PRIME MINISTER OF ARMENIA: OWNERS OF MINING COMPANIES HAVE ENOUGH FINANCIAL BUFFER TO WAIT OUT HARD TIMES

ArmInfo
2008-12-16 11:55:00

ArmInfo. The owners of mining companies have enough financial buffer
to wait out hard times of the world economic crisis, Prime Minister
of Armenia Tigran Sargsyan said in an interview with Golos Armenii
newspaper.

"It is not a secret that metal prices were much higher than their
business-programs envisaged when they had launched activity. This
means that over the last three years they received extra profits",
the premier said referring to the poll conducted by the National
Statistical Service to reveal the profitability of various economic
sectors. Tigran Sargsyan said that the government is currently
negotiating with the owners and demands fulfillment of their social
obligations to the staffs. However, it is also important for the
revenue services to fulfill their obligations to the enterprises and
payback VAT, which will contribute to creating financial buffer, the
premier said. He mentioned that the government discusses development
programs with the owners, including with government involvement if
necessary. Falling of the world metal prices due to the economic
crisis has led to reduction of mining production in Armenia as well
as job axing and reduction of salaries.