12 MAY 98
FM AMEMBASSY YEREVAN
INTERNATIONAL COPYRIGHT, U.S. AND FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 1997. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.
COURTESY: ANDREW HOVHANNISYAN, FCS YEREVAN
--------
CONTENTS
--------
A. SUMMARY
B. STATISTICS
- COMPANY SIZE
- EQUIPMENT AND PROGRAMMING LANGUAGES/TOOLS
- PRODUCT AND IPR PROTECTION
C. INVESTMENT PROSPECTS
D. SOFTWARE FIRMS PROFILES
E. MARKET ACCESS
- ESTABLISHING A BUSINESS
- TYPES OF BUSINESS ORGANIZATION
- FINDING PERSONNEL
- LABOR RATES
- INTERNET CONNECTION
- COPYRIGHT PROTECTION
- TECHNICAL BARRIERS
- TAXES
- GUARANTEES
- EXCHANGE CONTROLS
- IMPORT AND INVESTMENT BARRIERS
- FINANCING
- ADDITIONAL SOURCES
----------
A. SUMMARY
----------
1. ARMENIA, A SMALL LANDLOCKED COUNTRY WITH A POPULATION OF 3 MILLION, OFFERS ATTRACTIVE INVESTMENT OPPORTUNITIES TO SOFTWARE DEVELOPERS. IN ADDITION TO MORE THAN 13 LOCAL SOFTWARE FIRMS, FIVE U.S. FIRMS HAVE ALREADY STARTED SUCCESSFUL SOFTWARE PROJECTS IN YEREVAN, ARMENIA'S CAPITAL, EMPLOYING ARMENIAN PROGRAMMERS AND USING THE BENEFITS OF QUALIFIED AND LOW COST LABOR. A NUMBER OF PROGRAMMERS ALSO WORK FOR U.S. FIRMS ON INDIVIDUAL ORDERS, WORKING AT HOME AND COMMUNICATING WITH HEADQUARTERS IN THE U.S. VIA INTERNET. WHILE LOCAL ARMENIAN COMPANIES PRIMARILY SERVE THE LIMITED INTERNAL MARKET NEEDS, THE AMERICAN FIRMS HAVE OCCUPIED THE EXPORT NICHES, DEVELOPING SOFTWARE FOR INTERNATIONAL MARKETS.
2. THE COUNTRY POSSESSES A SIGNIFICANT NUMBER OF PROGRAMMERS, MOST OF WHOM ARE GRADUATES FROM THE STATE UNIVERSITY OF ARMENIA AND THE ENGINEERING UNIVERSITY. MANY OF THESE PROGRAMMERS WORKED ON DEFENSE PROJECTS IN THE PAST.
3. THE RECENT 10 YEARS OF INSTABILITY IN THE REGION HAVE HAD A NEGATIVE EFFECT ON THE TRANSPORTATION- DEPENDENT AND PRIMARILY EXPORT-ORIENTED ARMENIAN INDUSTRIES BUT HAD MUCH LESS INFLUENCE ON THE LOCAL SOFTWARE MANUFACTURERS. AFTER THE ELECTRICITY SUPPLY SHORTAGES OF 1991-1994, FOLLOWED BY MASS PRIVATIZATION AND THE EMERGENCE OF PRIVATE COMPANIES-END USERS, THE COUNTRY'S SOFTWARE SECTOR IS BACK ON TRACK.
4. LESS DEPENDENT ON THE PERVASIVE PROBLEM AREAS OF COUNTRIES IN TRANSITION - HIGH INCIDENCE OF CORRUPTION, MULTI-LAYER BUREAUCRACY, AND POOR INFRASTRUCTURE IN TRANSPORTATION AND CUSTOMS - AND NOT REQUIRING HEAVY CAPITAL INVESTMENT, THE SOFTWARE DEVELOPMENT SECTOR REPRESENTS A FAVORABLE NICHE FOR FOREIGN INVESTMENT.
5. IN JANUARY-MARCH 1998, U.S. AND FOREIGN COMMERCIAL SERVICE YEREVAN (FCS) CONDUCTED A SURVEY OF ALL ARMENIAN SOFTWARE MANUFACTURERS (THIS DID NOT INCLUDE U.S.-OWNED COMPANIES OR JOINT VENTURES). THE COMPANIES WERE ASKED TO RESPOND TO STANDARD QUESTIONNAIRES AND PROVIDE COMPANY AND PRODUCT DATA, AS WELL AS PREFERRED TYPE OF COOPERATION WITH U.S. SOFTWARE FIRMS. THESE DATA HAS BEEN COMPILED AND ANALYZED TO DETERMINE MARKET TRENDS AND INVESTMENT POTENTIAL.
-------------
B. STATISTICS
-------------
COMPANY SIZE
------------
6. THE INDUSTRY CURRENTLY EMPLOYS OVER 300 PROGRAMMERS, OF WHICH OVER 65 ARE EMPLOYED BY HPL ARMENIA, A SUBSIDIARY OF THE SILICON VALLEY-BASED HEURISTICS PHYSICS LABS, INC. HPL ARMENIA HAS BECOME THE LARGEST SOFTWARE FIRM IN YEREVAN. THE SPREAD OF PROGRAMMERS BY COMPANY (LOCAL OWNED) LOOKS AS FOLLOWS:
TOTAL PERMANENT STAFF: 133
COMPANY NAME NUMBER OF PROGRAMMERS
PERMANENT STAFF SHORT-TERM
1-5 6-10 OVER 10 CONTRACT
ALGORITM-SERVICE 4 2
ARMENIAN SOFTWARE 21
ARMENIX 8 2
ASRICTI 7
CEDIT L.L.C. 8 2
GEOCOM CO. LTD. 4 4
HENK 6 8
INFORMATICS 20 20
INFOSERVICE CO. LTD. 6
LANS LTD. 15
LSOFT LTD. 10
MIGMA LTD. 9 3
SEARCH 15 10
TOTAL: 8 54 71 51
TOTAL SHORT-TERM CONTRACTORS: 51
LEADERS (PERMANENT/SHORT-TERM CONTRACT STAFF)
INFORMATICS (20/20)
ARMENIAN SOFTWARE (21/0)
SEARCH (15/10)
7. SHORT-TERM CONTRACTORS OFTEN COME WITH THEIR OWN PCS. THEY ALSO OFTEN WORK FOR DIFFERENT COMPANIES. EXPERIENCED PROGRAMMERS ARE NOT EASY TO FIND OUT OF THIS CIRCLE: MOST OF THE FRESHMEN DO NOT MASTER MODERN PROGRAMMING LANGUAGES. COMPANIES SUCCESSFULLY OVERCOME THIS PROBLEM BY ALLOWING TIME FOR ON-THE-JOB TRAINING. ALSO, MANAGERS OF SOME COMPANIES OFTEN SUPERVISE STUDENTS-PROGRAMMERS DURING THEIR PREPARATION OF UNIVERSITY GRADUATION PROJECTS (SOFTWARE). THIS WAY, STUDENTS GET ACCESS TO THE COMPANY COMPUTERS, STUDY PROGRAMMING LANGUAGES, DO SOME PROGRAMMING OUTSIDE OF THEIR STUDENT WORK, AND OFTEN END UP WORKING FOR THE HOST COMPANY.
