YEREVAN, February 19, /ARKA/. In an exclusive interview with ARKA, Ishkhan Karapetyan, executive director of Small and Medium Entrepreneurship Development National Center Fund, said some 296 million Drams worth credit guarantees were approved for 57 SME companies last year, while its overall credit commitments amounted to 640 million Drams.

He said the average interest rate last year was 15.9%. As part of support for start-uppers the Fund offered financial assistance to 65 SME companies. Four SMEs companies in remote, high mountainous regions were given partial subsidizing of credit interests. A total of 240 million Drams were provided to three companies to consolidate their capital.

“I would like to note that financial support is provided to only best projects. Othersare being elaborated for further financing. We offer credit guarantees to operating companies which have financial flows but face problems due to absence of pledge, through commercials banks. For example, to IT companies which posses huge development potential, but lack pledge. In such cases our financing secures quick development,’ he said.

Another serious problem, according to him, along with lack of pledge, is high interest rates. This applies mainly to micro-credits in remote mountainous regions where interest rates begin with 18-20%.

But within the frameworks of the Program for Partial Subsidizing of Credit Interest Rates the Fund provides 10% subsidization of the interest rate.

Regarding the Fund’s plans for 2010 Ishkhan Karapetyan said they will be working through their head office, ten provincial offices and nine representations within the frameworks of government-approved 150 million Dram support to SME.

“We will continue to carry through the projects started in previous years. Besides, we plan to expand our activities in several directions,’ he said. -0-