Politics 21:23 08/06/2021 Armenia

Questions that have fact-based answers 1 - 'Property for debt' deal

Lies tend to grow during election campaigns and during wars. Those lies sometimes require answers based on facts. The unanswered questions  - no matter how false and illogic they might be - will continue to spread in their illogic logic. 

 

Here is the case of the so-called 'Property for debt' deal, which has been discussed much in the past days. The discussions, however, lacked the factual basis, since they are articulated deliberately in a way to suggest that "Kocharyan gave everything to Russians," "the operating plants were handed over to Russians," etc. 

 

The accumulated state debt 

 

During the years of first President Levon Ter-Petrosyan, Armenia accumulated some $100 million debt to Russia incurred since 1992-94s. Assuming the post of the president in 1998, the power in Armenia led by Robert Kocharyan received that debt as a 'heritage' from the previous power. In 2000s, the issue of debt repayment arose. 

 

Was it possible to pay the debt in cash?  

 

The consequence of clearing the debt to Russia amounting to $98 million could result for Armenia having difficulty to increase salaries for teachers, doctors, the military, adding pensions, carrying out capital construction envisaged by the state budget and making other expenses. That would first and foremost leave an impact on all citizens. In other words, paying the debt in cash would mean to borrow again. 

 

Enterprises in exchange of debt 

 

The 'Property for debt' deal was agreed as a result of negotiations between Armenia and Russia and was signed in 2002. According to it, Armenia offered to Russia some of its major assets to cover the debt. The list includes: 1. Hrazdan thermal power plant, 2. Mars electronics plant, 3. Yerevan Materials Science Research Institute  4. Yerevan Computer Research and Development Institute (Mergelyan), 5.Yerevan Automated Control Systems Scientific Research Institute.

 

What did the deal give to Armenia?  

 

First, the deal enabled the government of Armenia to clear its $99 million foreign debt, easing not only the material but also the moral burden of having a debt. 

 

Secondly, apart from the fact that the debt amounting to $99 million was fully covered, the 'Property for debt' programme allowed the Russian side to make investments worth of $100 million into the Armenian economy. That is to say, the programme not only didn’t harm the economy, reduced the foreign debt by $100 million, but also secured additional $100 million of Russian capital to enter Armenia's economy. Those investments have been and are continuous. 

 

Thirdly, according to the deal, Armenia ensured the preservation of those enterprises and then their development and modernization. Not to mention the creation of new jobs for Armenian citizens, employment opportunities and the taxes paid to the budget. 

 

Fourthly, due to the programme, the content of Armenia-Russia trade relations switched from ‘debtor-creditor' domain to economic partnership. 

 

What happened to those enterprises? 

 

The answer about Hrazdan thermal power plant is clear and obvious. The plant ioperates and produces electricity. The other three scientific research institutes merged and operate under the name Yerevan Computer Research and Development Institute which paid $207 million in taxes to the state budget in 2017. 

 

Later, “Alliance” free economic zone based on “RAO Mars” CJSC and “The Yerevan Computer R&D Institute” CJSC was established oriented to the production and exports of high and innovative technologies. 

 

The free economic zone is home to production of LED lights, operation of PharmaTech pharmaceutical manufacturing company, of unmanned aerial vehicles (UAV) by Instigate CJSC, Technology and Science Dynamics Inc./Armtab Technologies, manufacturer of Armenian tablets and smartphones.  Since the launch of the free economic zone, an investment worth some $2,8 billion have been made with around 326 job places created thus far. 

 

Based on the above, the legitimate question arises: who is not happy about people in Armenia who have jobs and income. 



Source Panorama.am
Share |
Տեքստում սխալ կամ վրիպակ նկատելու դեպքում, ուղարկեք խմբագրին հաղորդագրություն` նշելով տվյալ սխալը, այնուհետև սեղմելով Ctrl-Enter:

