11 COMPANIES INCLUDED IN STATE PROPERTY PRIVATIZATION PROGRAM PRIVATIZED IN ARMENIA IN 2006

Noyan Tapan
March 17, 2008

YEREVAN, MARCH 17, NOYAN TAPAN. The RA National Assembly on March
17 approved the 2006 annual report on execution of the 2006-2007
state property privatization program. The report was discussed at
the previous four-day session.

In the reporting period, 19 companies and 22 property units included in
the programs were offered for privatization, with 17 companies being
offered for privatization through tender and auction. 38 property
units left after liquidation were also offered for privatization. In
2006, 11 companies and property units included in the program were
privatized, including 4 ones through direct sale, 3 – through tender,
and 4 – by auction.

455.42 mln drams and 550 thousand dollars was transferred to the RA
state budger as a result of privatization, another 42.157 mln drams
(about 136 thousand USD) was transferred to community budgets.

45.5% of the privatized companies were ones whose stock management
powers were transferred to the State Property Management Department
adjunct to the Armenian government, 27.5% – to the RA ministry of
culture and youth issues, 9% – to the RA ministry of trade and economic
development, 9% were companies and privatization objects of the RA
ministry of health, and another 9% were companies and privatization
objects of the RA ministry of agriculture.

The report says that among factors hindering the privatization
process in 2006 were low attractiveness (to investors) of the
companies presented for privatization, their large debts, as well as
the fact that some of the companies included in the program were in
the bankruptcy process and their property was seized.

From: Emil Lazarian | Ararat NewsPress