EQUIPMENT AND PROGRAMMING LANGUAGES/TOOLS
-----------------------------------------
8. THE TOTAL NUMBER OF PCS USED BY THE ARMENIAN SOFTWARE MANUFACTURERS EXCEEDS 239. UPGRADING OF THE PC INVENTORY PROCEEDS SLOWLY, AS MANY OF THE FIRMS CANNOT AFFORD TIMELY REPLACEMENT OF OUTDATED EQUIPMENT. BY FEBRUARY 1998, PCS WITH PENTIUM PROCESSORS CONSTITUTED ABOUT 40 PERCENT OF THE TOTAL PCS IN USE.
9. ACCORDING TO THE COMPANIES, "C++", VISUAL C, AND DELPHI ARE THE MOST WIDELY USED PROGRAMMING LANGUAGES/TOOLS. ANSWERING TO THE GROWING DEMAND IN PROGRAMMERS SPECIALIZED IN "C++", MAMN ARMENIAN PROGRAMMERS WHO ARE SPECIALIZED IN OTHER LANGUAGES BELIEVE FAST LEARNING OF "C++" DOES NOT CONSTITUTE A PROBLEM FOR AN EXPERIENCED PROGRAMMER. THE FOLLOWING CHART SHOWS, BY COMPANY, THE TYPES OF PC EQUIPMENT AND PROGRAMMING INSTRUMENTS IN ACTIVE USE:
10. GLOSSARY OF PROGRAMMING LANGUAGES AND TOOLS:
COMPANY NAME PCS IN USE ACTIVE
PROGRAM.
486 AND PENTIUM LANGUAGES,
LOWER AND TOOLS
ALGORITM-SERVICE 6 8 EG
ARMENIAN SOFTWARE CO. 8 6 FMC
ARMENIX 1 3 FLN
ASRICTI 20 0 BFGMC
CEDIT L.L.C. 0 8 FN
GEOCOM CO. LTD. 3 2 PFGI
HENK 2 0 AL
INFORMATICS 60 20 FHL
INFOSERVICE CO. LTD. 17 0 BGM
LANS LTD. 0 20 ADHIOST
LSOFT LTD. 4 6 FHS
MIGMA LTD. 0 11 PFGI
SEARCH 21 13 FINT
TOTAL: 142 97
(A)ACCESS, (B)ASSEMBLER, (C)BASIC VISUAL, (D)BETRIEVE, (E)C,
(F)C++, (G)C VISUAL, (H)CLIPPER, (I)DELPHY, (K) FORTRAN,
(L)FOXPRO, (M)FOXPRO VISUAL, (N)JAVA, (O)ORACLE, (P)PASCAL,
(R)PERL, (S)POWER BLD, (T)SQL.
PRODUCTS AND IPR PROTECTION
---------------------------
11. IN 1989-1997, LOCAL SOFTWARE MANUFACTURERS DEVELOPED OVER 70 SOFTWARE APPLICATIONS. MOST OF THE PACKAGES (OVER 70 PCT) WERE MADE ON CUSTOM ORDERS FROM VARIOUS ARMENIAN ORGANIZATIONS, WERE TAILORED TO THEIR NEEDS ONLY AND NOT INTENDED FOR GENERAL SALES. THE SOFTWARE DEVELOPERS ARE, AS A RULE, SPECIALIZED AND RARELY COMPETE. AN EXCEPTION IS FINANCIAL SOFTWARE, WHERE TWO COMPANIES, ARMENIAN SOFTWARE CO. AND LSOFT, ARE CONSIDERED LEADERS. ARMENIAN SOFTWARE CO., BESIDES HAVING GOOD PROGRAMMERS, WAS ABLE TO ATTRACT U.S. AND EUROPEAN EXPERTS TO ASSIST ITS PROJECTS. AS A RESULT, THE COMPANY HAS DEVELOPED SOME OF THE BEST LOCALLY-MADE ACCOUNTING PACKAGES. THE COMPANY CLIENTS IN ARMENIA INCLUDE: PRICE WATERHOUSE, AMYOT EXCO, COCA-COLA BOTTLERS ARMENIA, 3P ARMENIA JOINT VENTURE, ARMENTEL JSC, ARMENIAN-AMERICAN EXPLORATION COMPANY, CASTEL GROUP, AND YEREVAN AGENCY OF PHILIP MORRIS COMPANY. THE COMPANY RECENTLY WON A COMPETITION TO INSTALL ACCOUNTING SOFTWARE IN MANY ENERGY SECTOR ENTERPRISES IN ARMENIA. ANOTHER COMPANY, "SEARCH" HAS BECOME EXPERIENCED IN MULTILINGUAL WORD PROCESSING AND INTERNET APPLICATIONS, SERVING GOVERNMENT AND PRIVATE SECTOR NEEDS.
GENERAL MARKET/PRODUCT ORIENTATION IS AS FOLLOWS:
COMPANY SOFTWARE TARGET MARKET
ALGORITM-SERVICE EDUCATIONAL
ARMENIAN SOFTWARE CO. FINANCIAL
ARMENIX GAMES, EDUCATIONAL
ASRICTI INDUSTRIAL
CEDIT L.L.C. FINANCIAL
GEOCOM CO. LTD. INDUSTRIAL, SCIENTIFIC
HENK OFFICE, INDUSTRIAL
INFORMATICS DATABASES
INFOSERVICE CO. LTD. MANAGEMENT, FINANCIAL
LANS LTD. MANAGEMENT
LSOFT LTD. FINANCIAL
MIGMA LTD. SYSTEM PROTECTION
SEARCH INTERNET DATABASES
12. THE NUMBER OF SOFTWARE PRODUCTS, BY COMPANY, VARIES SIGNIFICANTLY, FROM 2 TO 13. THE LARGE NUMBERS ARE FEW (AS SEEN FROM THE CHART BELOW) AND DO NOT NECESSARILY INDICATE THE PRESENCE OF A LOCAL MARKET NICHE: ALGORITM-SERVICE, FOR EXAMPLE PRODUCES SIMILAR TYPE PROGRAMS FOR EXPORT PURPOSES, WHILE MANY OF THE PROGRAMS DEVELOPED BY THE "SEARCH", THOUGH APPEARING ATTRACTIVE IN THEMSELVES, WHERE INITIATED BY THE COMPANY ITSELF, AND DO NOT SELL WELL.
