Hraparak: Brandy businesses facing crisis in Armenia

11:06 * 31.01.15

Brandy manufacturing companies, whose number crosses 30 in Armenia,
are said to be facing economic hardships due the market instabilities
and the currency decline.

According to the paper, the crisis has not left the brandy businesses
owned by businessman politician Gagik Tsarukyan and Prime Minister
Hovik Abrahamyan unaffected. The layoffs aside, most employees in
those companies are reported to be in a state of idleness.

The paper says that only two brandy companies – MAP and the Proshyan –
presently carry out exports but they too are said to be unable to
reeceive any money from Russian ventures. The paper claims that the
brandy manufactures agreed in their contracts with Russian companies
to carry out transactions in Rouble, but later borrowed loans in US
Dollars from Armenian banks.

Businessmen now propose that the Government reformulate the loans in
the Armenian Drams. Premier Hovik Abrahamyan, who cannot decide on
such a measure himself, reportedly refers them to President Serzh
Sargsyan, expecting the latter to issue a corresponding instruction to
banks. As for the businessmen, the paper says they expect their
negotiations with the president to result in granting them a “loan
holiday” to enable them to have the necessary money to pay in at least
a year. “But that’s impossible too. Many banks have finished the year
with a negative balance, as it is, let alone the $39 billion worth
fundamental capital,” the paper quotes bankers as saying.

From: Emil Lazarian | Ararat NewsPress