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Official News

Friday, 7 December 2012

Attended By Tigran Sargsyan, Armenian-German Business Forum Kicks Off In Frankfurt

Start a delegation led by Prime Minister's official visit to the Federal Republic of Germany.

The head of government attended a Kommerzbank-hosted Armenian-German business forum in Frankfurt, which was attended by Head of Kommerzbank financial institutions Pierre Fischer, representatives from German and Armenian companies.

The conference was attended by 15 companies from Armenia representing the banking, high-tech, IT, battery manufacturing, energy, mining and agricultural sectors.

The discussions were focused on the development of bilateral business ties, joint implementation of new programs, the macroeconomic situation of the region and the issues.

Welcoming the participants of the conference, the Prime Minister thanked the Kommerzbank for hosting such an important event.

Tigran Sargsyan stressed the importance of holding the conference in Germany as the latter is Armenia's first trading partner and an important investor among the EU-member countries. “Germany has always supported economic development in Armenia, backing economic and political reforms in our country. Therefore, I wish to thank the German government for continued technical and financial support that is the largest of its scale and efficiency within the EU,” the head of government said.

Answering a question on Armenia’s economic attractiveness, the Prime Minister stated in part, “First of all, Armenia has a stable political system. Our government seeks to strengthen democracy and the rule of law, promote transparency and control over the management of the system construction.

The macroeconomic situation is stable. We were able to fully meet the social obligations of the State during the crisis years, keeping the country safe from social turmoil. Our banking system is strong and well-developed.

The insurance market is developing rapidly. We are taking steps to deepen and broaden the market of financial services. Targeted policy is being implemented to improve the business environment.

We have been abiding by an investment-conducive policy, which international organizations describe as the most open in the CIS.

The Government has developed and is implementing a strategy for the development of export-oriented industries. We have highlighted a number of priority areas: precision engineering, pharmacy, information technologies, jewelry, diamond processing, brandy making etc.

Research labs and other infrastructures are being co-founded by the State to support startup businesses.

Our efforts are have already yielded the first results. In the first half of 2012, industry grew by more than 10 percent.

To involve high-tech and innovative industries, relevant laws and free economic zones are being established.

In terms of export opportunities, it is important for Armenia to join the CIS free trade agreement. We enjoy a GSP + arrangement with the EU, which resulted in a zero customs duty rate for many of our products exported to the EU.

In addition, talks are underway with the European Union on a deep and comprehensive free trade area agreement. We hope for successful completion so that it can come into effect by next yearend.

Armenia has investment promotion and mutual protection arrangements signed with 39 countries, inclusive of Germany, with double taxation avoidance agreements signed with 32 countries of the world. As far as Germany is concerned, talks to that effect will start next March as decided at the latest meeting of the Armenian-German intergovernmental commission,”
Tigran Sargsyan stated.

Then the Prime Minister dwelt on the development of programs and policies designed for the most prospective sectors in terms of long-term investment: information technologies, agriculture, renewable energy, tourism, as well as pharmaceutical and chemical industries.

Concluding his speech, the Premier wished fruitful work to the conference and expressed hope that new business ties will be established and specific arrangements reached future joint projects.

Answering the audience’s questions, Tigran Sargsyan spoke on Armenia’s European integration process, including the deep and comprehensive free trade agreement-associated talks, the Armenian-Russian strategic partnership and economic relationship, the settlement of Armenia-Turkey relations. Tigran Sargsyan referred to the possibility of resuming transits through Georgia, including the Russian-Georgian railway.

Thanking the Prime Minister for attendance, Mr. Pierre Fischer said it might contribute to the further development and strengthening of bilateral business ties.

Armenian and German companies presented a number of joint business projects, discussed ways of enhancing their efficiency and new undertakings.

Tigran Sargsyan said in the conference finals: “While locating Armenia on the global financial map, Fitch and Moody’s are pointing to the geopolitical risks facing our country.

We need to carry out more reform programs to neutralize the negative geopolitical risks. This is what the Government and our political team is committed to under the leadership of President Serzh Sargsyan.

We are pleased that the recent years’ reforms enabled us to shift from crisis toward recovery. The last three years’ economic indicators suggest that the EU’s financial and technical support has had a positive impact. We will be better poised to defy challenges in collaborating with the European Union and European investors. Today’s conference is supposed to combine efforts and achieve significant results.”

Later today, Tigran Sargsyan met with Kommerzbank Board member Michael Reuters.

August 2020