13. THE COMPANIES RARELY USE COPYRIGHT PROTECTION DUE TO SEVERAL
REASONS:
- THE COPYRIGHT LEGISLATION HAS BEEN ADOPTED ONLY RECENTLY AND
IT LACKS PROPER ENFORCEMENT MECHANISMS;
- MOST OF THE SOFTWARE PRODUCTS WERE DESIGNED FOR SPECIFIC
END-USERS, WERE NOT INTENDED FOR GENERAL SALE, AND THUS DID NOT
REPRESENT A COMMERCIAL INTEREST.
THE FOLLOWING IS PRODUCTIVITY CHART, BY COMPANY:
PRODUCT USE OF
COPYRIGHT
PACKAGED CUSTOM PROTECTED
APPLIC. APPLIC. Y/N
ALGORITM-SERVICE 13 Y
ARMENIAN SOFTWARE CO. 2 N
ARMENIX 4 N
ASRICTI 3 1 N
CEDIT L.L.C. 1 4 N
GEOCOM CO. LTD. 5 Y
HENK 1 8 N
INFORMATICS 3 N
INFOSERVICE CO. LTD. 2 N
LANS LTD. 3 1 N
LSOFT LTD. 3 N
MIGMA LTD. 4 N
SEARCH 12 Y
TOTAL: 46 24
-----------------------
C. INVESTMENT PROSPECTS
-----------------------
14. THE HIGH SKILL LEVEL OF ARMENIAN PROGRAMMERS AND THE LOW COST OF RESEARCH AND DEVELOPMENT IN ARMENIA ARE THE MAIN DRIVING FACTORS FOR U.S. SOFTWARE DEVELOPERS, REGARDLESS OF TYPE OF SOFTWARE PRODUCT THEY MAY WISH TO DEVELOP OR THE DESTINATION MARKET. EXISTING EXAMPLES INCLUDE SUCH AREAS AS CHIP TESTING, ACCOUNTING, TELECOMMUNICATIONS, INTERNET APPLICATIONS, AND STOCK MARKET DATA PROCESSING.
15. WHILE SETTING UP A FULLY-OWNED SUBSIDIARY MAY BE A VIABLE OPTION, THE SURVEY ALSO REVEALED ALSO WILLINGNESS OF LOCAL FIRMS TO ENGAGE IN VARIOUS PARTNERSHIP STRUCTURES WITH U.S. FIRMS. SO, SEVENTY- SEVEN PCT OF THE COMPANIES INDICATED THAT THEY WOULD LIKE TO GET ORDERS FROM THE U.S.; 62 PCT WOULD LIKE TO JOINTLY DEVELOP PRODUCTS FOR THE LOCAL MARKET; 3 PCT WOULD LIKE TO REPRESENT U.S. SOFTWARE PRODUCERS, SELL AND ADAPT THEIR PRODUCTS IN ARMENIA; AND 38 PCT WOULD LIKE A U.S. FIRM TO HELP IN MARKETING THEIR PRODUCT IN THE UNITED STATES.
PROPOSED COOPERATION WITH U.S. FIRMS
ORDERS JOINT TO U.S. FIRM
FROM DEVT REPRES TO MARKET
U.S. FOR U.S. ARMENIAN
FIRMS LOCAL PRODUCT SOFTWARE
MARKET IN ARM PRODUCT
ALGORITM-SERVICE X X
ARMENIAN SOFTWARE X
ARMENIX X X
ASRICTI X X
CEDIT L.L.C. X X
GEOCOM CO. LTD. X X X
HENK X X
INFORMATICS X X
INFOSERVICE CO.
LANS LTD. X X X
LSOFT LTD. X
MIGMA LTD. X X X X
SEARCH X X
--------------------------
D. SOFTWARE FIRMS PROFILES
--------------------------
16. NAME: ALGORITHM-SERVICE LTD.
ADDRESS: 2 AVETISIAN STR., YEREVAN-33, ARMENIA
PHONE: (3742) 275-880, 228-191
FAX: (3742) 228-191
E-MAIL: AVA@AVA.ARMINCO.COM
CONTACT: VLADIMIR HAKOBYAN, PRESIDENT (SPEAKS ENGLISH)
YEAR ESTABLISHED: 1991
TYPE OF OWNERSHIP: PRIVATE
OFFICE AREA: 144 SQ.M., OWN
NUMBER OF EMPLOYEES: 14
PROGRAMMERS IN PERMANENT STAFF: 4
PROGRAMMERS ON SHORT-TERM CONTRACTS: 2
SOFTWARE PRODUCTS:
- TEACHPRO EXCEL
- TEACHPRO WORD
- TEACHPRO WINDOWS
- TEACHPRO INTERNET
- ENGLISH COURSE FOR BEGINNERS
- ENGLISH COURSE FOR ADVANCED STUDENTS
- FRENCH COURSE
- SPANISH COURSE
- GERMAN COURSE
- ITALIAN COURSE
- MULTILINGUAL DICTIONARY FOR CHILDREN
- ARMENIAN LANGUAGE COURSE FOR ENGLISH SPEAKERS
- ARMENIAN LANGUAGE COURSE FOR FRENCH SPEAKERS
17. NAME: ARMENIAN SOFTWARE CO., LTD.
ADDRESS: I CHARENTS ST., FLOOR 10, YEREVAN, ARMENIA
PHONE: (374-2) 574-795, 574-708, 575-295
E-MAIL: ARMSOFT@ARMINCO.COM
WEB SITE: HTTP://WWW.ARMINCO.COM/ARMSOFT/
CONTACT: QASHOT KHACHATRYAN, PRESIDENT
YEAR ESTABLISHED: 1987
TYPE OF OWNERSHIP: PRIVATE
OFFICE AREA: 200 SQ.M.
NUMBER OF EMPLOYEES: 25
PROGRAMMERS IN PERMANENT STAFF: 21
SOFTWARE PRODUCTS:
- AS-ACCOUNTING 2.7. INTERNATIONAL STANDARD ACCOUNTING PACKAGE
FOR MEDIUM SIZE MANUFACTURING AND TRADE BUSINESSES.
- AS-BANK 1.5. ACCOUNTING SYSTEM FOR SMALL AND MEDIUM SIZE
COMMERCIAL BANKS. APPROXIMATELY 50 PERCENT OF THE ARMENIAN BANKS
ARE USING THIS PACKAGE.
