NERSES YERITSIAN: GLOBAL ECONOMIC CRISIS OPENS DEVELOPMENT OPPORTUNITIES FOR ARMENIA
Noyan Tapan
Dec 9, 2008
YEREVAN, DECEMBER 9, NOYAN TAPAN. The global economic crisis opens
some opportunities for Armenia’s economic development not only because
the country is not integrated deeply into the global economy but also
because Armenia has accumulated a serious resource of macroeconomic
policy in the past ten years. The RA minister of economy Nerses
Yeritsian said this during the round table on the subject "The Global
Financial Crisis. The Strategy of Behaviour in the Crisis Situation"
at the "without-tie" meeting-forum of ICT leaders in Dilijan on
December 6-7.
In his words, Armenia can increase the budget deficit threefold or by
several billion dollars without considerable inflationary pressures as
the current ratio of Armenia’s foreign state debt to GDP is one of the
lowest in the world and makes 15%. To recap, by the IMF methodology,
a 45% ratio of foreign debt to GDP is considered dangerous, and,
according to the minister, many countries have no opportunities to
increase their debts.
Addressing the questions and proposals of the meeting participants,
N. Yeritsian said that some structural changes have been launched to
speed up the implementation of the concept of developing the Armenian
IT sector.
According to him, one of the short-term solutions for development of
economic zones with special status is to ensure the use of the Law
on Free Economic Zones at the technopark founded in Gyumri and to
operate enterprises there. Some steps in this sphere are envisaged
by decisions of the Armenian-Russian intergovernmental commission
on economic cooperation: in particular, it is envisaged signing
agreements with such Russian state companies as Rosnanotechnologies
and Rosventure, under which the programs of Sitronix company (Russia)
with the Research Institute of Mathematical Machines after Mergelian
and Mars company will be financed, and in 2009 it will become possible
to create free economic zones on the basis of these subjects.
The minister also announced that the proposal to establish a
representative office of Armenia in Silicon Valley (the proposal was
made at the 2nd ArmTech high-technology congress in Yerevan in early
October) is being implemented.
As regards state assistance to technological small and medium
companies, he said that this problem may be solved by using such
mechanisms as state participation in the capital of companies,
provision of state guarantees and crediting. N. Yeritsian reminded that
in particular, during the investment of state share of 45 million drams
(about 300 thousand USD) in Instigate company by Grant Thornton Amyot
consulting and audit company, the nonfinancial assets of Instigate were
also assessed, and this experience of money attraction may be used
by other companies as well. The minister informed those present that
the concepts of attracting venture financing are also being developed
in cooperation with USAID Competitive Armenian Private Sector (CAPS)
Project. The state is ready to finance up to 20% of venture projects,
and such proposals were made by Lincy Foundation and other financial
structures.
As for diversification of the Internet access in Armenia, the minister
said that after ArmTech congress, the president and prime minister of
Armenia have raised the issue of building an Internet link through
the territory of Turkey for connecting Armenia with the outside
world at all their meetings with officials of the European Union and
EU countries.
It was mentioned that the functions of the Armenian Development
Agency (ADA) are being reviewed with the aim of developing Armenia’s
technological sector, the work of the Enterprise Incubator Foundation
has been put on a more solid basis, with resources of the World Bank
being used. The minister noted that the state will invest money for
promoting the products of the sector’s companies so businessmen should
have long-term initiatives. He attached importance to the business
community’s capacities to formulate and present their problems also
in terms of establishing simplified procedures of technological
equipment’s export, underlining that in case of adopting such a
practice, the issue may be solved in a short period based on only
one decision of the Armenian government.
M. Yeritsian also underlined the necessity to start discussions of tax
legislation-related reforms, adding that the RA ministry of economy
has made an analysis of these reforms.
From: Emil Lazarian | Ararat NewsPress
