Month: June 2005

AS OF MAY 1, 915 LEGAL ENTITIES AND 3,276 PRIVATE ENTREPRENEURS REGISTERED IN ARMENIA
YEREVAN, JUNE 4, NOYAN TAPAN. According to the RA National Statistical
Service, as of May 1, 2005, 856 limited liability companies (Ltd),
49 closed joint-stock companies (CJSC), 2 state-owned CJSCs, 3,276
private entrepreneurs and 915 legal entities were registered in the
united journal of the State Enterprises Register of the RA Ministry
of Justice. 401 legal entities and 961 private entrepreneurs were
liquidated from 1994 to the indicated day. Most of the companies
liquidated were those operating in the spheres of retail trade (130),
construction (50) and manufacturing industry (66).

DEADLINE FOR GROUP EXMANINING PROBLEM OF FROZEN DEPOSITS WITH
ARMECONOMBANK EXTENDED FOR TWO MONTHS
YEREVAN, JUNE 4, NOYAN TAPAN. The deadline for the submission of a
conclusion by the working group examining the problem of RA citizens’
frozen saving deposits with Armeconombank was extended for another
two months – from June 1 to August 1. Head of the Group, Chairman of
the RA Securities Commission Eduard Muradian announced this at the
June 3 press conference. According to him, extra time is needed for a
more detailed analysis of the problem – in particular, it is envisaged
to examine other CIS countries’ experience in this matter. To recap,
the Group, which was set up under the decree signed by RA President
Robert Kocharian on February 3, is composed of 13 members, mainly
representatives of the Central Bank of Armenia and various ministries.

ARMECONOMBANK PLANS TO MAKE PROFIT OF 1 BLN 200 MLN DRAMS THIS YEAR
YEREVAN, JUNE 4, NOYAN TAPAN. 2004 was a successful year for
Armeconombank – the bank achieved a growth in all indices. Executive
Director of the bank Ashot Osipian stated this at the annual meeting
of Armeconombank shareholders on June 3. According to him, in the year
under review, the bank assets grew by 45.3% to 27.5 bln drams (about
61.3 mln USD). Last year’s credit investments of the bank increased
by 38.2% to 12.1 bln drams, while on-call deposits by 71.3% to 11.5
bln drams. In 2004, the profit rose by 30.4% on 2003 and made about
1.1 bln drams. Thanks to this, the 1,450 shareholders of the bank
will be paid dividents of 250 drams per share or 10% of the annual
profitablity this year too. According to A. Osipian, the nominal value
of a share is currently 2,500 drams, its accounting value – 5,826
drams. The market value of shares has not been decided yet. According
to Executive Director, now Armeconombank has 27.5 thousand credit
recipients and 2 thousand depositors. The bank’s policy of low rates
accounts for the small number of depositors – the interest rates
on deposits were reduced twofold in 2004. A. Osipian said that the
bank mainly attracts funds from international organizations. It is
envisaged to increase the amount of credit resources to 14 bln drams
in 2005. This year the bank also plans a 60% increase in transfers
and a profit of 1.2 bln drams. Armeconombank will take an active
part in the mortgage market. According to A. Osipian, the bank has
provided mortgage loans of about 3 mln USD since 2004. At present,
the mortgage loans provided by the bank carry an annual interest rate
of 12-14% and are repayable in 5-7 years.

ARMECONOMBANK PLANS TO ISSUE FIRST-EVER MORTGAGE OR CORPORATE BONDS IN ARMENIA
YEREVAN, JUNE 4, NOYAN TAPAN. Executive Director of Armeconombank Ashot
Osipian stated at the June 3 press conference the bank plans to issue
mortgage or corporate bonds for the first time in Armenia. Acording
to him, the bank is now conducting negotiations with a number of
investment companies, and the final terms of the bonds issue will be
specified by the autumn. The maturity of the bonds is expected to be
2 years.
From: Emil Lazarian | Ararat NewsPress

