Nerses Yeritsian: Global economic crisis opens development
opportunities for Armenia
09-12-2008 17:00:00 | Armenia | Economy
YEREVAN, DECEMBER 9, NOYAN TAPAN. The global economic
crisis opens some opportunities for Armenia's economic
development not only because the country is not integrated
deeply into the global economy but also because Armenia has
accumulated a serious resource of macroeconomic policy in the
past ten years. The RA minister of economy Nerses Yeritsian said
this during the round table on the subject "The Global Financial
Crisis. The Strategy of Behaviour in the Crisis Situation" at
the "without-tie" meeting-forum of ICT leaders in Dilijan on
December 6-7.
In his words, Armenia can increase the budget deficit
threefold or by several billion dollars without considerable
inflationary pressures as the current ratio of Armenia's foreign
state debt to GDP is one of the lowest in the world and makes
15%. To recap, by the IMF methodology, a 45% ratio of foreign
debt to GDP is considered dangerous, and, according to the
minister, many countries have no opportunities to increase their
debts.
Addressing the questions and proposals of the meeting
participants, N. Yeritsian said that some structural changes
have been launched to speed up the implementation of the concept
of developing the Armenian IT sector. According to him, one of
the short-term solutions for development of economic zones with
special status is to ensure the use of the Law on Free Economic
Zones at the technopark founded in Gyumri and to operate
enterprises there. Some steps in this sphere are envisaged by
decisions of the Armenian-Russian intergovernmental commission
on economic cooperation: in particular, it is envisaged signing
agreements with such Russian state companies as
Rosnanotechnologies and Rosventure, under which the programs of
Sitronix company (Russia) with the Research Institute of
Mathematical Machines after Mergelian and Mars company will be
financed, and in 2009 it will become possible to create free
economic zones on the basis of these subjects.
The minister also announced that the proposal to establish
a representative office of Armenia in Silicon Valley (the
proposal was made at the 2nd ArmTech high-technology congress in
Yerevan in early October) is being implemented.
As regards state assistance to technological small and
medium companies, he said that this problem may be solved by
using such mechanisms as state participation in the capital of
companies, provision of state guarantees and crediting. N.
Yeritsian reminded that in particular, during the investment of
state share of 45 million drams (about 300 thousand USD) in
Instigate company by Grant Thornton Amyot consulting and audit
company, the nonfinancial assets of Instigate were also
assessed, and this experience of money attraction may be used by
other companies as well. The minister informed those present
that the concepts of attracting venture financing are also being
developed in cooperation with USAID Competitive Armenian Private
Sector (CAPS) Project. The state is ready to finance up to 20%
of venture projects, and such proposals were made by Lincy
Foundation and other financial structures.
As for diversification of the Internet access in Armenia,
the minister said that after ArmTech congress, the president and
prime minister of Armenia have raised the issue of building an
Internet link through the territory of Turkey for connecting
Armenia with the outside world at all their meetings with
officials of the European Union and EU countries.
It was mentioned that the functions of the Armenian
Development Agency (ADA) are being reviewed with the aim of
developing Armenia's technological sector, the work of the
Enterprise Incubator Foundation has been put on a more solid
basis, with resources of the World Bank being used. The minister
noted that the state will invest money for promoting the
products of the sector's companies so businessmen should have
long-term initiatives. He attached importance to the business
community's capacities to formulate and present their problems
also in terms of establishing simplified procedures of
technological equipment's export, underlining that in case of
adopting such a practice, the issue may be solved in a short
period based on only one decision of the Armenian government.
M. Yeritsian also underlined the necessity to start
discussions of tax legislation-related reforms, adding that the
RA ministry of economy has made an analysis of these reforms.