2009 Marked By Initiation Of Large-Scale Programs By RA Ministry Of

2009 MARKED BY INITIATION OF LARGE-SCALE PROGRAMS BY RA MINISTRY OF ECONOMY

Noyan Tapan
Jan 21, 2010

YEREVAN, JANUARY 21, NOYAN TAPAN. For the RA Ministry of Economy, 2009
was marked by the development of priority policies, the initiation
of large-scale programs and the start of processes aimed at capacity
development. Minister of Economy Nerses Yeritsian stated this during
the presentation of the 2009 report to the Armenian prime minister
on January 20.

In his words, with the aim of mitigating the impact of the global
crisis on Armenia and preventing the possible social tension, complex
measures were taken for efficient use of resources, and resources
of donor organizations were mobilized. The minister underlined that
loans of 0 million were attracted under programs on cooperation with
the World Bank in order to help the priority branches of the economy
withstand the crisis and to create prerequisites for long-term
development. A package of million credit resources to assist the
development policy was formed as part of the partnership policy, and
the package was of importance in terms of fulfillment of state social
obligations. Cooperation with the IMF allowed to inject 0 million
into the economy, preventing fiscal and monetary shocks in the country.

Foundations for large-scale cooperation with the Asian Development Bank
(ADB) were laid. Under the assistance program aimed at overcoming the
crisis, budget support of million was provided for rehabilitation
of the earthquake zone and implementation of the budget-financed
social projects. Besides, an agreement on 0 million budget support
was reached through continued negotiations with the EU.

N. Yeritsian said that an unprecedented infrastructure-related program
began in Armenia. ADB assumed an obligation to provide concession
loans of million for the first stage of the North-South Road Corridor
Investment Program.

Assistance was provided to real sector within the framework of
anti-crisis policy, in particular an amendment was made to the law
on VAT, by which VAT payments are deferred for 3 years for import of
goods over 300 million drams considered as investment, as well as for
import of goods under investment programs approved by the government.

An operative staff was established to discuss business plans submitted
by private businessmen and to determine the form of assistance
to them. The staff examined about 300 business plans, of which 24
projects of the total cost of 14.1 billion drams were approved.

According to N. Yeritsian, the ministry also carried out consistent
work on capacity building and governance improvement necessary for
current reforms.

N. Yeritsian said the ministry took serious steps on the implementation
of the strategy of industrial policy, the creation of infrastructure
necessary for forming an information society in Armenia, and ensuring
access to instruments of the European Neighborhood Policy. Special
attention was paid to the creation of an assessment system in line
with international standards, the formation and strengthening of
Armenia’s image as a tourism country, and to the introduction of a
system for the Sustainable Development Program’s implementation.