YEREVAN. – As a result of the increase in the price of electricity, some small and medium-sized enterprises (SMEs) in Armenia will close down in a year.

Economist Gagik Makaryan, who is also Chairman of the Republican Union of Employers of Armenia, told the aforesaid to Armenian News-NEWS.am. He stated this commenting on the news that the Electric Networks of Armenia CJSC is forcing the country’s SMEs to sign contracts, pursuant to which they will have to pay the increased price for electricity.

In Makaryan’s words, 81 percent of the interviewed representatives of SMEs describe their condition is unsatisfactory.

“This was before the electricity [price] hike, but now, the people’s situation will be direr,” said the economist. “Last year’s electricity and [natural] gas [price] hikes should be added to this, and we’ll have quite a lot of money.” He added that this price hike will cause inflation, too.

Gagik Makaryan also stated that in these circumstances, even government subsidies cannot help the SMEs.

Prime Minister Hovik Abrahamyan, during a recent Cabinet meeting, had announced that the government will not subsidize the electricity price hike for Armenia’s large business, whereas a respective decision with regard to the small and medium-sized enterprises is still being discussed.