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, www.ev.am.

---