Parliament turns down bill forgiving cement plant's debts
26.04.2016,
15:41
Only 53 members of the Armenian parliament voted for a government-designed bill to exempt 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 26. /ARKA/. Only 53 members of the Armenian parliament voted for a government-designed bill to exempt 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.
Earlier economy minister Artsvik Minasyan would say that the total debt of the plant was estimated at 935 million drams. The bill forgave it only the fines standing now at 510 million drams. According to the minister, 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 $4.6 million for resuming operations. According to the minister, the loan would enable the plant to ensure production of about of 200 thousand tons of cement per year, to maintain 460 jobs and solve a number of social issues.
In 2015 the plant produced about 80 thousand tons of cement, while the total cement production last year in the country amounted to 417 thousand tons.
Addressing the parliament today Minasyan said if the bill were not approved, the plant's assets would be sold through an auction and no revenue to the state budget would be generated.
For his part, the chairman of a parliamentary committee on economic issues, Vardan Ayvazyan, said if the parliament did not forgive the debt, VTB Bank (Armenia) could split the company and sell its assets piecemeal.
Nonetheless, the bill was backed by only 53 lawmakers, insufficient for its adoption in the third and final reading.
In the 90s the plant stood actually idle. In 2001 it was privatized by MIKA Armenia company. The plant has two production lines with a designed capacity of 1.2 mln tons of cement and 1 million tons of clinker per year. ($ 1 - 482.01 drams). -0-
Earlier economy minister Artsvik Minasyan would say that the total debt of the plant was estimated at 935 million drams. The bill forgave it only the fines standing now at 510 million drams. According to the minister, 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 $4.6 million for resuming operations. According to the minister, the loan would enable the plant to ensure production of about of 200 thousand tons of cement per year, to maintain 460 jobs and solve a number of social issues.
In 2015 the plant produced about 80 thousand tons of cement, while the total cement production last year in the country amounted to 417 thousand tons.
Addressing the parliament today Minasyan said if the bill were not approved, the plant's assets would be sold through an auction and no revenue to the state budget would be generated.
For his part, the chairman of a parliamentary committee on economic issues, Vardan Ayvazyan, said if the parliament did not forgive the debt, VTB Bank (Armenia) could split the company and sell its assets piecemeal.
Nonetheless, the bill was backed by only 53 lawmakers, insufficient for its adoption in the third and final reading.
In the 90s the plant stood actually idle. In 2001 it was privatized by MIKA Armenia company. The plant has two production lines with a designed capacity of 1.2 mln tons of cement and 1 million tons of clinker per year. ($ 1 - 482.01 drams). -0-
