The problem

The plan of the RA government is to ensure an annual growth of the gross factor productivity. In order to achieve this goal, a number of measures are implemented, including the subsidy of the targeted loans/leasing rate. Despite the effectiveness of the existing programs, they are not sufficient to achieve the intended result.

In addition to production equipment and techniques, personnel with modern knowledge and experience in various fields are an important prerequisite for increasing productivity, whose labor force is often expensive and not available for local businessmen.

In addition, the volume of scientific research works in Armenia is very small, which restrains the creation of innovative ideas and the organization of knowledge-based productions within the country.

The problems of competitiveness caused by the devaluation of the dram have been added to the existing problems, which are manifested in the form of insufficient working capital.

The assistance program

Taking into account the above issues and the government's intended productivity target, it is proposed to establish measures that will address both current liquidity and productivity enhancement issues.

In particular, it is proposed to make changes and additions to the government's decision "On approving the measure of modernization of the economy", which will define the following.

· Subsidize interest on loans (up to a certain amount) for replenishment of working capital,

· Reimbursing the costs of setting up laboratories meeting international quality standards by 30% - 50%, depending on the range of users.

·To compensate the salary costs of highly qualified specialists in the amount of 1,000,000 - 2,000,000 AMD, depending on the qualification level of the employee.

SME Development 11th Sub-Council Meeting