Parliament exempts cement plant in Hrazdan from fines
07.04.2016,
17:07
Today the Armenian parliament passed in the second and final reading a law that exempts a cement plant in the central town of Hrazdan from fines generated by its failure to pay in due time taxes and other mandatory payments.
YEREVAN, April 7. /ARKA/. Today the Armenian parliament passed in the second and final reading a law that exempts a cement plant in the central town of Hrazdan from fines generated by its failure to pay in due time taxes and other mandatory payments.
According to economy minister Artsvik Minasyan, the total debt of the plant is estimated at 935 million drams. The law forgives it only the fines standing now at 510 million drams. The minister said the debts resulted from economic crisis and poor management. The plant had to pledge its property to VTB Bank (Armenia), which later became its full owner.
To prevent the cement plant from going bankrupt, VTB Bank (Armenia) provided it with a loan of $4.6 million for resuming operations. According to the minister, the loan will enable the plant to ensure production of about of 200 thousand tons of cement per year, to maintain 460 jobs and solve a number of social issues.
In 2015 the plant produced about 80 thousand tons of cement, while the total cement production last year in the country amounted to 417 thousand tons.
The minister said the bank may soon put the plant for sale to meet the banking legislation (the bank has no right to own production facility).
Some of the lawmakers were against the law, saying instead of providing benefits to one enterprise, the ministry should compile the list of companies which are in a similar situation to adopt a common solution.
In the 90s the plant stood actually idle. In 2001 it was privatized by MIKA Armenia company. The plant has two production lines with a designed capacity of 1.2 mln tons of cement and 1 million tons of clinker per year. ($ 1 - 482.01 drams). -0-
According to economy minister Artsvik Minasyan, the total debt of the plant is estimated at 935 million drams. The law forgives it only the fines standing now at 510 million drams. The minister said the debts resulted from economic crisis and poor management. The plant had to pledge its property to VTB Bank (Armenia), which later became its full owner.
To prevent the cement plant from going bankrupt, VTB Bank (Armenia) provided it with a loan of $4.6 million for resuming operations. According to the minister, the loan will enable the plant to ensure production of about of 200 thousand tons of cement per year, to maintain 460 jobs and solve a number of social issues.
In 2015 the plant produced about 80 thousand tons of cement, while the total cement production last year in the country amounted to 417 thousand tons.
The minister said the bank may soon put the plant for sale to meet the banking legislation (the bank has no right to own production facility).
Some of the lawmakers were against the law, saying instead of providing benefits to one enterprise, the ministry should compile the list of companies which are in a similar situation to adopt a common solution.
In the 90s the plant stood actually idle. In 2001 it was privatized by MIKA Armenia company. The plant has two production lines with a designed capacity of 1.2 mln tons of cement and 1 million tons of clinker per year. ($ 1 - 482.01 drams). -0-
