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SME STATE ASSISTANCE PRODUCES RESULTS
Noyan Tapan
Mar 27 2006
YEREVAN, MARCH 27, NOYAN TAPAN. Under the 2005 state program
on assistance to small and medium enterprises (SME) of Armenia,
about 4.5 thousand small and medium enterprises received state
assistance. Ishkhan Karapetian, Director of the SME National
Decelopment Center (NDC) of Armenia, stated this on March 24. In his
words, assistance was provided for credit guarantees and introduction
of quality management systems, support for businessmen who have just
started running a business, market promotion of goods, as well as for
business information, advice and training. The SME NDC director said
that the implementation of the credit quarantees program started in
2005. Within the program's framework, 54 guarantees of a total of 195.4
mln drams were given in all the Armenian marzes, which allowed SME to
get loans of the total amount of 370 mln drams (about 822 thousand USD)
at lower interest rates than the market ones.
The credit guarantees program was implemented by 100% in the Armenian
marzes, by 80% - in remote and border areas, where there are still
credit security-related problems. The amount of 7 credit guarantees
has already been repaid, while the credit repayment index makes up
100%. According to I. Karapetian, turnover volumes grew by 30-40%,
jobs - by 24% and tax payment - by 19-20% at the enterprises that
received credit guarantees. It is envisaged to extend the program
in 2006. Besides, within the framework of the SME state assistance
program, a program on assistance of beginner-businessmen was
implemented in three Armenian marzes with the participation of
67 beginner-businessmen, 13 of which were registered as economic
entities. I. Karapetian noted that with the creation of the 4 regional
branches of the SME NDC in 2005, the process of forming a network
of branches was completed, and branches are now functioning in all
Armenian marzes. According to him, the state budget resources for
the implementation of the SME assistance program will increase by
50 mln drams in 2006 compared with 2005 and make 350 mln drams, and
this sum will be allocated for the development of new programs and
mechanisms of SME assistance.
Provision of assistance to the SME of Armenian marzes, especially
to those in border areas, will remain the main direction of the
program. This year it is envisaged to extent the program on assistance
to beginner-businessmen to all the Armenian marzes. In response to a
question of NT correspondent, the SME NDC director said that since
2002 the center has assisted 15-20 companies with introducing the
quality management systems, as a result of which their turnover and
exports significantly increased. According to him, the businessmen
attach now much more importance to the necessity to introduce new
methods of business running than they did in 2002.
Noyan Tapan
Mar 27 2006
YEREVAN, MARCH 27, NOYAN TAPAN. Under the 2005 state program
on assistance to small and medium enterprises (SME) of Armenia,
about 4.5 thousand small and medium enterprises received state
assistance. Ishkhan Karapetian, Director of the SME National
Decelopment Center (NDC) of Armenia, stated this on March 24. In his
words, assistance was provided for credit guarantees and introduction
of quality management systems, support for businessmen who have just
started running a business, market promotion of goods, as well as for
business information, advice and training. The SME NDC director said
that the implementation of the credit quarantees program started in
2005. Within the program's framework, 54 guarantees of a total of 195.4
mln drams were given in all the Armenian marzes, which allowed SME to
get loans of the total amount of 370 mln drams (about 822 thousand USD)
at lower interest rates than the market ones.
The credit guarantees program was implemented by 100% in the Armenian
marzes, by 80% - in remote and border areas, where there are still
credit security-related problems. The amount of 7 credit guarantees
has already been repaid, while the credit repayment index makes up
100%. According to I. Karapetian, turnover volumes grew by 30-40%,
jobs - by 24% and tax payment - by 19-20% at the enterprises that
received credit guarantees. It is envisaged to extend the program
in 2006. Besides, within the framework of the SME state assistance
program, a program on assistance of beginner-businessmen was
implemented in three Armenian marzes with the participation of
67 beginner-businessmen, 13 of which were registered as economic
entities. I. Karapetian noted that with the creation of the 4 regional
branches of the SME NDC in 2005, the process of forming a network
of branches was completed, and branches are now functioning in all
Armenian marzes. According to him, the state budget resources for
the implementation of the SME assistance program will increase by
50 mln drams in 2006 compared with 2005 and make 350 mln drams, and
this sum will be allocated for the development of new programs and
mechanisms of SME assistance.
Provision of assistance to the SME of Armenian marzes, especially
to those in border areas, will remain the main direction of the
program. This year it is envisaged to extent the program on assistance
to beginner-businessmen to all the Armenian marzes. In response to a
question of NT correspondent, the SME NDC director said that since
2002 the center has assisted 15-20 companies with introducing the
quality management systems, as a result of which their turnover and
exports significantly increased. According to him, the businessmen
attach now much more importance to the necessity to introduce new
methods of business running than they did in 2002.