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INACCESSIBILITY OF LOANS HINDERS DEVELOPMENT OF ARMENIAN SME
YEREVAN, September 18. / ARKA /. One of the biggest problems
hindering development of small and medium-sized businesses in Armenia
is inaccessibility of loans and the other big problem are gaps in
the tax administration system, according to Karen Gevorkyan, deputy
director of the National Centre for the Development of Small and
Medium-Sized Entrepreneurship.
He said the core activity of the National Centre for the Development
of Small and Medium-Sized Entrepreneurship is to help solve these
problems. According to him, the Center helps annually some 3000
beginners to get long-term and unsecured loans at affordable terms.
High interest rates on loans are also a problem, he added. 'It is
desirable that banks provide a wider range of loan products,' he said.
With regard to the tax legislation, Gevorgyan said the problems arising
from the legislation are not as important as the difficulties arising
in the course of tax administration, namely, the corruption.
Besides, he said development of SMEs is hindered by the fact that
many entrepreneurs are unaware of the changes in the tax law, of
their rights and responsibilities.
According to the National Union of Employers of Armenia, SME lending
in 2012 amounted to about $15 million, while in 2001-2002 the figure
stood at $30-$40 million, and at about $20 million in 2007-2008.
According to the ministry of economy, in 2007-2012 the
government released 98 billion drams for the promotion of
small and medium entrepreneurship. This year the government
has earmarked 778 million drams to that end. Also 6.6 billion
drams were to be provided for SME development by the Universal
Credit Organization. ($ 1 - 409.61 drams). -0- - See more at:
http://arka.am/en/news/business/inaccessibility_of_loans_hinders_development_of_ar menian_sme/#sthash.DX5PSuxV.dpuf
From: Baghdasarian
YEREVAN, September 18. / ARKA /. One of the biggest problems
hindering development of small and medium-sized businesses in Armenia
is inaccessibility of loans and the other big problem are gaps in
the tax administration system, according to Karen Gevorkyan, deputy
director of the National Centre for the Development of Small and
Medium-Sized Entrepreneurship.
He said the core activity of the National Centre for the Development
of Small and Medium-Sized Entrepreneurship is to help solve these
problems. According to him, the Center helps annually some 3000
beginners to get long-term and unsecured loans at affordable terms.
High interest rates on loans are also a problem, he added. 'It is
desirable that banks provide a wider range of loan products,' he said.
With regard to the tax legislation, Gevorgyan said the problems arising
from the legislation are not as important as the difficulties arising
in the course of tax administration, namely, the corruption.
Besides, he said development of SMEs is hindered by the fact that
many entrepreneurs are unaware of the changes in the tax law, of
their rights and responsibilities.
According to the National Union of Employers of Armenia, SME lending
in 2012 amounted to about $15 million, while in 2001-2002 the figure
stood at $30-$40 million, and at about $20 million in 2007-2008.
According to the ministry of economy, in 2007-2012 the
government released 98 billion drams for the promotion of
small and medium entrepreneurship. This year the government
has earmarked 778 million drams to that end. Also 6.6 billion
drams were to be provided for SME development by the Universal
Credit Organization. ($ 1 - 409.61 drams). -0- - See more at:
http://arka.am/en/news/business/inaccessibility_of_loans_hinders_development_of_ar menian_sme/#sthash.DX5PSuxV.dpuf
From: Baghdasarian