The Government of Armenia has introduced a new state support project for the metallurgical and metalworking industries, aimed at stimulating the processing of ferrous and non-ferrous metals, which are of strategic importance for the country.
The new government initiative provides comprehensive support to companies in the metallurgical sector through a loan subsidy program. The project, planned to launch on January 1, 2025, aims to increase the complexity of manufactured products and enhance added value by expanding production chains and attracting investments.
The need for such support arose after the Armenian Parliament amended the Law "On State Duty" in 2024, making the export of simple metal products a licensed activity. Although these changes were intended to deepen metal processing, companies that had made significant investments in the industry began reporting financial difficulties due to restrictions on exporting basic products.
The new state support mechanism will allow private companies to receive loans for the processing or storage of metals with partial compensation of interest rates. This will help alleviate financial difficulties caused by production downtime and support enterprises that have already invested in the industry but have not yet established the production of complex products.
The project, scheduled to run until December 31, 2025, includes financial monitoring and reporting mechanisms to ensure transparency and program efficiency. It is part of the government’s 2021-2026 program aimed at increasing economic complexity and extending production chains.
