Financial Crisis Has Already Affected 90% Of Armenian Companies

[Madatian Greg]

FINANCIAL CRISIS HAS ALREADY AFFECTED 90% OF ARMENIAN COMPANIES

PanARMENIAN.Net
06.05.2009 20:41 GMT+04:00

/PanARMENIAN.Net/ A poll, involving 60 small and major companies
in Yerevan and RA regions, showed that the crisis has affected 90%
of them, Economy and Values Research Center stated.

According to Economy and Values Research Center Chairman Manuk
Hergnyan, 70% of organizations' main issues are caused by reduced
sales volumes, untimely payments and even non-fulfillment of
payments. "35-40% of companies had difficulties in attracting
financial means, " he said, adding that majority of companies plan
to cut administration expenditures and delay planned investments.

40% of organizations polled plan job cuts, and 20% - salary reductions,
especially in industrial spheres. On the other hand, the crisis has
had a positive influence on a number of Armenian companies, as far
as competitors' weakened positions, raw material and equipment price
reductions are concerned.

"Around 80% of entrepreneurs polled believe that the crisis will
exacerbate in 2009," Hergnyan reported.