Government Starts Liquidation Process of ANIF

The government of Armenia has initiated the liquidation process of the Armenian National Interests Fund (ANIF). The decision was made during today's cabinet meeting, as reported by Sputnik.

The foundation for this initiative stems from a report on ANIF led by the Prime Minister on March 14, 2024, regarding the measures to cease the company's operations.

It is noted that to address the company's accumulated liabilities, a decision was adopted on June 27, 2024, which led to the signing of an agreement on July 29 between the State Property Management Committee and the company regarding the ‘Use of Financial Support Provided by the State in the Form of Grants’. As a result, ANIF was allocated a total of 1.7 billion drams.

“With this amount, as of August 8, obligations totaling 1 billion 277 million 980 thousand drams have been settled, which include loan repayments, interest payments on loans and penalties, employee salaries, final settlements, severance payments, rents, and other payments,” the decision's rationale states.

The decision also outlines the transfer of shares of ANIF-owned companies “Masdar Armenia 1,” “Entrepreneur+State Anti-Crisis Investment Manager,” and “Southern Terminal,” along with the land parcels owned by the company, as donations to the Republic of Armenia.

After these tasks are completed, the Armenian National Interests Fund will be expected to be liquidated. The liquidation process will be financed from the remaining balance of the 1.7 billion dram fund allocated to ANIF, which exceeds 422 million drams.

It's worth noting that the Armenian National Interests Fund (ANIF) was established by a decision of the Armenian government in April 2019. According to a decision by the government on May 23, 2024, the authority to manage the 100% state-owned share package of the company was transferred to the State Property Management Committee of the Ministry of Territorial Administration and Infrastructure.

Additionally, it should be recalled that in May 2024, the government decided to liquidate ANIF. During 2022-2023, the Anti-Corruption Commission and the State Control Service of Armenia uncovered cases of violations and embezzlements within the fund. The Investigative Committee is currently examining those cases.

The International Monetary Fund also discovered reporting and management-related issues in ANIF in 2023, leading to limitations on its operations imposed by the Armenian government.