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EXPERT: SMALL AND MEDIUM ENTERPRISES IN ARMENIA ARE NOT IN A GOOD STATE
arminfo
Thursday, February 16, 22:47
The small and medium enterprises in Armenia are not in a good state,
Director for Corporate Banking of Ameriabank Gagik Sahakyan said at
today's press conference in Yerevan when commenting on the current
state of SMEs in the country.
According to him, over the past few years the state of the small and
medium enterprises has been considerably improving, however now the
situation is far from being good. "SMEs are not a priority direction
now", Sahakyan said. He added that the monopolies and the high level
of market concentration continue hindering the development of SMEs
in Armenia. The statistics demonstrates, however, that the market
concentration level is declining, Sahakyan said.
In order to improve the state of SMEs in Armenia, one should remove
the administrative burden, i.e. to switch to a differentiated policy
towards SMEs and large business, he said. Most representatives of
SMEs often lack the relevant documents when applying to the bank,
whereas today the banks are interested in lending to SMEs. Sahakyan
added that the bank's internal regulations with respect to SMEs are
being simplified, the problem still remains unresolved.
To note, according to the data of the Agency of Rating Marketing
Information (ArmInfo), received on the basis of the analysis of the
financial reports of Armenian banks, the quality of the summary credit
portfolio of "nontrade" financing of SMEs considerably worsened over
the past year.
arminfo
Thursday, February 16, 22:47
The small and medium enterprises in Armenia are not in a good state,
Director for Corporate Banking of Ameriabank Gagik Sahakyan said at
today's press conference in Yerevan when commenting on the current
state of SMEs in the country.
According to him, over the past few years the state of the small and
medium enterprises has been considerably improving, however now the
situation is far from being good. "SMEs are not a priority direction
now", Sahakyan said. He added that the monopolies and the high level
of market concentration continue hindering the development of SMEs
in Armenia. The statistics demonstrates, however, that the market
concentration level is declining, Sahakyan said.
In order to improve the state of SMEs in Armenia, one should remove
the administrative burden, i.e. to switch to a differentiated policy
towards SMEs and large business, he said. Most representatives of
SMEs often lack the relevant documents when applying to the bank,
whereas today the banks are interested in lending to SMEs. Sahakyan
added that the bank's internal regulations with respect to SMEs are
being simplified, the problem still remains unresolved.
To note, according to the data of the Agency of Rating Marketing
Information (ArmInfo), received on the basis of the analysis of the
financial reports of Armenian banks, the quality of the summary credit
portfolio of "nontrade" financing of SMEs considerably worsened over
the past year.