YEREVAN. – The FC Mika (Yerevan) stadium’s mandatory transfer to the Government of Armenia will not compensate for all debts of Armavia Airline Company.

Deputy Minister of Finance Pavel Safaryan noted the aforementioned at Thursday’s Cabinet session, and in response to the query as to why solely $9 billion is now paid from the $24-million debt.

“The rest of the money will be paid pursuant to the law, but a portion of the debt will be redeemed,” Safaryan noted.

Due to the absence of buyers in the mandatory online tenders, the abovementioned stadium was passed to state ownership for Armenian drams equivalent to approximately $22 million. A portion of this amount will be used for the redeeming of the tax debts accrued by Armavia and Mika Corporation, and a part of this money is the value-added tax (VAT) on the transfer of property.

Armavia Airline Company, which was Armenia’s national air carrier, suspended its flights as of April 1, 2013 and declared about starting a process of bankruptcy. The company had financial difficulties in recent years, due to which many of its flights were canceled.