Armenia`s authorities to reduce compensations under Targeted Program  for Attracting Highly Qualified Specialists 

ArmInfo.  The Armenian government will extend the validity of the Targeted Productivity  Enhancement Program, but will reduce the amount of salary  compensation and other equivalent payments to highly qualified  specialists within the framework of the Targeted Program for  Attracting Highly Qualified Specialists, and will narrow the circle  of its beneficiaries.

On December 27, at a meeting of the Cabinet of Ministers, Economy  Minister Gevorg Papoyan presented the relevant draft decision and  recalled that in March 2020, the government approved the Targeted  Productivity Enhancement Program aimed at increasing financial  accessibility for businesses, modernizing production capacities and  stimulating the import of new technologies in the Republic of  Armenia.  Assistance is provided in the form of a subsidy in the  amount of 6-10% of the annual interest rate of the targeted loan or  leasing.

From March 2022 to December 1, 2024, 6,559 contracts with a total  portfolio of 341.8 billion drams were concluded within the framework  of the program. In particular, the portfolio formed within the  framework of the target program in 2022 amounted to 60 billion drams,  in 2023 - 148 billion drams, in 2024 as of December 1, 2024 - 134.0  billion drams. Within the framework of the target program, as of  November 1, 2857 entrepreneurs purchased new equipment.

In order to implement the target program, the Ministry of Economy  signed a subsidy agreement with all banks operating in Armenia and  other licensed financial organizations. The number of partner  financial organizations within the framework of this program is 23.

Last year, within the framework of the target program, the subsidy  amounted to 7.9 billion drams, in 2024, the planned budget funds are  16.3 billion drams. In 2025, it is planned to spend 19.3 billion  drams. 82% of the portfolio formed within the framework of the target  program (268.8 billion drams as of 01.12.24) was directed to  financing small and medium-sized enterprises. The monthly subsidy is  up to 1.5 billion drams.

The Cabinet of Ministers also made changes to the Target Program for  Attracting Highly Qualified Specialists. In particular, it is  proposed to reduce the amount of compensation for accrued salaries  and other equivalent payments to highly qualified specialists to 10%  instead of the current 20%, 30% instead of 50%, and 50% instead of  70%.

According to Papoyan, from January 2023 to December 1, 2024, 763  applications were received from about 60 organizations. At the  moment, there are 45 beneficiary organizations, which employ 510  highly qualified specialists.

Companies engaged in financial and insurance activities, retail and  wholesale trade will be excluded from the list of beneficiaries of  the program.