Authorized capital of venture fund to make $40 million.

YEREVAN, December 1, /ARKA/. Vache Kirakosian, head of an economy ministry department in charge of information and high technologies, said Monday the authorized capital of a venture fund to be established in Armenia will make $40 million.

Speaking at a news conference at Novosti Armenia International Press Center, he said the venture fund is being established by the government of Armenia and the Russian Sitronix company. He said the venture fund will be registered soon and the initial $40 million are expected to double in the second and future stages of the project. The Armenian government’s share in the project will be between 10-15%, he said, adding that the government will insist that its funding be directed at financing new companies and fresh ideas.

He said the World Bank and some other international organizations are taking interest in this project.
The venture fund is supposed to be established on the basis of Mars electronic plant that was handed to Russia as part of a deal christened Assets for Debt whereby Armenia handed five enterprises to Russia to clear its almost $100 million debt.

According to estimates, from $3 to $6 million of the venture fund may be spent on creation of the seed fund for development of projects at the initial stage. The selected projects will be implemented at Mars plant, which was built in 1988-94 for production of printed-circuit boards. Currently the plant operates at a fraction of its capacity. In 2008 Mars plant, as well as the Institute of Material Science, Institute of Mathematical Machines and Automated Systems were handed to Russian Sitronix company, which plans to merge them into a single research center. -0-