18. NAME: ARMENIX
ADDRESS: 37, 1ST BY WAY CHARENTS ST., YEREVAN, ARMENIA
PHONE: (374-2) 574-893, 553-832
FAX: (374 2) 520-667
E-MAIL: KEST@ARMINCO.COM
WEB SITE: PLANING TO ESTABLISH IN 1998.
CONTACT: STEPAN KEROPYAN, CHAIRMAN, SPEAKS ENGLISH.
NUNE GHUKASYAN, SPEAKS ENGLISH.
YEAR ESTABLISHED: 1997
TYPE OF OWNERSHIP: PRIVATE
OFFICE AREA: 70 SQ.M.- OWN; 25 SQ.M - LEASED
NUMBER OF EMPLOYEES: 8
PROGRAMMERS IN PERMANENT STAFF: 3
PROGRAMMERS ON SHORT-TERM CONTRACTS: 2
SOFTWARE PRODUCTS:
- DOMINO (GAME, FOR WINDOWS)
- LINES (GAME, FOR WINDOWS)
- MINAS AVETISYAN ART COLLECTION ENCYCLOPEDIA
- ARMENIX ARMENIAN ART COLLECTION (CD)
- THE ARMENIAN QUESTION ENCYCLOPEDIA
19. NAME: ARMENIAN SCIENTIFIC-RESEARCH INSTITUTE OF COMPUTING
TECHNICS AND INFORMATICS (ASRICTI)
ADDRESS: 6/1 ABELIAN ST., YEREVAN-38, ARMENIA PHONE: (374-2)
350-131, 350-141
FAX: (374-2) 350-141
E-MAIL: HAMLET@CITSEV.YERPHI.AM
CONTACT: DR. HAMLET HARUTYUNYAN, DIRECTOR, SPEAKS
ENGLISH
YEAR ESTABLISHED: 1976
TYPE OF OWNERSHIP: STATE JOINT-STOCK COMPANY
OFFICE AREA: 17,000 SQ.M.
NUMBER OF EMPLOYEES: 200
PROGRAMMERS IN PERMANENT STAFF: SEVEN. IN CASE OF NEED THE NUMBER
OF PROGRAMMERS CAN BE INCREASED UP TO 50-60 SOFTWARE
PRODUCTS:
- MUNICIPALITY OFFICE AUTOMATION SOFTWARE
- ELECTRICITY METERING AND STOCK-TAKING AUTOMATION SFTW
- ACCOUNTING SOFTWARE
- "SPC 3D" MATERIAL DEFECT DETECTION AND Q-TY CONTROL
20. NAME: CENTER FOR ECONOMIC DEVELOPMENT, INNOVATION AND
TECHNOLOGY (CEDIT L.L.C.)
ADDRESS: 5 HANRAPETUTIAN, BLDG B, FLOOR 4, YEREVAN-10,
ARMENIA
PHONE: (374-2) 529-432
FAX: (374-2) 151-548
E-MAIL: HAVOYAN@WWW.CEDIT.AMILINK.NET
WEB SITE: WWW.CEDIT.AMILINK.NET
CONTACT: HOVHANNES AVOYAN, CEO, SPEAKS ENGLISH
YEAR ESTABLISHED: 1996
TYPE OF OWNERSHIP: PRIVATE
OFFICE AREA: 50 SQ.M.
NUMBER OF EMPLOYEES: 10
PROGRAMMERS IN PERMANENT STAFF: 8
PROGRAMMERS ON SHORT-TERM CONTRACTS : 2
SOFTWARE PRODUCTS:
- JAVAPRO, A TOOL FOR FINANCIAL SOFTWARE DEVELOPERS
- AUTOMATED FINANCIAL TRADING SYSTEM
- SYSTEM FOR TRADING, SETTLEMENT, AND ANALYSIS OF
CURRENCY, BONDS, OTHER SECURITY AND FUTURES TRADED IN THE YEREVAN
STOCK EXCHANGE
- "SEDGAP", A WIDE AREA NETWORK FOR REMOTE MONITORING OF
TRANSACTIONS AT THE YEREVAN STOCK EXCHANGE (FOR USE BY MEMBERS OF
THE STOCK EXCHANGE, INCLUDING MAJOR BANKS)
- TRAINING AND CERTIFICATION SOFTWARE FOR THE MINISTRY OF
FINANCE
- NATIONAL SECURITIES REGISTRAR AUTOMATION SOFTWARE
- VARIOUS BUSINESS DATA BASES AND APPLICATIONS
21. NAME: GEOCOM LTD.CO.
ADDRESS: 24 A BAGRAMIAN ST., YEREVAN, ARMENIA
PHONE: (374-2)524-426, 564-504
FAX: (374-2)279-522
E-MAIL: GEOINFO@PNAS.SCI.AM
CONTACT: ARSHAVIR AVAGIAN, DIRECTOR, SPEAKS ENGLISH
YEAR ESTABLISHED: 1992
TYPE OF OWNERSHIP: PRIVATE
OFFICE AREA: 100 SQ.M. - LEASED FOR 10 YEARS
NUMBER OF EMPLOYEES: 15
PROGRAMMERS IN PERMANENT STAFF: 3
PROGRAMMERS ON SHORT-TERM CONTRACTS: 4
SOFTWARE PRODUCTS:
- "MINRES" ARMENIAN MINERAL RESOURCES DATABASE AND DEPOSIT
CERTIFICATION SOFTWARE FOR THE MINISTRY OF ECONOMY (WINDOWS
APPLICATION)
- "MAP PLUS" ARMENIAN MAPS DATABASE AND MAP DESIGN STUDIO
(WINDOWS APPLICATION)
- "GEOMAP" MAP PROCESSING SOFTWARE (ENGINEERING- GEOLOGICAL,
HYDRO-GEOLOGICAL, GEO-MORPHOLOGICAL, GEOCHEMICAL, SEISMIC - ALL
FOR YEREVAN) FOR THE MINISTRY OF SCIENCE
- "MINRES" INTERNET NAVIGATOR OF ARMENIAN MINERAL RESOURCES WITH
DATABASE ELEMENTS FOR "EURASIA" FOUNDATION
- "WELLOG" DATABASE OF ENGINEERING WELLS LOCATED IN YEREVAN AREA
FOR THE MINISTRY OF ECONOMY (DOS APPLICATION)
22. NAME: "HENK" DESIGN-METHODICAL CENTER OF THE MINISTRY OF
URBAN DEVELOPMENT OF ARMENIA
ADDRESS: GOVERNMENT HOUSE 3, YEREVAN-10, ARMENIA
PHONE: (374-2) 560-052
FAX: (374-2) 523-200
CONTACT: RUDOLF KHANAMIRYAN, DIRECTOR, SPEAKS ENGLISH
YEAR ESTABLISHED : 1991
TYPE OF OWNERSHIP: STATE
OFFICE AREA OF THE OFFICE: 30 SQ.M. STATE-OWNED
NUMBER OF EMPLOYEES: 14
PROGRAMMERS IN PERMANENT STAFF: 6
PROGRAMMERS ON SHORT-TERM CONTRACTS: 8
SOFTWARE PRODUCTS:
- DOCUMENTS DATA BANK FOR THE MINISTRY OF URBAN DEVELOPMENT
- DATA BANK OF ARCHITECTURAL MASTER PLANS FOR THE MINISTRY OF
URBAN DEVELOPMENT
- SOFTWARE FOR PROCESSING OF DRIVERS TRAVEL FORMS FOR THE
MINISTRY OF TRANSPORTATION
- AGRICULTURAL TERMINOLOGY DATA BANK FOR THE MINISTRY OF
AGRICULTURE
- INVENTORY PROCESSING SOFTWARE FOR USE IN STORES OR
WAREHOUSES
- POSTAL ORDERS ACCOUNTING AND PROCESSING PACKAGE FOR THE
ARMENIAN GENERAL POST OFFICE AND ITS BRANCHES
- INTERNET USAGE CONTROL AND PRICING PACKAGE FOR THE GENERAL POST
OFFICE OF ARMENIA
- BANKING PACKAGES FOR THE CENTRAL BANK OF ARMENIA
23. NAME: "INFORMATICS" EDUCATIONAL SCIENTIFIC AND INDUSTRIAL
ASSOCIATION
ADDRESS: 52 MAMIKONYANTS ST., YEREVAN, ARMENIA
PHONE: (374-2) 238-048, 232-908
FAX : (374-2) 23-80-48
E-MAIL: INFOAC@MBOX.AMILINK.NET
CONTACT: YURI BAROYAN, DIRECTOR
GEVORG MARKAROV, SPEAKS ENGLISH.
