in Yerevan.

R. Kocharian informed them that in order to deal with the situation,
the cost of the state budget-financed program on provision of credit
guarantees will be increased this year. He welcomed that fact that
the number of entrepreneurs engaged in small and medium business who
are in need of credit resources is on the increase.

The meeting participants also addressed the problem of foreign currency
fluctuations. In this connection, the President noted that this problem
affects the business circles in the whole world, and when signing
contracts, our businessmen should try to insure themselves against it.

R. Kocharian said the problems raised at the meeting will be discussed
once again at a special consultation to be held soon in order to find
final solutions.