ARMECONOMBANK TO IMPLEMENT NEW CREDIT PROGRAM WITH EBRD IN JULY
YEREVAN, JUNE 3, NOYAN TAPAN. Armeconombank envisages to start
implementing a new credit program with the European Bank of
Reconstruction and Developoment (EBRD) from July. Executive Director
of the bank Ashot Osipian stated at the June 3 press conference the
bank expects about 5 mln USD to be provided by EBRD, with most of
funds to be used for crediting small and medium business. A. Osipian
noted that a 0.5 mln-dollar EBRD-funded technical assistance program
will also be implemented this year in the bank. By this program,
Armeconombank’s activities will be brought into line with international
stasndards. Structural reforms will also be conducted, as well as
a new system of risk management introduced in the bank. To recap,
EBRD has a stock of 25%+1 share in the capital of Armeconombank.

RA NA SPEAKER AND OSCE/ODIHR DIRECTOR DISCUSS PROCESS OF REFORMS IN ARMENIA
YEREVAN, JUNE 3, NOYAN TAPAN. Issues concerning the process of
reforms carried out in Armenia were discussed at RA NA Speaker Artur
Baghdasarian’s June 3 meeting with Christian Shtrohal, Director of
OSCE Office for Democratic Institutions and Human Rights, and Elaine
M.Conkievich, Deputy Head of OSCE Yerevan Office. According to NA
Public Relations Department, Artur Baghdasarian mentioned the efficient
cooperation between OSCE and OSCE Yerevan Office, as a result of which
the Electoral Code has been already reformed and adopted, the bill
“On Conducting Meetings, Rallies, Processions and Demonstrations” is
being discussed. Artur Baghdasarian also informed Christian Shtrohal
about the discussions on constitutional amendments. Both parties
attached importance to the necessity of joint work with the Venice
Commission. Christian Shtrohal expressed the readiness of OSCE to
render consultative assistance, as well as to assist to the process
of implementation of reforms, mentioning that they are

ELIMINATION OF MONOPOLIES IS IMPOSSIBLE IN ARMENIA, MEMBER OF STATE
COMMISSION ON ECONOMIC COMPETITION PROTECTION STATES
YEREVAN, JUNE 3, NOYAN TAPAN. Like in some other countries, it is
impossible to eliminate monopolies in Armenia. Deputy Chairman of
the RA State Commission on Economic Competition Protection Pavel
Ghaltakhchian expressed this opinion at the June 2 conference
“The Competition in Armenia. Expert Discussion”. According to him,
although the formation of monopolies is a negative phenomenon, their
existence in small economies is sometimes inevitable. For example, 90%
of granulated sugar is now imported into the country by one company,
however, even if a granulated sugar plant is built, it will be the
only one and gain a monopoly. That is why the Armenian Commission on
Economic Competition Protection fights against violations committed
by the companies that hold a monopoly rather than against these
companies. P. Ghaltakhchian said that contrary to popular belief,
the existence of oligopolies rather than monopolies is typical of many
Armenian markets. As regards the statement made by Russian businessmen
during their recent visit to Armenia that they are concerned about
the expansion of monopolies in some sectors of the Armenian economy,
P. Ghaltakhchian reassured that such opinions are mainly the result of
certain publications in the press. At the same time he did not rule
out that there might be “hidden” monopolistic economic entities that
run 100% of a market through their subsidiaries or similar enterprises.

PROFIT TAX REVENUES OF RA STATE BUDGET INCREASE BY 67.9% IN JANUARY-APRIL
YEREVAN, JUNE 3, NOYAN TAPAN. In January-April, 2005, the profit
tax revenues of the RA state budget increased by 67.9% on the
same period of 2004 and made 15 bln 243.5 mln drams (about 36.3
mln USD). According to the RA National Statistical Service, in the
months under review, VAT grew by 27.6% to 41 bln 946.4 mln drams,
while excise tax declined by 12.7% to 10 bln 558.9 mln drams. In
the same period, income tax grew by 25.8% to about 7 bln drams,
simplified tax – by 8.8% to 2.3 bln drams and fixed payments – by 14%
to 3 bln 926.7 mln drams. The customs duty revenues increased by 49.4%
to 4 bln 812.3 mln drams. Other tax revenues of the state budget grew
by 79.6% in January-April of 2005 and made 10 bln 930.9 mln drams.