YEAR ESTABLISHED: 1987
TYPE OF OWNERSHIP: STATE COMPANY
OFFICE AREA: 2,000 SQ.M.
NUMBER OF EMPLOYEES: OVER 100
PROGRAMMERS IN PERMANENT STAFF: 20
PROGRAMMERS ON SHORT-TERM CONTRACTS: 20
SOFTWARE PRODUCTS:
- CUSTOMIZED DATABASES FOR VARIOUS ARMENIAN ORGANIZATIONS
24. NAME: INFOSERVICE CO. LTD.
ADDRESS: 2 AHARONIAN ST., YEREVAN-14, ARMENIA
PHONE: (374-2) 283-202, 288-961, 281-508
FAX: (374-2) 283-202
E-MAIL: SERJ@INFOSERVICE.AM
DK@INFOSERVICE.AM
VITO@INFOSERVICE.AM
CONTACT: HOVHANNISYAN HOVHANNES, DIRECTOR, DOES NOT SPEAK
ENGLISH
YEAR ESTABLISHED: 1996
TYPE OF OWNERSHIP: MIXED
OFFICE AREA: USED - 230 SQ.M; FREE - 100 SQ.M
NUMBER OF EMPLOYEES:22
PROGRAMMERS IN PERMANENT STAFF: 6
SOFTWARE PRODUCTS:
- MANAGEMENT, ACCOUNTING AND AUTOMATION PACKAGE FOR THE
ARMENIAN
TELEPHONE NETWORK
- MANAGEMENT, ACCOUNTING AND AUTOMATION PACKAGE FOR HRAZDAN
THERMAL POWER PLANT
25. NAME: LANS LTD.
ADDRESS: 49 KOMITAS AVE., YEREVAN-51, ARMENIA
PHONE: (374-2) 230-510, 230-925
FAX: (3742) 282-951
E-MAIL: LANS@LANS.YERPHI.AM
WEB SITE: LANS.YERPHI.AM
CONTACT: ARSHAVIR GOULKHASSIAN, PRESIDENT, SPEAKS ENGLISH
YEAR OF ESTABLISHMENT: 1996
TYPE OF OWNERSHIP: PRIVATE
OFFICE AREA: 400 SQ.M., OWN
NUMBER OF EMPLOYEES: 30
PROGRAMMERS IN PERMANENT STAFF: 15
SOFTWARE PRODUCTS:
- "PRIVATIZATION" NETWORK PACKAGE FOR PROCESSING VARIOUS ASPECTS
OF PRIVATIZATION IN ARMENIA, INCLUDING REGISTRATION OF
PRIVATIZATION FUNDS AND PRIVATIZING ENTERPRISES; PROCESSING OF
OPEN SUBSCRIPTION, AUCTIONS; AND REGISTRATION OF PRIVATIZATION
CERTIFICATES. ORDERED BY THE MINISTRY OF PRIVATIZATION
- "HOTEL" INTEGRATED NETWORK HOTEL MANAGEMENT SYSTEM
- "STORE" SALES MANAGEMENT PACKAGE
- "CIRCULATION OF DOCUMENTS" OFFICE MANAGEMENT PACKAGE
- AIRCRAFT MAINTENANCE AND EXPLOITATION STATUS CONTROLLING
SOFTWARE FOR USE BY AIRLINES
26. NAME: LSOFT LTD
ADDRESS: 24 PAVSTOS BUZAND ST, YEREVAN, ARMENIA
PHONE: (374-2) 564-517
FAX: (374-2)151-441
W-MAIL: EFANEL@ARMINCO.COM
CONTACT: LARISA LALAYAN, PRESIDENT
YEAR ESTABLISHED: 1995
TYPE OF OWNERSHIP: PRIVATE
OFFICE AREA: 120 SQ.M.-OWN; 60 SQ.M.-LEASED
NUMBER OF EMPLOYEES: 12
PROGRAMMERS IN PERMANENT STAFF: 10
SOFTWARE PRODUCTS:
- "LSBANK" LAN BASED BANKING SYSTEM FOR CENTRAL BANK
- "LS MINFIN" LAN BASED DATA BASE FOR THE ARMENIAN TREASURY
- "LS FINANCE" LAN BASED DATABASE FOR ARMENIAN AIRLINES
27. NAME: MIGMA, LTD.
ADDRESS: 15 SAYAT-NOVA ST., YEREVAN, ARMENIA
PHONE:(374-2) 564-849, 565-917
FAX: (374-2) 521-356
E-MAIL: HEAD@MOGMA.INFOCOM.AMIMAIL.NET
INERSISI@AUA.AM
CONTACT: GRIGOR BARSEGHYAN, DIRECTOR, DOES NOT SPEAK ENGLISH
YEAR ESTABLISHED: 1996
TYPE OF OWNERSHIP: PRIVATE
OFFICE AREA: 120 SQ.M.-LEASED FOR THREE YEARS
NUMBER OF EMPLOYEES: 24
PROGRAMMERS IN PERMANENT STAFF: 9
PROGRAMMERS ON SHORT-TERM CONTRACTS: 3
SOFTWARE PRODUCTS:
- GENERAL SYSTEM PROTECTION FOR WINDOWS 95/3X, AND DOS
- MULTIMEDIA PROGRAM ABOUT ARMENIA DEDICATED TO THE 1700TH
ANNIVERSARY OF ADOPTION OF CHRISTIANITY BY ARMENIA
- "3D SHOW" 3D DESIGN STUDIO FOR WINDOWS 95.
