YEREVAN, JULY 21, ARMENPRESS. In order to increase the profitability of commercial companies in Armenia, it has been proposed to set a minimum profitability margin threshold, at least 6%, Arman Sahakyan – head of the State Property Management Department said during the discussion with participation of public sector and several commercial companies on energy field, reports Armenpress.

“Based on the results of financial-economic analysis of 182 commercial companies for 2013-2015, it was revealed that the profitability index of majority of the companies is quite low and comprised nearly 1.2% on average. Given that this figure is quite low, it was proposed to set minimum profitability threshold for companies, and based on the size of the 6% banking refinancing rate, the size of the threshold has been adopted”, Sahakyan said.

According to him, it is necessary to make radical changes on constantly increasing the effectiveness of the economic activity of commercial companies, control on program figures of the economic activity.

He informed that new rules for conducting expertise monitoring have been submitted to the Justice Ministry, new forms of business programs of companies have been developed and submitted to the discussion of respective structures. The new approaches will enable to realistically assess the effectiveness of companies’ activity as a result of financial-economic monitoring.