ArmInfo.On the initiative of the Ministry of Economy of the Republic of Armenia, a workshop was held on December 13 in Yerevan on the topic "Capital Investments and Capital Markets: Creating a Favorable Institutional and Legislative Environment" with the participation of representatives of financial institutions, government departments, and experts.
According to the Deputy Minister of Economy of the Republic of Armenia Naira Margaryan, the main goal of the meeting is to create a roadmap that solves the institutional and legislative problems of the capital market and investment instruments, which will then be transferred to the relevant departments for consistent implementation.
"We wanted to bring together experts from the field on one site, but not for discussion, but for work, as a result of which groups will be formed in accordance with the peculiarities of the problems identified," she said.
To the question of the ArmInfo correspondent Margaryan noted that the problems of the capital market are diverse, in particular, the latter concern legislative regulation, creating an appropriate environment, transparency and accountability, etc. Regarding the first group of problems, the deputy minister emphasized that the legislation does not have incentive mechanisms for companies to enter public markets, so that the latter are interested in conducting transparent activities to attract non-bank financing.
During the welcoming speech, Minister of Economy of the Republic of Armenia Tigran Khachatryan noted that over the past year and a half, taking into account the policy of the government, real prerequisites have appeared in Armenia for the development of the securities market and stock exchange than ever.
Touching upon the report of WB Doing Business, in which Armenia is noted as a country with an undeveloped capital market, the minister emphasized that success, by and large, depends, including on the activity of companies on the stock exchange, operations with securities. In this regard, Khachatryan noted that earlier, for private companies, raising funds through shadow mechanisms was more profitable and not comparable with those resources that could be obtained through the stock exchange platform, which could not but have a negative impact on the development of the RA securities market. However, as the Minister continued, today tax and customs administration excludes the prospect of such a development. <I do not exclude that today a number of companies operate in the market in conditions of unequal competition. I must emphasize that this will not last long>, he said. After welcoming speeches, a member of the Directorate, Advisor to the General Director of Ameriabank, a recognized expert on capital markets, Tigran Jrbashyan, asked the Minister of Economics. He said that for the first time he faced problems related to the capital market back in 1992, which still could not be resolved. "Until we understand why those who stood at the origins didn't succeed, we won't succeed either," he remarked.
At the same time, Jrbashyan emphasized the importance of creating the final vision and goals and objectives that the government sets for the development of the market. <There is a question of strategic planning. For example, we want to have 5 large enterprises, and a market of about $ 1 billion, and we will assume that the capital market is formed. Or do we want to have 500 companies? Until we understand what we want, the attitude to the events under discussion will be different>, he said, noting that it is impossible to implement the entire list of events until a focus is defined.
Jrbashyan noted that before moving on to discussions, it is necessary to have a vision of the ultimate goal and to have serious analytics regarding the obstacles to the development of the capital market, which, according to him, was not in those days, nor now. <Is there analytics? If yes, then share with us>, said the banker. In response to the voiced comments, the Minister of Economy noted that by and large he agrees with what he heard, but does not consider holding today's discussions unnecessary. <I do not exclude the possibility that in the end we will come to the conclusion that we need a separate discussion to agree on goals. Let's work, and in the end it will be visible>, - Khachatryan said.