Development of military-industrial complex may become driving force for Armenia’s growth
18.05.2016,
18:04
Development of the military-industrial complex may become a major driving force for Armenia's economic growth, the head of the Union of Domestic Manufacturers Vazgen Safaryan said today.
YEREVAN, May 18. /ARKA/. Development of the military-industrial complex may become a major driving force for Armenia's economic growth, the head of the Union of Domestic Manufacturers Vazgen Safaryan said today.
Speaking at a news conference, Safaryan said there are certain prerequisites for doing so.
"We have a plant for production of ammunition, but we import them, as the cost of domestically produced ammunition is higher, but nevertheless we need to develop domestic production, including through the establishment of internal cooperation," he said.
According to him, cheap credit resources are required for the development of local production, while loans provided by commercial banks are very expensive, and the refinancing rate is high. In addition, energy prices are very high.
Safaryan noted that companies must be provided with certain privileges and state orders, so that they are able to "pull" other related industries.
According to Safaryan, the four-day war in Nagorno-Karabakh in early April has revealed a number of serious problems that need to be addressed, and that was why prime minister pledged to streamline government expenditures, step up the declared fight against corruption and improve the domestic business environment.
"I believe that this statement is very important, although it was late,’ Safaryan said.
Safaryan noted also the importance of development of the industry, which currently secures only 17.5% of GDP, although Armenia has reserves to increase this figure to 20-25%.-0-
Speaking at a news conference, Safaryan said there are certain prerequisites for doing so.
"We have a plant for production of ammunition, but we import them, as the cost of domestically produced ammunition is higher, but nevertheless we need to develop domestic production, including through the establishment of internal cooperation," he said.
According to him, cheap credit resources are required for the development of local production, while loans provided by commercial banks are very expensive, and the refinancing rate is high. In addition, energy prices are very high.
Safaryan noted that companies must be provided with certain privileges and state orders, so that they are able to "pull" other related industries.
According to Safaryan, the four-day war in Nagorno-Karabakh in early April has revealed a number of serious problems that need to be addressed, and that was why prime minister pledged to streamline government expenditures, step up the declared fight against corruption and improve the domestic business environment.
"I believe that this statement is very important, although it was late,’ Safaryan said.
Safaryan noted also the importance of development of the industry, which currently secures only 17.5% of GDP, although Armenia has reserves to increase this figure to 20-25%.-0-
