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On June 20, the NA Standing Committee on Economic Affairs organized a working debate on the theme on Mining Problems. Deputies, members of the Government, representatives of the NGO member companies of the Union of Miners and Metallurgists of Armenia took part there.

As the Deputy Chair of the Committee Babken Tunyan informed, the working debate was initiated, taking into consideration the letter sent by the NGO.

The Chairman of the Union of Miners and Metallurgists of Armenia, the First Deputy of the Director General of Zangezur Copper Molybdenum Combine CJSC Vardan Dzhanyan informed that recently the Government adopted the strategy of the development mining sphere and the action plant stemming from it. Which welcomed their Union. However, having only formal strategy or vision, it is not possible to develop that the most important sphere, the Head of the Union thinks. “Perhaps, it is so noticeable, but the sphere is in crisis. If nothing is done by the Government or the National Assembly, then the crisis will more deepen,” Vardan Dzhanyan and added that the main thing of the crisis reasons is the evaluation of the AMD exchange rate, which leaves grave consequences on all producers and exporters of the sphere. The other reason is the considerable decrease of the investments. According to him, besides Zangezur Copper Molybdenum Combine, the other companies are in deep crisis, and have financial problems. Most of them stand before the danger. In the opinion of the Head of the Union, the legislative and executive bodies don’t take such steps that the sphere becomes attractive for investors. According to him, it is necessary to give tax privileges or in any way have an effect on the AMD exchange rate for the development of the sphere.

The deputies and the representatives of the Government touched upon the raised problems/

The Deputy Chair of the NA Standing Committee on Economic Affairs Babken Tunyan noted that the goals of the Government and the Central Bank (CB) do not differ from the goals of the miners. “Here the problem is to find the right balance, because when we say that the main goal of the CB is to provide the stability of prices, that, eventually, leads to economic normal situation, because if the stability of prices breaks, then we won’t have economic growth. And despite the fact we don’t have any lever, and we don’t want to intervene into the policy of the Central Bank, but those debates are always held synchronously, as the goals are the same,” Babken Tunyan noted, expressing willingness to debate the support mechanisms of the sphere.

“In the legal aspect the NA and the Government have no such functions, such constitutional obligation and right, moreover, the Central Bank too. It is another matter that the CB, being responsible for financial stability and inflation, by the Constitution, can with toolset only in that logic, carry out certain functions, not more. But it is considered not right,” the Chair the NA Standing Committee on Financial-Credit and Budgetary Affairs Gevorg Papoyan clarified. He added that the economy should be adjusted to the market situation. “It cannot be in the state in a way that the price of other goods be defined by competition, and the price of the money will be defined by fixed version,” he said.

The Deputy Minister of the RA Territorial Administration and Infrastructure Hovhannes Harutyunyan informed that the representatives of the Union took part in the discussion of the strategy of the mining sphere and the action plan stemming from it. According to him, the Government outlined in that document the short-term, mid-term and long-term action plan, by which the it should move in the coming 10 years, in order the sphere becomes more predictable. The Deputy Minister also informed that the Government has a number of projects supporting the organizations with conscientious and long-term plans, which operate. “Direct support in the form of money, the Government reportedly said it doesn’t envisage. That support should be directed to the increase of productivity,” Hovhannes Harutyunyan said. He urged Vardan Dzhanyan to review the inner policy of the companies’ management.

The RA Deputy Minister of Economy Narek Teryan did not share the view that the investments decrease.

Summing up the working debate, the Deputy Chair of the Standing Committee on Economic Affairs Babken Tunyan mentioned that the legislative body is always ready to debate the issue of support mechanisms, if there are issues related to the legislation.