Newsfeed

17:12
She said yes: Marriage proposal at Hayat Project concert in Gyumri
A young man proposed to his beloved at a Hayat Project concert in Gyumri, Armenia’s second largest city. In a video posted online, the...
16:45
Opposition MP slams Pashinyan's Artsakh statements
Opposition Hayastan faction MP Ishkhan Saghatelyan has expressed support to the Artsakh government in exile following Armenian Prime Minister...
16:04
MP Aghvan Vardanyan visits arrested activists
MP Aghvan Vardanyan, who represents the opposition Hayastan faction, on Thursday visited the Armavir Penitentiary where activists Vazgen...
15:36
Armenian opposition MP visits border villages
Opposition MP Tigran Abrahamyan has visited the villages of Voskepar and Baghanis in Tavush Province adjacent to the border areas demanded by...
15:04
Ex-Yerevan mayor setting up new party
Former Yerevan Mayor Hayk Marutyan is setting up a new party in the near future, his team has confirmed to RFE/RL’s Armenian Service....
14:36
Armenia to send 29.94 tons of humanitarian aid to Gaza
Armenia will deliver 29.94 tons of humanitarian aid to Gaza ravaged by the conflict with Israel. The decision was approved at a cabinet...
14:07
Expert: Pashinyan decided to terrorize Artsakh leaders
Political analyst Suren Surenyants has criticized Prime Minister Nikol Pashinyan’s statements on Artsakh leaders at a cabinet meeting on...
13:35
Analyst: The West doesn't care about Armenia
The West wants Armenia and Azerbaijan to sign a peace treaty as soon as possible and Armenia's territorial losses do not matter to it,...
13:06
Moscow concerned over anti-Russian bias of Armenia-EU-US meeting
The Armenia-EU-US meeting scheduled for April 5 is causing Moscow’s concern as Washington and Brussels are openly discussing its...
12:37
Pashinyan: Some circles displaced from Karabakh take actions threatening Armenia's security
Prime Minister Nikol Pashinyan warns that the actions taken by “some circles” forcibly displaced from Nagorno-Karabakh (Artsakh)...
12:04
Artsakh dissolution decree was 'the only way' to save people, president says
President Samvel Shahramanyan claims his decree ordering the dissolution of the Artsakh (Nagorno-Karabakh) Republic was the “only...
11:30
Japanese supplement products recalled after two deaths and over 100 people hospitalized
Health supplement products believed to have caused two deaths and sickened more than 100 people have been ordered to be taken off store shelves...
11:15
Today is Holy Thursday
The week leading up to Easter or Holy Resurrection is called Holy Week (in Armenian Avak Shabat). During this period, the Armenian Apostolic...
11:00
Upcoming Armenia-US-EU meeting not directed against any third party – Foreign Ministry
The high-level meeting scheduled for April 5 in Brussels is aimed at strengthening Armenia-EU-US cooperation and is not directed against...
17:00
Azerbaijan's team opts out of Sambo World Cup in Yerevan
Azerbaijan's national team will not participate in the Sambo World Cup to be held in Yerevan, Armenia, Azerbaijani Sambo Federation official...
16:45
Biden calls Putin 'butcher'
US President Joe Biden has disparaged his Russian counterpart Vladimir Putin for the second time in two months, publicly calling him a...
16:30
Armenian parliament speaker defends land handover to Azerbaijan
Armenian National Assembly Speaker Alen Simonyan has defended the plans to hand over border villages in Tavush Province to Azerbaijan. He...
16:04
Azerbaijan must create conditions for safe return of Armenians to Nagorno-Karabakh, UK says
The UK government is clear that Azerbaijan must create the conditions for a safe and secure return of ethnic Armenians who were displaced from...
15:35
Photo campaign calls for release of political prisoners in Armenia
A photo campaign for the release of Armenian opposition activists has been launched in Yerevan. Photos of political prisoners Narek...
15:15
Arthur Abraham's father dies at 68
German-Armenian boxing star Arthur Abraham’s father, Grigor Abrahamyan, has died in Berlin at the age of 68. “We’re deeply...
15:00
Armenian MP warns of threats after possible land handover to Azerbaijan
Opposition MP Tigran Abrahamyan has warned of threats to a number of settlements in Armenia amid Prime Minister Nikol Pashinyan’s signaled...
14:31
EU mission hosts French ambassador to Armenia
The EU Mission in Armenia (EUMA) on Wednesday hosted French Ambassador to Armenia Olivier Decottignies and members of the French...
14:06
Azerbaijan opposes Armenia-EU-US conference
The Azerbaijani Foreign Ministry has deplored the EU-Armenia-US joint conference scheduled for 5 April, warning that it will create...
13:36
Political prisoner Vazgen Saghatelyan slams Pashinyan in letter from prison
Political prisoner Vazgen Saghatelyan has blasted Armenian Prime Minister Nikol Pashinyan and his regime for efforts to silence their critics in...
12:34
U.S. aims to encourage Armenia and Azerbaijan to bridge differences – State Dept.
The objective of the United States is to encourage Armenia and Azerbaijan to bridge their differences, U.S. State Department...
12:15
Ukraine tells EU to hand over 'missing' €5B in Russian asset profits
Ukraine is pushing for another €5 billion from the proceeds generated by frozen Russian assets that the EU has decided to withhold from the...
12:00
Eurovision 2024: Semi-final running orders revealed
The running orders of the Eurovision Song Contest 2024 semi-finals have been revealed. Armenia’s Ladaniva will perform 8th in the...
11:45
Today marks Holy Wednesday
The week leading up to Easter or Holy Resurrection is called Holy Week (in Armenian Avak Shabat). During this period, the Armenian Apostolic...
11:30
Denialists Erdogan and Netanyahu shamefully exploit the term genocide to bash each other
By Harut Sassounian www.thecaliforniacourier.com For several decades, Israel and Turkey were in a honeymoon, supporting each other...
11:10
SME loan portfolio of Ameriabank reported more than 30% growth in 2023
The small and medium enterprise (SME) loan portfolio of Ameriabank increased by more than 30% in 2023 to reach to AMD 222.6 billion as of...

Follow us and get updates!

Most popular articles

{"core.blocks.header.spell_message1":"Selected mistake: ","core.blocks.header.spell_message2":"Send a message about the mistake?"}