Government of Armenia releases 4.084 million drams to pay off debts of water user associations
04.07.2019,
16:20
The government of Armenia has released today 4.084 billion drams to pay off the debts of water users associations.
YEREVAN, July 4. /ARKA/. The government of Armenia has released today 4.084 billion drams to pay off the debts of water users associations.
Territorial Administration and Infrastructures Minister Suren Papikyan described this sector as one of the most problematic ones that has been rife with abuses having accumulated huge debts. According to the minister, the associations’ debts to Ameriabank alone in 2018 amounted to about 7 billion drams.
“The problem is that for many years, at the end of each year the associations would borrow loans from banks to pay off their electricity bills and used the following year’s government subsidies to pay off the loans,” he said.
According to the minister, 7.435 billion drams allocated in 2019 were also used to pay the associations’ debts , but the amount was not enough to start the year with zero debts.
"What is the worst – the subsidies were allocated for updating the irrigation systems and for financial support of the associations, and of course, when funds allocated to upgrade the system are used to pay off debts, the system does not improve," said Papikyan.
That is why, according to the minister, it was proposed to allocate 4.084 billion drams to pay off the associations’ credit obligations so that they enter the autumn with zero debts. "This will provide an opportunity to improve the system," he said. ($ 1 - 477.02 drams). -0-
Territorial Administration and Infrastructures Minister Suren Papikyan described this sector as one of the most problematic ones that has been rife with abuses having accumulated huge debts. According to the minister, the associations’ debts to Ameriabank alone in 2018 amounted to about 7 billion drams.
“The problem is that for many years, at the end of each year the associations would borrow loans from banks to pay off their electricity bills and used the following year’s government subsidies to pay off the loans,” he said.
According to the minister, 7.435 billion drams allocated in 2019 were also used to pay the associations’ debts , but the amount was not enough to start the year with zero debts.
"What is the worst – the subsidies were allocated for updating the irrigation systems and for financial support of the associations, and of course, when funds allocated to upgrade the system are used to pay off debts, the system does not improve," said Papikyan.
That is why, according to the minister, it was proposed to allocate 4.084 billion drams to pay off the associations’ credit obligations so that they enter the autumn with zero debts. "This will provide an opportunity to improve the system," he said. ($ 1 - 477.02 drams). -0-
