Businessmen to Reduce Exports and Demand Government’s Support
27.03.2015
14:00
As Russian ruble plunged, Armenian agricultural product exporters have had to face a series of problems. To mitigate the damage a group of exporters have proposed to Armenia's government to revise the terms of the loan repayment and provide financial assistance to farmers who supply raw materials for businessmen. The Government is ready to discuss possible assistance options and recommends businessmen to diversify the export markets.

The Media Center held a discussion entitled “Situation on the Product Market: Impact of Ruble-Dram Fluctuations.” The speakers included: Gagik Makaryan, Chairman of the Republican Union of Employers of Armenia; Vazgen Safaryan, Head of the Union of Native Producers of Armenia; Avik Gasparyan, Deputy Director of Proshyan Brandy Company; Vilen Khachatryan, economist; Gagik Kocharyan, Head of Department of Trade and Markets Regulation, Ministry of Economy; and Armen Yeganyan, Head of SME Development Department, Economy Ministry.

Avik Gasparyan numbered the losses businessmen had to suffer: “Our company, in particular, has recently suffered great losses exceeding 500 million drams since the volume of exports to Russia is large.” The company, Gasparyan added, is determined to stay on the Russian market as it took them great efforts and financial investments to get their position stable there.

The businessmen do not seek neither expect financial support from the Government. “We understand the country has limited possibilities. Now what we need is to revise the timeframes for dollar loan repayment. The Government may provide financial support to farmers to avoid problems when agricultural product is supplied to manufacturers,” said Gasparyan.

A businessman, present at the discussion, suggested compiling a list of affected enterprises and providing them a differentiated support because "the amount of damages and problems are different."

Gagik Makaryan told the journalists Armenian entrepreneurs saw first losses last December when Russian ruble plunged. “Refusing to export is too big a risk as ready products remain in warehouses while businesses cannot recover their financial resources to sustain their business activities if there are no sales,” Makaryan said. Armenian businessmen have small money stock from the sales on the Russian market because ruble has declined and inflation is restrained through artificial means, the speaker believes.

A series of meetings, he said, have been held with two dozen small and medium entrepreneurs, they presented their damage calculations and it is already clear that 20 companies have suffered losses of 7.8 million dollars. "These are fresh food, canned food, wine and brandy exporting companies," he added.

Vazgen Sargsyan is optimistic and believes the appreciation of Russian ruble is underway while “in Europe people are more inclined to the idea that new sanctions should not be imposed on Russia. There is hope that the situation will have stabilized by summer.”

Armen Yeganyan – who said the Government is willing to discuss support options - advised businessmen to work on the diversification of export markets. “To avoid such risks, however, companies must work to improve the quality of their products, as well as diversify products and markets.”

“As of March 20, according to the National Statistical Service, Armenia's foreign trade decreased by 27.7%, exports decreased by 25.2% and imports - 28.6%. We have seen decline of imports and exports by one quarter. This is one of the most negative phenomena,” he said, adding dollar credit losses incurred will be refunded if with the help of the Government, "transition to dram loans" will be made.

Arshaluys Mghdesyan, Editor-Coordinator

Please contact the author at arshaluismghdesyan@pjc.am.

 

Videos
Print Friendly and PDF
More Press Releases
PUBLIC JOURNALISM CLUB PARTICIPATED IN CAREER AND ENTREPRENEURSHIP FAIR
17.11.2017
10:00
Media Center Project of the Public Journalism Club participated in Career and Entrepreneurship fair held on November 17.
“Students Against Army Respite: Demands and Proposals”
08.11.2017
11:00
A discussion entitled “Students Against Army Respite: Requirements and Proposals” was held at Media Center on November 8 attended by Aren Manukyan, Member of the initiative “For the sake of development of science 2004” and Misha Tadevosyan, Member of Education Civic Initiative, Education Expert.
“Vision of RA Security and Defense of Yelq Alliance: Pre-Election Program and Practical Steps”
02.11.2017
13:00
Parties of the National Assembly of the sixth convocation have separate provisions and recommendations regarding the country's security issues in their electoral programs.
“Cultural Figures Propose to Install “Bread Bringer” Arthur Sargsyan's Memorial”
02.11.2017
11:00
Media Center, November2, Yerevan. Cultural Figures Propose to Install “Bread Bringer” Arthur Sargsyan's memorial in Yerevan and presented their proposals at Media Center on November 2.
“Draft Law on Military Service and the Status of Servants: Won’t the Reforms in the Army Hinder Science?”
26.10.2017
19:30
The Media Center held a debate, entitled “Draft Law on Military Service and the Status of Servants: Won’t the Reforms in the Army Hinder Science?” in “A1+” TV Pavilion with online broadcasting on October 26.
Follow us on social networks
Registration of events
Services
Today at Media Center
Videos
Press Releases
Armenia-Turkey Events