2024-09-16 08:34:31
The government has adopted a relevant decision, which envisages changes in the rules of operation of the Armenian State Interests Fund.
Before discussing the issue, Tigran Avinyan noted.
“Dear colleagues, during the session of May 21 of this year, the government announced the launch of a new program aimed at long-term economic development, which is probably one of the largest anti-crisis programs implemented by the government of the Republic of Armenia. Within the framework of the program, the state has expressed its readiness to support those investment initiatives of the private sector, which would have difficulties in starting and progressing without the support of the government, through investments of up to 50 billion drams. In general, the logic of the project is that the state finances a maximum of 25 percent of the project, the other 25 percent is financed by the investor, and the remaining 50 percent is financed by the financial institution.
The Minister of Economy, Tigran Khachatran, presenting the issue, noted that as a result of long discussions with the representatives of the governor and partner structures of the government and during the consultation with the Prime Minister, a decision was made to make certain changes in the rules of operation of the State Interest Fund of Armenia. According to the minister, according to the current regulations, the fund can participate in such investment projects, where the amount of government participation cannot be less than 1 million US dollars and more than 2 million US dollars.
“However, the fund manager’s discussions with the private sector indicate that there are many cases where, if the amount is a little less than 1 million drams, or if it is higher than 2 million dollars, the government can potentially show significantly greater participation. to the progress of investment projects. We already have some statistics and a report documenting such cases. Accordingly, with this change, we plan to provide greater flexibility to the fund manager and allow the investment amount to be between half a million dollars or from $500,000 to $4 million, instead of 1 to 2 million,” said Tigran Khachatryan.
According to the minister, the second amendment is also very important.
“Until now, the government limited the fund manager to discuss investment opportunities only in the case of newly launched projects. However, there are many programs where the investor has already made some progress with his own funds in the preparation of the investment plan. The government decided that it should also allow the manager to participate in such ongoing investment programs,” said Tigran Khachatryan.
The minister informed that four more new rules of the fund’s activity are defined, which refer to the participation of the government. In particular, the government will have a time-limited participation in the fund.
“We define that term as 10 years. During the first five years, the fund manager will have the right to make active investments, and the second five years will be reserved for the return of the state’s shares,” said Tigran Khachatryan.
The minister noted that in the near future there will be an application and satisfaction will be given within the limits of 5 billion drams, which is the first amount determined for 50 billion drams.