Office of the Prime Minister
Aug 30 2011

Prime Minister Tigran Sargsyan participated in the consultation of the
Central Apparatus of the RA Ministry of Foreign Affairs and head of
diplomatic representations held August 30-31 at the Karen Demirchyan
sport-concert complex. Tigran Sargsyan presented the current state
of the economy, the Government's future programs and activities. The
Prime Minister summed up the economic results of the first half of
2011 and noted, that in 2011 4, 6% of inflation is expected in the
gross domestic product. Referring to the inflation observed in our
country, the Prime Minister said, that Armenia has already reduced
the 10% inflation level to 5%, which will create even more favorable
conditions to restrain inflation in 2012.

Speaking about the Government's future plans, the Prime Minister noted
that they include the improvement process of business environment in
Armenia. Important events in that direction, particularly in taxation,
customs service development, introduction of an electronic filing
system have been implemented this year, which should significantly
reduce the contact between tax inspectors and representatives of the
business sector. "Today in Armenia it is possible to register a company
electronically within 15 minutes. This is one of the most important
factors in improving the business environment," the Prime Minister
noted. The next steps of the reform, within the framework of deep
and comprehensive free trade agreement with the EU, are directed to
putting our country's customs procedures in line with the best European
Standards, registering intellectual property protection system, etc.

According to the Head of the Government, the reform program increases
the effectiveness of the management system, which also includes
comprehensive anti-corruption action plan. "It is a long-term plan
and implies, first of all, to the specification of functions and
defining responsibilities of ministries, inspectorates, state agencies,
non-profit organizations. Program policy development, implementation
and monitoring should be the main function of the ministries; the
remaining functions should be carried out by inspections, non-profit
organizations and state agencies."

The Prime Minister informed the diplomats that for the first time
in our country an industrial policy concept and its implementation
plans are being carried out. The economic structure of Armenia of
coming 10 years will be presented in it, revealing the potential,
relative advantages, as well as the limiting factors. Referring to
the north-south road corridor construction, the Prime Minister noted
that it will comply with the highest international standards. "Such
program has never been implemented in Armenia before. Its total volume
is estimated to be worth USD 1, 5 billion. A contract about USD 500
million has already been signed; a road construction contest has been
announced and 15 foreign companies have already filled participation
applications. The construction works are planned to begin this year."

According to the Prime Minister, Iran-Armenia railways construction
activities are also in the process. Works about the railways'
development, construction schedule and financing are being carried
out with corresponding Russian and Iranian departments.

From: A. Papazian