“168 hours”: “What grade would you give for the present day economy of Armenia? In your opinion, what are the major issues?”
Khachatur Sukiasyan: “Our number one issue deals with integration of
economy, both in the region and abroad. When we analyze the reality of
the Armenian market, it is clear that Armenia is not a market for other
countries, but rather we are a market for others. Armenia got the right
to export products to other countries as soon as it became a member of
the International Trade Organization. So, our priority is to occupy our
products in foreign markets. In order to do that, we need to continue
making reforms, fill in the blanks for circulation of resources in
Armenia, import of modern technologies, and application of production
standards in Armenia. These issues are connected to one another.
However, the most important is collaboration with neighboring countries
and production or fields of production. If Armenia keeps close ties
with the economy of other countries, then if one country sees a rise in
economy that will surely affect the economy of Armenia. This will be
circulated.”
“168 hours”: “How do you picture the regional integration when just
recently there were problems with the roads, especially with the Higher
Lars?”
Khachatur Sukiasyan: “We started to analyze the Higher Lars issue when
the vehicles had moved in that direction and could not pass the border.
Now everything has changed. If people importing cargo know beforehand
about what’s going on at the Higher Lars, then they will start the
shipping through other roads where there are much more cargo being
exchanged than at Higher Lars. I think that this will make way for a
new type of doing business for many businesses; for example, the
insertion of vehicles. If Lars is closed, those vehicles bringing the
cargo to Armenia can bring it by ship which costs the same or even
cheaper. However, I would like to bring up a question: Over the past
3-5 years, which loop in government has thought about making a change
in the exportation of products, even if it concerns the border of
Armenia? Even if the unit price of export goes down 2-3 cents, then
perhaps we will have higher income in foreign markets. If we compare
the import and export of Armenia, we will take notice of the fact that
the means of transportation making their way in Armenia leave
empty-handed or don’t go back at all. If the vehicles did not go, then
they would be accumulated and that would be clearly seen. I just want
an analysis of the whole thing-something that doesn’t exist.”
“168 hours”: “You said that there is a lack in means of circulation. Do you really think there is a need for money in Armenia?”
Khachatur Sukiasyan: “There are very few organizations in the world who
do not feel the need for circulation of finances. There are always new
projects coming up and new investments are always made. Yes, I think
that Armenia also has a lack of money circulation. Otherwise,
everything would go at a faster pace.”
“168 hours”: “What do you think about the bank-economic relation,
especially if we take into consideration the fact that the percentages
of loans are still high and that many businesses are not able to use
them?”
Khachatur Sukiasyan: “The bank is itself something which serves and it
lives on providing loans. The bank can not finance the project proposed
by an private sector. In many cases, it either does not finance or
partially finances so that it can insure itself. As for the high level
of percentages, I think that any business in Armenia can receive an 80%
income and can function by receiving a 16-18% loan from the bank. Of
course, it would be nice if the loan percentages were lower by 5%. In
order to fill in the means of circulation, besides loans, today the
Trade facility method is being applied. This represents half of the
loan, meaning that you take the same amount of money but pay less.”
“168 hours”: “Large business in Armenia is diversified. This means that
all large businessmen have businesses in different fields of economy.
Why is it like that and doesn’t that hurt small and average businesses?”
Khachatur Sukiasyan: “One of the founders of diversified business is
“Sil Concern”. I am the one who based institutional significance to
that business. Armenia is a small country and diversification helps
keep your business stay on its feet in any crisis. Your business does
not go down immediately. Only one businessman can go down in a
diversified business among others. This is a means of defense against
the unpredictable market. The diversified business justifies itself in
Armenia. As for the small and average businesses, in any country, any
large business may live on average business in case of need, the
average may live on the large one because each one of them is a client
for the other. Small businesses is always dependent on the large
business.”
“168 hours”: “In your opinion, does Armenia’s economy attract foreign investors as of today?”
Khachatur Sukiasyan: “When foreign professional investors look at
Armenia from the outside, it is very attracting to them because they
have not gone deep into the internal issues. Almost all laws are close
to international laws. This means that the formal investment methods
attract investors. There are organizations who have the strength to
invest with a formal method and enter the legality of the whole thing.”
“168 hours”: “So, you have to be strong in order to work in that field?”
Khachatur Sukiasyan: “No, I don’t think so. Let’s take for example a
store that pays taxes. If it works with the formal method, establish
relations and remains flexible, there can be no problem.”
“168 hours”: “How do you look at business/authority relations? How much is business connected with authorities?”
Khachatur Sukiasyan: “We must not have those types of relations. The
thing is that the state must fulfill all its obligations. There have to
be formal methods. Whatever exists outside the formalities is
considered corruption. Corruption is the one thing that plays a
negative role in Armenia. As for being dependent on the authorities, I
think that it has to do with logic. Being dependent is not all about
dependence. If you have your place in the market, then nobody can mess
with you-if, of course, they don’t use force. We have what we have.
There are half-monopolizations and incredible cases. They have been
like that for a long time and I don’t think that will ever change.”
“168 hours”: “Why do businessmen get involved in politics? Perhaps that is a way to protect themselves from the authorities?”
Khachatur Sukiasyan: “As of today, we don’t have that problem. First of
all, we must define what we mean when we say politics. Do we mean
strictly the National Assembly or just being involved in politics? What
percentage of National Assembly deputies actually have something to do
with politics? There is a bad side to this question. It seems as if
being a part of the National Assembly has turned into a fashion. But I
think that this will disappear after one or two elections. Business
will carry out its actions through the use of institutional
structures.”