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EBRD President visits Armenia to show support for investment and economic reform
High-level meetings planned for 6 and 7 May 2001
The President of the European Bank for Reconstruction and Development (EBRD), Jean Lemierre, arrives in Armenia on Sunday to explore how the EBRD can help to bolster investment and support economic reform.
On 6 and 7 May Mr Lemierre will meet with President Kocharyan, Prime Minister Margaryan and other government officials, as well as local and foreign business leaders. He intends to stress that economic reforms and the government's ongoing privatisation programme are bold steps in the right direction, but that the ultimate success of these measures will hinge on how they are implemented.
This will be Mr Lemierre's first official visit to Armenia since taking office in July 2000. The trip is designed to reaffirm the EBRD's position as a major supporter of reforms, private sector development and regional cooperation in Armenia. The EBRD has current commitments of €132.1 million in Armenia involving six projects.
Among the EBRD's most recent investments in Armenia are a credit line to a commercial bank, Armeconombank; a loan to Yerevan Brandy Company (owned by Pernod-Ricard of France); and a Trade Facilitation Programme with a local commercial bank, Armimpexbank. Total business undertaken in 2000 was €44 million.
The EBRD is also committed to purchasing up to 19.9 per cent of the capital in each of four regional Armenian electricity companies when the government sells its stake to strategic investors. During his visit, Mr Lemierre will sign an agreement to extend the period of this agreement for purchasing equity, allowing the EBRD to remain involved so that it can contribute to transparency and efficiency of the privatisation process.
The Armenian economy showed good progress in 2000, and the clear expectation is that the investment climate will continue to improve. The launching of large-scale privatisation of public utilities and industrial companies will be particularly important to future prospects and the attraction of foreign direct investment.
Meetings are also planned with Finance and Economy Minister Vardan Khachatryan, Justice Minister David Harutunyan and Chairman of the Central Bank Tigran Sargsyan. During his talks, Mr Lemierre plans to convey that the EBRD attaches high priority to government-sponsored initiatives to enhance the credibility of the legal system and regulatory framework because this is fundamental to doing business in Armenia. He will also voice support for the government's promise to dismantle administrative barriers to investment and simplify tax and customs procedures.
Mr Lemierre's visit to Armenia is the first stop during a weeklong trip that will also include visits to Azerbaijan and Georgia.
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