SADOYAN IS GOING TO PRESENT SEVERAL DOZENS OF PROPOSALS BEFORE SECOND READING OF DRAFT CONSTITUTIONAL REFORMS
YEREVAN, JUNE 3, NOYAN TAPAN. The faction of the National Democrates
calls all political forces immediatly to start activities led to saying
“no” to the constitutional referendum. Arshak Sadoyan, the party
Chairman, a NA Deputy stated this at the June 3 press-conference. He
mentioned that a considerable part of political forces has already
joined that proposal, particularly, the “Ardarutiun” (“Justice”) bloc
and the “Azgayin Miabanutiun” (“National Unanimity”) party. According
to him, after the former constitutional referendum’s failure,
the authorities will attempt to do thier best that thier draft
to constitutional amendments is accepted this time. Expressing a
confidence that the authorities will carry out falsifications during
the referendum, Sadoyan mentioned that the process of confronting it
can become a start for a power shift. “I think that it must be stated
in an open text just now,” the speaker added. Sadoyan informed that
as the political coalition assures that the draft to constitutional
reforms passed only one reading and may undergo radical changes till
the second reading, he decided to present 30-40 proposals of amendments
which will wholly be based on the principals of his draft. The MP
informed that he succeded to meet with the PACE Venice Commission’s
experts with great difficulties, and during the meeting it became
clear that the draft constitutional amendments authored by him were
not completely sent to the Commission’s examination. He mentioned that
he agreed with those principals of the draft proposed in 2001, which
related to the human rights and the judicial system that is why the
chapters were not included in the draft. Though he made explanations,
a not-complete variant was sent to the Venice Commission from the
NA. As a result, the European experts, estimating his draft, expressed
sorrow that the author left without attentian the human rights issues
so important for democracy.

VENICE COMMISSION’S SECRETARY FULL OF HOPE THAT IN OCTOBER ARMENIA TO HAVE COSTITUTION AFFIRMED BY WHOLE POPULATION
YEREVAN, JUNE 3, NOYAN TAPAN. “I am full of hope that this October
Armenia will have a Constitution which will be adopted by the whole
population of the country including the opposition,” Gianni Buquicchio,
the Venice Commission’s Secretary stated at the RA National Assembly
on June 2. According to him, certainly, a good Constitution must be
in keeping to the international standards but taking into account
national peculiarities as well. In this region of Europe, and not only
in Armenia, there are serious problems in the sense of democratizing
the mentality, he mentioned. G.Buquicchio expressed his satisfaction
with “the meeting held in sincere and constructive atmosphere”
with Tigran Torosian, the Head of the PACE Armenian delegation, the
Chairman of the Ad hoc Committee for the European Integration Issues,
the RA NA Deputy Chairman, and with representatives of the political
coalition, authors of the draft constitutional amendments adopted in
the first reading at the National Assembly. He also mentioned that he
expects mutual understanding concerning the Venice Commission experts’
proposals. Experts’ reservations relate to three main points: balance
of power’s branches: independent from president’s, semi-president’s,
parliamentary governance structure’s election, independence of the
judicial power and improvement of the local self-governance system,
particularly, adoption of the electoral principal of Mayor’s post. If,
however, the Armenian party does not accept the experts’ proposals,
the Commission will make a corresponding statement. Buquicchio informed
that, in the press information spreaded by the Commission these days,
it was particularly mentioned that the Commission has cooperated with
Armenia since 2000 but the results can not be considered as giving
hope yet. According to the Commission’s Secretary, the Commission
has no mechanisms of using sanctions, the levers are only moral. But
the Commission’s statements are already taken into account by such
political bodies of parliamentary assemblies, within the framework
of the OSCE, the EU and “New Neighbourhood” program. “That’s why it
is very important that Armenia’s Constitution first of all satisfy
the population of the country, the second, the European partners,”
he emphasized. According to the Commission’s Secretary, they are
ready for a frank cooperation and cherish great hopes that, finally,
all political parties of Armenia will participate in the process and
will approve the draft constitutional amendments.