- "AB EDIT 3.0" ASCII TEXT EDITOR
28. NAME: ARMENIAN TELECOMMUNICATION CENTER "SEARCH"
ADDRESS: 19A KORYUN ST., YEREVAN, ARMENIA
PHONE: (374-2) 527-886
FAX: (3742) 527-886
E-MAIL: HAYKNET@ARMINCO.COM
WEB SITE: HTTP://WWW.ARMINCO.COM/HAYKNET
CONTACT: GREGOR VAHANIAN, DIRECTOR, DOES NOT SPEAK ENGLISH
YEAR ESTABLISHED: 1989
TYPE OF OWNERSHIP: PRIVATE
OFFICE AREA: 225 SQ.M.
NUMBER OF EMPLOYEES: 25
PROGRAMMERS IN PERMANENT STAFF: 15
PROGRAMMERS ON SHORT-TERM CONTRACTS: 10
SOFTWARE PRODUCTS:
- WORD PROCESSING PACKAGE (ARMENIAN-RUSSIAN-ENGLISH)
- INTERNET DATABASES ON ARMENIA
- TELECOMMUNICATION SOFTWARE
- PERSONNEL ASSESSMENT ADMIN SOFTWARE
- DATA BASES ON ARMENIAN COMPANIES
- SOFTWARE BANK OF ARMENIAN ROCK CARVINGS
- ARMENIAN CHURCHES (GAME)
- ON-LINE MULTILINGUAL ARMENIAN LEGISLATION BANK
- ARMENIAN-RUSSIAN-GERMAN ECONOMIC DICTIONARY.
----------------
E. MARKET ACCESS
----------------
ESTABLISHING A BUSINESS
-----------------------
29. TO BE ABLE TO START BUSINESS, FOREIGN COMPANIES MUST REGISTER WITH THE ARMENIAN STATE REGISTER. ANY ACTIVITY OF NON-REGISTERED BUSINESSES ON THE TERRITORY OF ARMENIA IS PROHIBITED. REGISTRATION MAY TAKE UP TO 45 DAYS FOR ENTERPRISES, AND 25 DAYS FOR INDIVIDUAL ENTREPRENEURS.
TYPES OF BUSINESS ORGANIZATION
------------------------------
30. ARMENIAN LEGISLATION PROVIDES THE SAME LEGAL GUARANTEES AND
PROTECTIONS TO FOREIGN BUSINESSES AS IT DOES TO ITS OWN CITIZENS
AND BUSINESSES. FOREIGN INVESTORS HAVE THE RIGHT TO CREATE JOINT
VENTURES, PARTNERSHIPS, JOINT STOCK COMPANIES, LIMITED LIABILITY
COMPANIES AND OTHER ENTERPRISE FORMS. THE MOST FAVORED TYPES
ARE:
- JOINT STOCK COMPANIES (J.S.C. OR CORPORATIONS, OPEN
OR CLOSED);
- LIMITED LIABILITY COMPANIES (L.L.C.);
- ECONOMIC PARTNERSHIPS (FULL OR LIMITED).
- SUBSIDIARIES
31. THE MINIMUM CAPITAL REQUIREMENT FOR ANY JSC WITH FOREIGN PARTICIPATION IS 1,000 TIMES THE MINIMUM MONTHLY WAGE (THAT TOTALS 1,000,000 DRAMS OR $ 2,000 AT THE CURRENT EXCHANGE RATE). FOR LIMITED LIABILITY COMPANY (LLC) THERE SHOULD BE NO LESS THAN TWO PARTNERS, AND THE INITIAL CAPITAL MUST BE NO LESS THAN 50,000 DRAM OR $ 100 AT THE CURRENT EXCHANGE RATE.
32. U.S. COMPANIES-LEGAL ENTITIES CAN HAVE SUBSIDIARIES IN ARMENIA. THESE SUBSIDIARIES ARE CONSIDERED LEGAL ENTITIES WITH THEIR LIABILITY NOT TRANSFERABLE TO THE PARENT ENTERPRISE. HOWEVER, ALL ASSETS OF THE SUBSIDIARY BELONG TO THE PARENT ENTERPRISE.
33. FOREIGN COMPANIES MAY OPERATE IN ARMENIA WITHOUT ESTABLISHING A NEW ENTITY, I.E. BY REGISTERING IN ARMENIA A REPRESENTATIVE OFFICE OR BRANCH OF A FOREIGN LEGAL ENTITY.
FINDING PERSONNEL
-----------------
34. PROGRAMMERS: A GOOD CADRE CAN BE FOUND IN THE EXISTING ARMENIAN SOFTWARE COMPANIES AND THROUGH ADVERTISING IN THE PRESS. DUE TO LIMITED JOB OPPORTUNITIES, THE NUMBER OF UNEMPLOYED PROGRAMMERS, OR THOSE WORKING FOR NON-RELATED ORGANIZATIONS (OFTEN AS COMPUTER MAINTENANCE SPECIALISTS, OR OPERATORS) SEVERAL TIMES OUTNUMBERS THOSE EMPLOYED BY THE SOFTWARE FIRMS.
35. COOPERATION WITH UNIVERSITIES THAT PREPARE PROGRAMMERS MAY ALSO HELP TO GENERATE A POOL OF EMPLOYEES TO FILL A COMPANY'S GROWING NEEDS. FOR MORE INFORMATION CONTACT:
YEREVAN STATE UNIVERSITY
MR. RADIK MARTIROSYAN, RECTOR
1 ALEK MANUKYAN STR., YEREVAN-49, ARMENIA
TEL: (374-2) 554-629, 554-702, 551-824
FAX: (374-2) 151-087, 554-641
E-MAIL: GAYANE@ARMINCO.COM
DEPARTMENT OF INFORMATICS AND COMPUTING SYSTEMS
MR. VLADIMIR YEGHIAZARYAN, HEAD OF DEPT
(374-2) 550-602
STATE ENGINEERING UNIVERSITY OF ARMENIA
MR. YURI SARGSYAN, PRESIDENT
105 TERYAN ST., YEREVAN-9, ARMENIA
TEL: (374-2)525-726
FAX: (374-2)151-068
E-MAIL: POLITECH@ARMINCO.COM
DEPARTMENT OF INFORMATICS AND COMPUTING SYSTEMS
MR. RUBEN AGHGASHYAN, HEAD OF DEPT.
