Armenian government changing procedures for conducting electronic  auctions and alienating property

ArmInfo.  The Armenian government is changing the procedure for conducting electronic  auctions and alienating property. The decision was approved by the  Cabinet of Ministers on December 11.

As stated by Arnak Avetisyan, Chairman of the State Property  Management Committee, a unified approach to the principles and  conditions for alienating all property is being established.  Specifically, the duration of the electronic auction will be three  days instead of the current one business day, allowing for an  extended period for submitting bids.

To reduce the risks of unfair competition, the advance payment for  lease auctions will be increased to 300% depending on the starting  price. Additionally,  a winning bidder who fails to sign the protocol  will be disqualified from participating in subsequent auctions for  the same lot. The deadline for publishing lot announcements has been  extended to allow potential buyers more time to inspect the  properties and submit a bid: for movable property - at least 15 days  before the auction; for real estate auctions - at least 45 days; for  real estate tenders - at least 60 days.

For the sale of undeveloped land plots, a certificate of urban  development restrictions will be included. The basis for the sale  will be the current market value, not the cadastral value, which  approximates the market value. For movable property, the first  auction will be held at 100% of the assessed value.  If the property  fails to sell, the starting price for subsequent auctions will be  reduced by 15%, with no lower limit. For real estate, the starting  price at the first auction will be 100% of the assessed market value;  if the property fails to sell, the second auction will be 85%, and  the third 70%. In the case of a direct sale, the price will be set at  100% of the estimated market value, except in special cases  determined by government decision. The goal of the reforms is to make  the processes of alienation and leasing of state property more open  and transparent, thereby ensuring a trusting and fair environment for  society.