Thursday, 21 December 2017
PM Suggests Tightening Control in Key Commodity Markets Ahead of New Year’s Eve
A Cabinet sitting was held today, chaired by Prime Minister Karen Karapetyan. Before proceeding to the agenda, the Prime Minister issued a number of instructions.
Highlighting the need for closer oversight in the dominant commodity markets ahead of the New Year’s Eve, the Prime Minister stated in part, “Economic activity increases several times during the Holiday Season, which leads to a dramatic rise in the demand of consumer goods. This is fraught with certain risks of unjustified rise in commodity prices.”
Taking into consideration this circumstance, as well as the public concerns, the Head of Government suggested the State Commission for the Protection of Economic Competition tighten control over the dominant commodity markets to prevent unreasonable price-hikes, anticompetitive actions, as well as ensure daily monitoring of price changes in the market to get prompt information and take effective measures whenever possible.
The Head of Government gave instructions on completing the second stage of Meghri Free Economic Zone’s activities within a short period of time, simplifying the process of legalization of unauthorized fish farms and providing appropriate privileges.
To ensure legal solutions to some of the problems that have emerged in the application of social packages, the Government adopted a relevant decision. It is specifically envisaged to extend the scope of the mortgage loan repayment service under the social package, allowing social package beneficiaries to repay the mortgages provided under the Affordable Housing for Public Servants and Affordable Housing for Young Families programs.
The Government adopted a decision, which suggests extending for another year - until 2019 – the process of suspending the issuance of foreign citizens’ work permits.
Based on Prime Minister’s relevant instruction, the Government passed a decision on reducing tariffs for drinking water supply and wastewater services by Veolia Jur CJSC. The decision provides for subsidizing AMD 9,702 (including VAT) from AMD 162.702 (including VAT) for each cubic meter of drinking water supplied to customers and 1,712 AMD (including VAT) from the established tariff of 28,712 drams (including VAT) for each cubic meter of wastewater discharged. The Prime Minister instructed the State Water Management Committee to work out a procedure for the Government to provide subsidies only for vulnerable groups.
The Executive approved the program of measures to ensure implementation of the concept of agricultural subsidy areas in the Republic of Armenia. The program will contribute to the implementation of subsidization measures in agriculture in the coming years, which, in turn, will contribute to the creation of favorable conditions for farmers’ activities, more targeted and efficient use of resources, higher competitiveness of production and gradual solution of our country’s food security challenge.
At present, a number of standalone projects are being implemented in the agricultural sector. The concept of agricultural subsidization directions identifies common approaches and directions for implementing a systematic policy in this area. For this purpose, eight activities will be developed and implemented.
Karen Karapetyan highlighted the complex program for the development of the agricultural sector, noting that it will bring about a qualitative change in the sector’s efficiency. “We are absolutely convinced that we are moving in the right direction. Mr. Arakelyan, we are looking forward to having an efficiency-oriented complex program in cattle breeding as well.”
The Cabinet approved a substantive investment and business plan evaluation procedure on community development. According to the reference note, during the regional visits of the Prime Minister of the Republic of Armenia in October-November, 2016, the process of elaborating and presenting investment programs was initiated in the provinces and communities of Armenia. Some 170 investment applications were submitted, of which 19 have already been financed.
Highlighting the validity and reliability of the evaluation of the effectiveness of the programs, it was recommended to define the assessment approaches and principles. Accordingly, it is proposed to carry out a multi-factor assessment and set up an evaluation authority in the form of an inter-agency commission. The programs shall be evaluated in three stages.
The Prime Minister noted that next week a meeting will be held with governors in order to formulate expectations and recommendations. “We have established an appropriate platform with Marz Governors through existing structures - UCO, SME and Agricultural Foundation - which will filter the developed programs. Moreover, next week’s assignments will urge governors to provide property owned by the State and even the communities to businesses, should they provide investment and jobs,” Karen Karapetyan said and suggested being very careful about the use of economic activity supporting mechanisms and instruments.
The Government approved the concept note on the development of territorial growth poles. To provide for balanced territorial development in the country, which is a guarantee of sustainable development, it is proposed to establish “local growth poles” in the regions of the Republic of Armenia with a view to switching to multi-polar, sustainable, proportionate economic development throughout the country.
The right choice of growth poles will result in the actual growth of GDP. The Concept will help build competent regional growth poles. The development of a particular industry in the giant poles will provide a chain of interconnected and adjacent areas, and will spell out spatially on the surrounding areas and the economy of the whole country.
The Executive established the procedure to follow in signing contracts with such compulsory military service personnel as may wish to enter the military service at the place and under the conditions specified by the Ministry of Defense. The decision streamlines the size of and the manner in which salary and other assets will be provided to such personal.
As Defense Minister Vigen Sargsyan noted, the purpose of the decisions is to ensure the implementation of the “I am” program envisaged by RA law on the status of military service and servicemen.
The citizens of the Republic of Lebanon, the Syrian Arab Republic and the Republic of Iraq will have the possibility to get RA citizen’s passport at the diplomatic representations and consulates of the Republic of Armenia by December 31, 2018. The Government decided to extend the pre-established deadline.