TEL: (374-2)525-729
36. MANAGERS: AMERICAN UNIVERSITY OF ARMENIA (AFFILIATE TO UCLA) PRODUCES ENGLISH SPEAKING MBA MANAGERS THAT HAVE BOTH WESTERN MENTALITY AND KNOWLEDGE OF LOCAL ENVIRONMENT. FOR MORE INFORMATION CONTACT:
AMERICAN UNIVERSITY OF ARMENIA
40 MARSHAL BAGHRAMYAN ST., YEREVAN-19, ARMENIA
TEL: (374-2) 271-602
FAX: (374-2) 151-048
LABOR RATES
-----------
37. INEXPENSIVE LABOR REPRESENTS ONE OF THE STRONGEST INCENTIVES FOR FOREIGN INVESTORS IN ARMENIA. COMPENSATION RATES AND BENEFIT PACKAGES DIFFER SIGNIFICANTLY FROM THE STATE TO PRIVATE SECTOR, AND BETWEEN VARIOUS INDUSTRIES. PROGRAMMERS IN LEADING SOFTWARE FIRMS ARE PAID FROM 300 TO 600 DOLLARS PER MONTHS, WHILE THE TOP LOCAL MANAGEMENT STAFF IN FOREIGN-OWNED COMPANIES GETS FROM 500 TO 3,000 PER MONTHS AFTER TAXES. SOME COMPANIES ALSO PROVIDE MEDICAL COVERAGE FOR THEIR EMPLOYEES.
INTERNET CONNECTION
-------------------
38. THIS CAN BE PROVIDED THROUGH TWO MAIN INTERNET PROVIDERS THROUGH CABLE, OR RADIO MODEM CHANNELS, OR DIRECT SATELLITE CONNECTIONS. SOME OF THE U.S. SOFTWARE FIRMS IN ARMENIA ARE SUCCESSFULLY MANAGED VIA INTERNET FROM THEIR HEADQUARTERS IN THE U.S. THE PROVIDERS ARE:
ARMINCO GLOBAL TELECOMMUNICATIONS CO., LTD.
ANDRANIK ALEXANYAH, DIRECTOR GENERAL
26 ISAHALYAN ST., 3RD FLOOR, YEREVAN-9, ARMENIA
TEL: (374-2) 526-326, 526-313
FAX: (374-2) 285-082
E-MAIL: POSTMASTER@ARMINCO.COM
SUPPORT@ARMINCO.COM
WEB SITE:HTTP://WWW.ARMINCO.COM
INFOCOM CLOSED JOINT STOCK COMPANY
A. GABRIELIAN, CHAIRMAN
22 SARYAN ST., 4TH FLOOR, YEREVAN-2, ARMENIA
TEL: (374-2)530-369, 531-039, 528856
FAX: (374-2)528-856
E-MAIL: POSTMASTER@MTD.ARMENIA.SU
39. NOTE THAT INFOCOM HAS RECENTLY BECOME PART OF THE GREEK OWNED
"ARMENIA TELEPHONE COMPANY" (ARMENTEL), WHICH HOLDS AN EXCLUSIVE
LICENSE FOR ALMOST ALL TYPES OF FIXED AND MOBILE SERVICES ON THE
TERRITORY OF ARMENIA. ARMENTEL CAN BE REACHED AT 2 AHARONYAN
ST., FLOOR 9, YEREVAN-14, ARMENIA; PHONE: (374-2) 580-123;
288-912, 151-000, 507-032; FAX: (374-2) 151-001
40. TELECOM LICENSING FOR OPERATION OF TRANSMITTING AND RECEIVING TELECOM EQUIPMENT, AND FREQUENCIES IS DONE BY THE MINISTRY OF COMMUNICATIONS:
MINISTRY OF POST AND COMMUNICATIONS
UNION BUILDING, REPUBLIC SQUARE, YEREVAN-10, ARMENIA
PHONE:(374-2)526-632
FAX:(374-2)151-555, 151-856
MINISTER - MR. ARTAK VARDANIAN
PHONE: (374-2) 526-632
STATE ADMINISTRATION FOR RADIO FREQUENCIES
PHONE: (374-2) 554-942
LICENSING DEPARTMENT
PHONE: (374-2) 524-391.
COPYRIGHT PROTECTION
--------------------
41. ARMENIA ADOPTED THE COPYRIGHT LAW IN 1996. THE IMPLEMENTING AGENCY IS:
NATIONAL COPYRIGHT AGENCY (NCA)
19A KORYUN ST., YEREVAN-9
TEL:(374-2)527-350, 529-492
FAX:(374-39) 06-873
CONTACT: VLADIMIR M. KOSTANDYAN, CHIEF.
42. NCA WAS ESTABLISHED ON DECEMBER 27, 1994. ARMENIA'S MEMBERSHIP IN WIPO INTELLECTUAL PROPERTY TREATIES INCLUDES: WIPO CONVENTION, PARIS CONVENTION, MADRID AGREEMENT (MARKS); PCT SINCE DECEMBER 25, 1991. DECLARATION OF CONTINUED APPLICATION IN ARMENIA OF THE WIPO CONVENTION, PARIS CONVENTION, MADRID AGREEMENT (MARKS) AND THE PCT DEPOSITED ON MAY 17, 1994.
43. SOME U.S. SOFTWARE FIRMS BELIEVE THAT SOFTWARE PROTECTION IS NOT ADEQUATELY REFLECTED IN THE LAW, AND THAT IT NEEDS TO BE FURTHER IMPROVED.
TECHNICAL BARRIERS
------------------
45. ELECTRICITY REQUIREMENTS: 220 VOLT AC, 50 HZ. FOR MORE
INFORMATION ON EXISTING TECHNICAL REQUIREMENTS, U.S. SUPPLIERS
SHOULD CONTACT:
DEPARTMENT FOR STANDARDIZATION, CERTIFICATION, AND
METROLOGY OF ARMENIA ("SARM")
49/2 KOMITAS AVE.
YEREVAN 375051 ARMENIA
TEL: (374-2) 234-580
FAX: (374-2) 285-620
MR. SAMVEL MOVSESYAN, DIRECTOR, CERTIFICATION DEPT.
