YEREVAN. – We made changes in our first anti-crisis measure; that is, we transformed what is aimed at boosting investment. Prime Minister Nikol Pashinyan stated this at Thursday’s Cabinet meeting of the government of Armenia.
"[But] I have the impression that the business community is not sufficiently aware of this," he added, asking Deputy Prime Minister Mher Grigoryan to clarify the matter.
Grigoryan said that one rule, which he said is a very important strategic rule, came into force on June 20. “Until now, our subsidy ‘tool’ was working with the following logic: loans of up to 250 million drams were being subsidized for up to a year. We have enacted the following definition that if the enterprise, the economic entity has made or will make an addition to the statutory capital in the amount of 50 million drams in 2020, it gets the opportunity to be additionally subsidized in the amount of 400 million drams and for 36 months, which is very significant.
It is a significant benefit. If the addition is made in the amount of 100 million drams, the economic entity has the opportunity to receive a subsidy equivalent to 500 million drams for 48 months; this is a serious incentive.
If we calculate the annual savings of the economic entity in terms of a subsidy of 500 million drams, it is, in fact, its 1-2 years of interest, which it can invest in the statutory capital," he said.
As for tax reforms in Armenia, the deputy PM said that about 64 billion drams of circulation had remained in the economy.