Industrial Development Fund established in Armenia

YEREVAN, January 14. /ARKA/. Armenia’s Economy Minister Tigran Davtyan chaired Monday the first meeting of the Industrial Development Fund in Yerevan.

In  November 2012 Armenia’s government renamed Gyumri Development Fund to Industrial Development Fund expanding the functions of the new structure. 

The fund is another tool to boost industry under the industrial export-oriented strategy of Armenia, strengthen cooperation between the State and the private sector, advance the competitiveness of manufacturing enterprises. 

Board of trustees consists of nine members—of them five are permanent (deputy ministers of economy, finance, agriculture, healthcare and territorial administration) and four are temporary who represent public and private sectors.

 “Today we have another important structure targeted at supporting economy, the real sector, industry,” Mr. Davtyan told reporters. 

According to him, the Fund complies with  the country’s industrial policy and its main goals will be to support manufacturing enterprises, especially those of export-oriented nature,  financially, technically, etc. 

The Fund’s resources amount to nearly 500 million drams ( of them 300 million drams are earmarked in the 2013 state budget). 

“Moreover, the state funds in the system are also consolidated,” he said clarifying that he means the funds presupposed for Gyumri Development Fund.  

The status of the Fund allows to attract additional funds from either private sector  or international structures.

The minister said in the future it is planned to increase the resources of the Fund as the State expands the budget funds. 

“The most important thing is that we will try to attract private and international structures,” Davtyan said.

The Fund’s resources will be used on the basis of equal co-financing by the State and the private sector, he added. 

“For example, if a company wants to participate in an international exhibition but has no enough funds for that, we can cover 50% of expenses,” he noted.

Thus, the existing resources will be growing. However, the Fund will give no loans.

“Our goal is to direct the resources to the industrial sector increasing the existing opportunities,” Davtyan implied. 

There is a complex institutional system in Armenia which supports the real economy sector, and this system is coordinated by Economy Ministry.

“We have such structures like the Armenian Development Agency that stimulates export and attracts investments, SME Support Center,” he said adding that the government had already earmarked 6 billion drams to “SME investments” universal credit organization which focuses on industrial lending. 

 

“About 100 enterprises received these resources,” he said.

Davtyan also prioritized  the performance Union of Industrialists and Entrepreneurs (employers) of Armenia and  Chamber of Commerce and Industry of Armenia adding that Export Guarantee Agency is to be established soon.

“The new Industrial Development Fund differs from already existing structures by its format, approaches and tasks. It doesn’t replace but complements them,” he resumed. ($1 – 408.59). -0-