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Official News

Friday, 25 March 2005

Today the Business Support Council (BSC) has held a meeting at the Office of Government, which was presided at by Prime Minister A. Margaryan, Chairman of the BSC.

The Council examined the progress in the discharge of the tasks set at the previous meeting, reviewed the 2004 annual report on BSC activities, discussed the study project for the assessment of administrative procedures applicable to entrepreneurship in Armenia as implemented by the World Bank and the IFC's Foreign Investment Advisory Service (FIAS) at the initiative of the GoA. The meeting agenda was comprised of other issues of topical interest, too.

Concerning agenda item 1, BSC Secretary Vahagn Movsisyan, Executive Director of the Armenian Development Agency, reported that the assignments given at the latest meeting were all fulfilled in the specified time frames. In particular, with regard to the focus placed upon a simplified reporting procedure to be followed by economic operators through streamlined flows of financial statements free from overlaps and duplications, unifyed reporting methodologies, as well as concerning the facilitation of information and statistical data exchange between different government agencies, it was mentioned that a considerable amount of work had been performed by the Ministry of Finance and Economy in terms of summarizing, comparing and analyzing the materials received. The analyses carried out resulted in a program of action developed with the view of simplifying and streamlining the above procedures and forwarded to the BSC Secretariat. Concerning another assignment, it was reported that a consultative meeting had been held at the Prime Minister's Office to discuss the draft government decision on the procedure to be followed in producing such documents as relate to the mutual settlement or recovery of accounts for other liabilities contracted by the tax-payers under VAT-free transactions, as well as the delivery of certificates in justification of the amounts subject to recovery. As a result of the arrangements made at the said consultative meeting, the above-mentioned procedure was enacted by GoA Decision No.1923-N of December 2, 2004.

In compliance with another assignment, a plenary meeting of the BSC as attended by those members of the BSC and the IT Development Support Council representing the business circles had been called to review the findings of the survey implemented by the FIAS (Foreign Investment Advisory Service) in assessment of the administrative procedure applicable in Armenia with respect to business activities. At the same time, a time schedule had been worked out for such improvements of the business environment as outlined in the proposals made by the Ministry of Trade and Economic Development based on the findings of the survey and the outcome of the discussions held, which was later on forwarded to the stakeholders for consideration. It was reported that extended discussions had been held at the Ministry of Finance and Economy over the finalized package of Armenia's proposals under the Millenium Development Goals. The package has already been endorsed and detailed comments thereover are due out in the months ahead. The program of action will be available on-line and a breakdown by marz components will be accessible for the province-based population. "The implementation of this program sets new tasks before the State and the business community in terms of ensuring economic development, sustainable growth, poverty reduction so as this important process might be completed with success," the Prime Minister said.

The members of the Council took notice of the 2004 end-of-year report presented by BSC Secretary Vahagn Movsisyan.

Then RA President's Chief Economic Adviser Mr. Vahram Nercissyants, Deputy Chairman of the CITD, reported the findings of the above-mentioned survey by the FIAS in assessment of the administrative framework applicable to business operations in Armenia. In the meantime, by summarizing the key points of the study at the request of the speaker, Mr. Gohan Akinchy indicated that owing to specific efforts exerted by the GoA and the BSC, the business and investment environment had been ameliorated in Armenia considerably over the recent years with the latter featuring in the PRSP as a key factor for poverty reduction. At the same time, according to him, in spite of the tangible achievements had, the reforms in this area were in need of further improvement as there still remained a number of sectors with clear-cut obstacles to the development of entrepreneurship, among which tax and customs formalities and the efficiency in the use of the borrowed funds were mentioned as the most important ones.

Mr. Nercissyants noted that a series of consultative meetings involving the concerned ministries, donor organizations and businessmen were held in January-February, 2005. The comments and proposals made at these meetings had been summarized subsequently and forwarded to the BSC membership.

Upon completion of the debates, Prime Minister A. Margaryan instructed the entities-in- charge to develop a plan of action for the betterment of the business environment in our country, which should be based on the proposals and comments made so far and submitted for the consideration of the government following an advance review by the BSC .

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