WORLD CRISIS HAS ALSO POSITIVE CONSEQUENCES FOR SOME ARMENIAN COMPANIES

Noyan Tapan
May 8, 2009

YEREVAN, MAY 8, NOYAN TAPAN. Nearly 90% Armenian businessmen said that
the crisis has already had an impact on their company’s activity and
only 5% think that it will have no impact at all. Manuk Hergnian, the
Chairman of the Economy and Values Research Center, reported at a May
6 press conference presenting the results of the study Situational
Estimation of Economic Crisis Impact on Armenia’s Economy. In his
words, nearly 80% responded entrepreneurs expect crisis deepening
in 2009.

According to the study results, over 70% enterprises had problems
mainly regarding reduction of sale volumes, delay of payments or their
non-fulfillment and 30-45% had difficulties in involving finances. M.

Hergnian said that as means to resist the crisis the most part of
enterprises is going to reduce administrative expenditures and to
delay implementation of investments.

40% responded companies plan to reduce the number of employees,
at that, most reductions will be done at small and medium-sized
enterprises.

Reduction of salaries is expected at 20% companies, especially at
industrial companies.

According to center director’s observation, the crisis had also
positive consequences for some companies, especially from point of
view of weakening of competitors’ positions, fall in prices for raw
materials and equipment.

According to M. Hergnian, among economic branches the biggest fall
was recorded in the spheres of energy, mining, and construction. Rates
of food industry growth have been kept almost unchanged.

60 small and big companies operating in Armenia took part in the
survey held in March-April. Study results details can be found at
center’s website,