Republican Party of Armenia

Prime Minister Karen Karapetyan received a delegation led by IMF Armenia mission head Hossein Samiei. The Prime Minister and the Head of the IMF mission reviewed the findings of the final examination of the 2014-2017 program of Armenia-IMF cooperation, touching upon Armenia’s macroeconomic indicators and the trends of economic development, as well as discussing business environment improvement, foreign direct investment, fiscal and monetary policy-related issues.

Hossein Samiei said to have received positive indications about Karen Karapetyan’s government, including specifically the changes made to the tax and customs spheres in terms of reducing the shadow and improving fiscal administration. The Head of the IMF mission said that a more effective fight against the black economy implies continued efforts toward expanding the tax network.

“We attach importance to attracting foreign direct investment, and we are pleased that such measures are already being implemented by your government. We met with the representatives of the Center for Strategic Initiatives and were pleased to see that active steps are being taken to improve the business environment and attract new investment,” Hussein Samiei said.

The Prime Minister stressed the importance of cooperation with the IMF, expressed appreciation for the assistance provided so far and refereed to the Government’s future programs. Karen Karapetyan noted that a second round is due in the field of customs and tax reforms, and that the Government will be consistent in this matter.

“Besides the fact that we have had a quantitative increase in our own revenue, we can see a qualitative change: the shadow is being brought into the field of taxation. We have given up the practice of prepayment. Moreover, those entities that had long-standing advance payments are gradually depleting it. A number of VAT-return-related decisions have been adopted to reduce the return period, etc. We will strive to broaden the taxation field and introduce the principle of fair play in the SRC system. We are firmly determined and confident that we will achieve our goal,” the Premier said.

Noting that the Government pays special attention to attracting foreign investments, Karen Karapetyan pointed out that necessary steps are being taken to that effect. He said that the Government is consistent in ensuring the 2017 State budget performance and the maintenance of predetermined performance indicators. Evoking his government’s drive for stepping up tax receipts and, accordingly, capital expenditures by 50 billion drams in 2017, the Prime Minister said he understands the critical task set before the SRC, adding that the decision was well calculated.

“Well aware of today’s situation, we are prepared to implement reforms in all areas, as we have a deficit of performance. We are going to develop a five-year development program for Armenia, in which we intend to set out ambitious landmarks,” the Head of Government emphasized.

Hossein Samiei welcomed the Government’s reform commitment and stressed that the IMF stands ready to provide necessary assistance for their implementation.