1.118 BILLION FROM PRIVATIZATION
Azat Artsakh – Nagorno Karabakh Republic (NKR)
21 Feb 05
Privatization of the state property in our republic began in
1995. According to the head of department for management and
privatization of state property A. Abrahamian, the program of
privatization is perhaps the only long-term program of reforms. He
informed that since the beginning of privatization the state budget
has received 1 billion 118 million drams. In ten years privatization
of outlets, public food places, other services and rented area was
completed. By January 1 of the current year 829 such establishments
and lots were privatized and 629 million drams were paid to the state
budget. This is not a final result because there is not a fixed
deadline for payments. Payments for 773 privatized establishments were
made completely. A. Abrahamian said, of the above-mentioned 829
establishments 168 were privatized by the members of the staff, 413
were privatized by the renters. 180 establishments were sold at
auction, 23 were granted. In 1998 the government launched the
privatization of state companies, and since then 57 companies were
privatized. 27 companies were sold at auction (the assessed value
totaled 1 billion 104 million drams, the sale price was 548.3 million
drams). 18 companies, the assessed price of which totaled 853.3
million drams and the sale price was 241.7 million drams, were put out
to tender. 12 companies were granted. Their assessed value was 855.6
million drams. In case of tender the government maintains the minimum
price and the buyer tenders a sum which cannot be lower than the price
maintained by the government. By the way, the law on privatization of
state property allows privatization at a price higher or lower than
the assessed value. A. Abrahamian said, the price is reduced taking
into account the investments made by the buyer, debts owed by the
company, the fixed assets of the company and depreciation of fixture,
the prospect of creating new jobs. In 2004 83 lots were privatized of
which 13 are companies and 8 are structural units separated from the
inventory of companies. 61 small and half-ruined buildings and one
unfinished building were privatized as well. Last year the state
budget received 272.5 million drams from privatization of the state
property. Privatization is carried out within the framework of the NKR
law on the 2004-2006 plan of privatization of the state property
adopted last year. According to the plan there are 62 companies to be
privatized, of which 13 were already privatized. There are companies
the privatization of which was not carried out for years. These are
involved in the plan of the next year. Presently there are 12 such
companies (including the factories of wine, condensers, electrical
appliances, furniture).
SRBUHI VANIAN.
21-02-2005