ARMENIAN FINANCE MINISTRY MANAGES TO FULFILL ITS KEY OBJECTIVES IN 2008

ARKA
Feb 11, 2009

YEREVAN, February 11. /ARKA/. Armenian Finance Ministry has fulfilled
its key objectives set for 2008.

Finance Minister Tigran Davtyan, presenting its 2008 activity report to
the Government, said that some programs were implemented with faults.

"The 2008 governmental program implied six steps, of which five were
taken and one will be taken later. It is the concept of the system
controlling state funds", he said.

The minister said that the concept has already been worked out and
sent to international experts.

Davtyan said that the program is being implemented in cooperation with
World Bank, who said eight to ten months were needed for examination.

But the ministry asked experts to mull over the concept in a shorter
term.

It means the concept will be approved earlier.

Among the ministry’s top-priority focuses, Davtyan singled out
elaboration of the main part of Armenian Tax Code.

He said that the elaboration is about over, and the first version of
the document is already unveiled for public discussion.

The minister said that this part of the code is planned to be sent
to the Government and the Parliament in spring.

He said that the governmental program for 2008/2012 planned 13
actions, which were implemented in 2008 as a whole, but with certain
stipulations on two of them.

In particular, the stipulations were re lated to the concept of
enhancement of mortgage loans availability for young families and
the law on internal audit.

As underfulfilled objectives, Davtyan pointed out Doing Business
component, which includes export-simplifying measures.

"The thing is that the finance ministry is often coordinating processes
while the real executive agencies are trade ministries", he said.

"We are often being offered not to simplify the procedure, since they
are simple".

Prime Minister Tigran Sargsyan objected saying that there are problems
in export area – comparison with similar procedures in other countries
shows that red tape in Armenia comes from practice and legislation.

"This drives Armenia’s rating down", the premier said. "If other
countries have managed to simplify these procedures, Armenia is able
to do it as well. For example, Azerbaijan showed that it is possible
to implement substantial reforms in this area within one year".