A regular Cabinet meeting was held today, chaired by Prime Minister Karen Karapetyan.
A memorandum of understanding will be signed between the Government of Armenia and Armenia Investors Club closed non-public contractual investment fund to jointly implement projects of strategic importance.
The cooperation between the Government and the Fund will provide the opportunity to bring in large-scale private investments and direct them toward the development of areas of strategic importance for Armenia’s economy, such as energy, including the production of alternative energy and energy infrastructure, tourism infrastructure, mining, information and communications technology (ICT), processing industry. The Fund will act as the Government’s partner to promote public-private partnership. The Fund will participate in investment projects with its own resources, sharing the risks.
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Highlighting the decision, Karen Karapetyan stated in part, “The Fund will not only help attract investment, but it will also bring in a new business culture. Fund members are well-known and successful businessmen. They have a wide range of different partners in different countries; they will serve as a bridge between the business communities in Armenia and those countries. The Fund will have our maximum support and cooperation.”
The Executive approved a set of amendments to the law On Licensing and a number of other interrelated laws. The bills are meant to make more efficient, less time consuming and optimal the licensing procedure for certain types of activities subject to licensing. In addition, the powers will be centralized in relevant competent bodies. Also, the licensing requirements will be removed for all 4 types of activities subject to licensing (customs protection products and free customs warehouses, duty-free shops selling goods under customs control, customs and licensing activity of the requirement) for customs control areas.
A notification mechanism will be introduced for implementation of foreign economic activity related to the purchase and sale, import, export and transit of certain types natural, raw or processed diamonds (not framed or fastened), subject to Commodity Nomenclature (GN FEA) 710210000, 710221000, 710231000 codes.
Stressing the importance of the bills, the Head of Government instructed to provide adequate information on the proposed changes to the business circles.
To activate the primary and secondary government bond market (the retail market), the Government adopted a relevant decision. At the same time, the format of savings bonds regulation will be harmonized with the regulations applicable to the relations with other government treasury bonds.
The primary placement of treasury bonds shall be implemented through a commercial platform mediating modern software solutions and debt management instruments. The sale of treasury bonds through an online system will contribute to the expansion of retail investors, and increase investment.
Karen Karapetyan said to be looking forward to positive results from cooperation between the Ministry of Finance and the Central Bank. “The capital market should be paid maximum attention.”
Given the 2017 dynamic of collection of budget revenues, and the positive signals and developments as to the impulsive nature of fiscal policy, as well as the availability of obligations relevant to infrastructure projects, the Government is increasing the target program of expenses (primarily capital) in various sectors of the economy through targeted credit programs of external financing in 2017 by AMD 57.11 billion, including 47.28 billion in loan assets and 9.83 billion in government co-financing by raising budget revenue figures accordingly. As a result, the planned target of budget deficit remains unchanged in 2017.
The Prime Minister noted in this connection, “It is quite an important thing to start with. In fact, we have set a very bold plan to increase revenues by AMD 57.11 billion. The decisions and recommendations that the SRC brings along concerning the refund of surplus VAT amounts is putting an additional burden on our own revenues in terms of both export or domestic markets. Therefore, the SRC is ready, and we will push ahead boldly.”
The Government approved the concept of prevention of climatic disaster-caused agricultural losses, the main purpose of which is to predetermine the main directions of the policy aimed at enhancing agriculture’s immunity against climatic disasters, increasing the level of risk mitigation and preventing damages.
Highlighting the concept and the planned steps, Karen Karapetyan pointed out, “You have envisaged a very good thing. The stipulated measures cover insurance, improvement of the irrigation system, the provision of anti-hail resources – networks, anti-flood protection for land, seed production. I am confident that this is a very clever system to help us improve the farming industry. You are expected to change the system qualitatively. Its multiplier effect will be unpredictable.”
The Government adopted a decision on liquidation of several closed joint-stock companies. It is conditioned by the need to create a single body for implementing programs with various sources of funding in agriculture, improving the quality of services provided to farmers and expanding the coordination of donor programs in agriculture, rural development, the need for efficient allocation of resources.
It is planned to create targeted consultation, which will build capacity among agricultural sector actors, provide highly specialized services, support innovation, introduce new technologies and skills, promote agricultural farms, commercialize and develop the sector, provide advice and services aimed at modernization.
