Privatization Undermines Economic Efficiency

YEREVAN (Noyan Tapan)–The process of privatization in Armenia is inefficient and does not serve its basic purpose to raise the economic efficiency–experts said at a conference organized by the Democratic Party of Armenia.

Moreover–it pursues to disperse Armenia’s economy within international organizations.

Among other negative phenomena economist Mikael Melkoumian also mentioned that it was impossible to put into practice the arrangemen’s on the sums obtained as a result of privatization–in particular–the allocation of target credits (55 percent of sums)–increased expenditures on social security of population (20 percent) and the indexation of deposits at savings banks (15 percent).

The scanty budget revenues from privatization (about 374 million drams as of July 1) can account for that. The latter circumstance–in the speaker’s opinion–is the result of the fact that privatized enterprises were valued much below their real price and were almost completely purchased on privatization certificates.

A working group consisting of eight people was set up to study the current situation and propose alternative ways of privatization to the government of Armenia.

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