Government Dissolves 'Armenian Fruit' Company; Accumulated Losses Total 591.1 Million Dram

The government decided in today’s session to dissolve the publicly traded company 'Armenian Fruit,' which is 100% state-owned.

The justification for this decision states that 'Armenian Fruit' was established on November 3, 2011, by a governmental decision of the Republic of Armenia. The company was created within the framework of a financing agreement signed between the Republic of Armenia and the International Fund for Agricultural Development (IFAD) to implement the sub-component 'Support to the Fruit and Nut Production Sector' of the Rural Development Program.

As of 2016, the program has concluded. The company has ceased operations and has no sources of income; its staff has been laid off, except for the director and accountant.

The owner of 100% of the shares, numbered 132-136, is the Republic of Armenia, with management authority assigned to the Ministry of Economy of the Republic of Armenia. The statutory capital amounts to 660.7 million dram.

According to the balance sheet compiled as of October 1, 2019, the assets amount to 81.2 million dram, reflecting the carrying value of fixed assets. The accumulated losses total 591.1 million dram, with liabilities of 11.6 million dram, of which 7.2 million dram is related to salaries.

The company’s losses mostly arise from payroll expenses and the corresponding tax obligations to the state budget. The continuation of the company's existence leads to the accumulation of obligations and losses, hence the recommendation to dissolve it.