BANKS CAUTIOUS OF CREDITING IT FIELD

news.am
Nov 23 2009
Armenia

The banks are overcautious with crediting Informational Technologies
(IT) field, Director of the Enterprise Incubator Foundation Bagrat
Yengibaryan told NEWS.am, adding that IT does not rely heavily on
the banks. "WB jointly with RA Ministry of Finance and Economy are
developing a Venture Foundation model for Armenia", said Yengibaryan,
pointing out that IT all over the globe is funded by these foundations,
that invest large amounts expecting to make a good profit.

According to Yengibaryan, banks’ caution of IT sphere is
understandable, that is considered a risky sector. That is why banks
avoid risks, particularly amid the global financial crisis. Venture
Foundations operate in a risky field, where beyond all risks the
possibility to generate quick and handsome profit is high. In case of
financing programs’ approval these foundations immediately invest U.S.

$1 m, meanwhile trusting the established market players of the field,
Yengibaryan informs. "It is impossible to establish the filed in
Armenia otherwise, at that this is insufficient either, as the
venturing foundation will not allocate U.S. $1 m. to a start-up
company", he said.

From: Emil Lazarian | Ararat NewsPress