MINISTRY OF ECONOMY TAKES STEPS ON CREATION OF VENTURE FUND

Noyan Tapan

Ma y 21, 2008

YEREVAN, MAY 21, NOYAN TAPAN. The RA ministry of economy has
developed a draft document, in which, based on experience of Poland
and Hungary, the idea of creating a venture fund with mixed capital
is put forward. The draft has not yet been discussed by the sector’s
companies and the Armenian government, the RA minister of economy
Nerses Yeritsian said when presenting, at the invitation of the Club
of Economic Journalists, the economic provisions of the 2008-2012
program of the Armenian government.

He reminded about the provision of the draft concept of development of
Armenia’s IT sector, according to which a venture fund with capital
of up to 700 mln dollars shall operate in the IT sector of Armenia
10 years after the concept’s adoption.

In accordance with international experience, the state’s share makes
up to 20% of the venture funds in various sectors, while the remaining
share is private. The ministry’s research showed that the Armenian
venture fund should have capital of at least 30 mln dollars in order
to have skilful management and ensure the profit of venture financing.

N. Yeritsian said that a conference on development of Armenia’s IT
sector will be held in Silicon Valley in October 2008. The issue of
an Armenian venture fund will also be considered at the event. "The
subject of investors’ interest may be the realization of the whole
concept of IT sector’s development through business participation
rather than of the idea of a venture fund. At the moment there is
some optimism regarding this issue," he said.

From: Emil Lazarian | Ararat NewsPress