(SPEAKS ENGLISH, TEL: (374-2)234-580)
MR. PAP ASLANYAN, DIRECTOR, FOREIGN RELATIONS (SPEAKS ENGLISH,
TEL: (374-2) 234-778; E-MAIL: SARM@ARMINCO.COM)
TAXES
-----
46. RESIDENT COMPANIES NORMALLY PAY THE FOLLOWING TAXES:
- CORPORATE TAX (UP TO 25 PERCENT, ON PROFITS, FOR LEGAL ENTITIES
ONLY)
- VAT (20 PERCENT)
- EXCISE TAX (ON A LIMITED ASSORTMENT OF GOODS)
- LAND TAX
- PROPERTY TAX
- SOCIAL INSURANCE AND PENSION FUND FEES (NOT TO EXCEED $26 PER
MONTH PER EMPLOYEE)
47. RESIDENT EMPLOYEES ALSO PAY THEIR INCOME TAXES (UP TO 30 PERCENT) AND SOCIAL INSURANCE FEES (UP TO 3 PERCENT)
48. INVESTMENT INCENTIVES: THE LAW ENCOURAGES LARGE FOREIGN INVESTMENT. IF THE SHARE OF A FOREIGN INVESTOR IN THE STATUTORY CAPITAL OF A RESIDENT COMPANY IS AT LEAST 500 MILLION DRAM ($1 MILLION AT CURRENT EXCHANGE RATE) THE FOLLOWING TAX DEDUCTIONS ARE MADE
A. 100 PCT OF THE PROFIT TAX FOR THE NEXT TWO YEARS AFTER THE INVESTMENT IS MADE.
B. 50 PCT OF PROFIT TAX STARTING FROM THE THIRD YEAR AND UNTIL THE TENTH YEAR AFTER INVESTMENT
49. IN CASE OF TAXPAYER'S LIQUIDATION DURING THE TAX- PRIVILEGE PERIOD, THE PROFIT TAX FOR THE ENTIRE PERIOD OF OPERATION WILL BE CHARGED IN FULL.
GUARANTEES
----------
50. FOREIGN INVESTMENTS CAN NOT BE NATIONALIZED OR CONFISCATED. INVESTORS MUST BE COMPENSATED FOR ANY DAMAGE OR PROFIT LOSS RESULTING FROM ACTIONS OF THE STATE BODIES OR STATE OFFICIALS. BY THE LAW ON FOREIGN INVESTMENTS OF 1994, IN CASE THE ARMENIAN LEGISLATION WHICH WAS IN EFFECT WHEN THE INVESTMENTS WERE ORIGINALLY MADE CHANGES, THE INVESTORS MAY CHOOSE TO CONTINUE USING IT FOR A PERIOD OF 5 YEARS AFTER THE CHANGE.
EXCHANGE CONTROLS
-----------------
51. HARD CURRENCY MAY BE IMPORTED WITHOUT LIMITS AND MAY BE EXPORTED TO THE EXTENT THAT IT WAS PREVIOUSLY IMPORTED OR LEGALLY EARNED IN ARMENIA. NO RESTRICTIONS FOR REPATRIATION OF PROFITS EXIST AFTER DUE TAXES ARE PAID. NO RESTRICTIVE TRANSFER TAXES EXIST.
IMPORT AND INVESTMENT BARRIERS
------------------------------
52. NO SPECIAL IMPORT CERTIFICATION IS REQUIRED BY CUSTOMS FOR IMPORTS OF PC EQUIPMENT. IMPORTS OF EQUIPMENT TO CONSTITUTE CHARTER CAPITAL OF A COMPANY ARE NOT TAXED. FOR OTHER PC EQUIPMENT IMPORTS, FISCAL BARRIERS INCLUDE 10 PERCENT IMPORT DUTY LEVIED ON THE IMPORTS' CIF VALUE AS WELL AS 20 PERCENT VALUE ADDED TAX (VAT) PAID BY IMPORTER AND COLLECTED UPON CROSSING THE BORDER.
53. GENERAL NON-DISCRIMINATION AGAINST U.S. EXPORTS IS STIPULATED BY THE AMERICAN-ARMENIAN TRADE AGREEMENT OF 1992, WHICH PROVIDES FOR MFN STATUS RELATIONS BETWEEN THE COUNTRIES. ADDITIONAL INVESTMENT PROTECTION IS GUARANTEED BY A BILATERAL INVESTMENT TREATY (BIT) ALSO SIGNED IN 1992.
FINANCING
---------
54. LOCAL PROJECT FINANCING IS STILL NON-EXISTENT AS LOCAL BANKS PROVIDE ONLY SHORT-TERM AND FULLY COLLATERATED LOANS (1-3 MONTHS) WITH HIGH INTEREST RATES OF UP TO 60-70 PERCENT ANNUALLY. U.S. COMPANIES ARE ADVISED TO USE EXTERNAL RESOURCES, AS WELL AS U.S. GOVERNMENT INSTITUTIONS AS OPIC AND USTDA IN WASHINGTON. NOTE THAT OPIC AND TDA WILL SUPPORT ONLY THOSE PROJECTS THAT WOULD RESULT IN MORE U.S. EXPORTS AND CREATION OF JOBS IN THE U.S. EBRD AND WORLD BANK DIVISIONS, INCLUDING IFC AND MIGA ARE ALSO OPEN FOR PROJECTS IN ARMENIA.
ADDITIONAL SOURCES
------------------
55. COUNTRY COMMERCIAL GUIDE: FOR MORE INFORMATION ON BUSINESS PRACTICES AND THE BUSINESS ENVIRONMENT IN ARMENIA IN GENERAL, U.S. EXPORTERS SHOULD ORDER THE COUNTRY COMMERCIAL GUIDE PREPARED BY THE FCS YEREVAN. COUNTRY COMMERCIAL GUIDES ARE AVAILABLE FOR U.S. EXPORTERS FROM THE NATIONAL TRADE DATA BANK'S CD-ROM OR VIA THE INTERNET. PLEASE CONTACT STAT-USA AT 1-800- STAT-USA FOR MORE INFORMATION. COUNTRY COMMERCIAL GUIDES CAN BE ACCESSED VIA THE WORLD WIDE WEB AT HTTP://WWW.STAT-USA.GOV. AND HTTP://WWW.STATE.GOV. THEY CAN ALSO BE ORDERED IN HARD COPY OR ON DISKETTE FROM THE NATIONAL TECHNICAL INFORMATION SERVICE (NTIS) AT 1-800-553-NTIS.
U.S. EMBASSY YEREVAN
18 MARSHAL BAGHRAMIAN ST., YEREVAN-19
TEL: (374-2) 524-661, 521-611, 151-551
FAX: (374-2) 151-550
AMBASSADOR - PETER TOMSEN
ECON OFFICER - TERESA MANLOWE
FCS COMMERCIAL OFFICER - ANDREW HOVHANNISYAN
This report is provided courtesy of the Business Information Service for the Newly Independent States (BISNIS)