Government approves a package of state assistance to business

ArmInfo.On March 26, the Armenian government unanimously approved a package of state assistance to business proposed by the Ministry of Economy of the  Republic of Armenia.

The conditions for providing business assistance tools during the  assignment were presented by Armenian Minister of Economy Tigran  Khachatryan.

According to him, legal entities and private entrepreneurs who have  worked for at least one year in any of the sectors  of economic  activity, with the exception of the financial sector and the gaming  business, and who have a healthy tax and credit history, can take  advantage of the state action.

In particular, assistance (co-financing, refinancing and subsidizing  of interest rates) is provided to cover the following expenses:   salaries, but for each employee, not more than 500 thousand drams per  month for a maximum of three months; tax payments to state or local  budgets, payment of duties and other obligatory payments; purchase of  raw materials or imports, provided that the entire volume must be  used in Armenia in order to obtain finished products and if the  economic entity has the necessary and appropriate production  capacity; import of equipment that will be used without fail to  organize production in Armenia or to expand production; payment for  utilities (electricity, water, gas, communications,  telecommunications); import of food products by trading companies,  provided that the purchased or imported products will be sold  exclusively in the territory of the Republic of Armenia. According to  the Minister, in case of compensation of employees' salaries, the  amount of co-financing will be 50%, refinancing -100%, and subsidized  rates are provided in full; 

In paying of taxes, duties and other obligatory payments,  co-financing will be 50%, refinancing - 100% and subsidizing rates -  in full; 

In importing of equipment: co-financing - 25%, refinancing - 50% and  subsidizing rates - 5%; In raw materials purchase: co-financing -  40%, refinancing - 50%, subsidized rates - up to 6%; 

Communal payments: co-financing - 45%, refinancing - 90%, and  subsidized rates - 10%; 

Food imports: co-financing - 30%, refinancing - 50%, subsidized rates  - 8%.  

<Considering the fact of state co-financing, banks and credit  organizations may request a pledge amount that will be less,  commensurate with state aid, "Khachatryan said.  Assistance, he said,  will be provided that the maximum percentage of the integral in drams  is 12%, and 9% in foreign currency.