Month: August 2008

RA FOREIGN AFFAIRS MINISTER ACCEPTED THE SECRETARY GENERAL OF THE CSTO

armradio.am
21.08.2008 16:44

On the eve the RA Foreign Affairs Minister accepted the Secretary
General of the Collective Security Treaty Organization (CSTO) Nikolay
Bordyuzha. The interlocutors discussed the further presidency of
Armenia in the CSTO and the organizations which will be realized
during it. They discussed the affairs referring to the council of
the Foreign Affairs Ministers of CSTO as well. During the meeting the
sides exchanged ideas about the most important problems and tried to
find solutions to them.

From: Emil Lazarian | Ararat NewsPress

TURKEY AND THE CAUCASUS

The Economist
Aug 21st 2008

Waiting and watching

A large NATO country ponders a bigger role in the Caucasus

Erdogan plays the Georgian flagAT THE Hrazdan stadium in Yerevan,
workers are furiously preparing for a special visitor: Turkey’s
president, Abdullah Gul. Armenia’s president, Serzh Sarkisian, has
invited Mr Gul to a football World Cup qualifier between Turkey and
its traditional foe, Armenia, on September 6th.

If he comes, Mr Gul may pave the way for a new era in the
Caucasus. Turkey is the only NATO member in the area, and after the
war in Georgia it would like a bigger role. It is the main outlet
for westbound Azeri oil and gas and it controls the Bosporus and
Dardanelles, through which Russia and other Black Sea countries ship
most of their trade. And it has vocal if small minorities from all
over the region, including Abkhaz and Ossetians.

Turkey’s prime minister, Recep Tayyip Erdogan, has just been to
Moscow and Tbilisi to promote a "Caucasus Stability and Co-operation
Platform", a scheme that calls for new methods of crisis management
and conflict resolution. The Russians and Georgians made a show of
embracing the idea, as have Armenia and Azerbaijan, but few believe
that it will go anywhere. That is chiefly because Turkey does not have
formal ties with Armenia. In 1993 Turkey seal ed its border (though not
its air links) with its tiny neighbour after Armenia occupied a chunk
of Azerbaijan in a war over Nagorno-Karabakh. But the war in Georgia
raises new questions over the wisdom of maintaining a frozen border.

Landlocked and poor, Armenia looks highly vulnerable. Most of its
fuel and much of its grain comes through Georgia’s Black Sea ports,
which have been paralysed by the war. Russia blew up a key rail bridge
this week, wrecking Georgia’s main rail network that also runs to
Armenia and Azerbaijan. This disrupted Azerbaijan’s oil exports,
already hit by an explosion earlier this month in the Turkish part
of the pipeline from Baku to Ceyhan, in Turkey.

"All of this should point in one direction," says a Western diplomat
in Yerevan: "peace between Armenia and Azerbaijan." Reconciliation
with Armenia would give Azerbaijan an alternative export route for
its oil and Armenia the promise of a new lifeline via Turkey. Some
Armenians gloat that Russia’s invasion of Georgia kyboshes the chances
of Azerbaijan ever retaking Nagorno-Karabakh by force, though others
say the two cases are quite different. Russia is not contiguous with
Nagorno-Karabakh, nor does it have "peacekeepers" or nationals there.

Even before the Georgian war, Turkey seemed to understand that
isolating Armenia is not making it give up the parts of Azerbaijan that
it occupies out side Nagorno-Karabakh. But talking to it might. Indeed,
that is what Turkish and Armenian diplomats have secretly done for
some months, until news of the talks leaked (probably from an angry
Azerbaijan).

Turkey’s ethnic and religious ties with its Azeri cousins have long
weighed heavily in its Caucasus policy. But there is a new worry that a
resolution calling the mass slaughter of Armenians by the Ottoman Turks
in the 1915 genocide may be passed by America’s Congress after this
November’s American elections. This would wreck Turkey’s relations with
the United States. If Turkey and Armenia could only become friendlier
beforehand, the resolution might then be struck down for good.

In exchange for better relations, Turkey wants Armenia to stop backing
a campaign by its diaspora for genocide recognition and allow a
commission of historians to establish "the truth". Mr Sarkisian has
hinted that he is open to this idea, triggering howls of treason
from the opposition. The biggest obstacle remains Azerbaijan and
its allies in the Turkish army. Mr Erdogan was expected to try to
square Azerbaijan’s president, Ilham Aliev, in a visit to Baku this
week. Should he fail, Mr Gul may not attend the football match–and
a chance for reconciliation may be lost.

VERSIONS OF CONFLICTS’ MILITARY SOLUTION ARE DOOMED TO FAIL, ARF BUREAU MEMBER SAYS

Noyan Tapan

Au g 21, 2008

YEREVAN, AUGUST 21, NOYAN TAPAN. Any versions of military solution
of conflicts are doomed to fail, which the Georgian-South Ossetian
conflict demonstrated as well. Stating this at the August 21 press
conference, member of the ARF Bureau Aghvan Vardanian said: "He who
takes up a sword will fall from it. This is the lesson to be drawn
from the Georgian events."

Speaking about the possible impact of these events on Nagorno Karabakh,
he noted that Karabakh is a much more successful state unit than
Ossetia, and while being unrecognized, it can serve as an example for
some recognized states in many issues. In the opinion of A. Vardanian,
what happened is an occasion for the main political forces of Armenia
to show their unity in the Karabakh problem and other problems of
national and state importance.

In the current situation A. Vardanian considered it important that the
Georgian authorities in cooperation with Armenia ensure the rights of
the Armenians of Javakhk as an ethnic minority. At the same time he
underlined that everything possible should be done to prevent Javakhk
from being used as a tool for increasing the tension by a third force.

In his words, one should also be careful about the activity displayed
by Turkey so that any initiatives to proceed from this activity will
not take place at the expense of Armenia.

SERZH SARGSYAN SENDS TELEGRAM OF CONDOLENCE TO KING OF SPAIN

Noyan Tapan

Au g 21, 2008

YEREVAN, AUGUST 21, NOYAN TAPAN. Armenian President Serzh Sargsyan
sent a telegram of condolence to King of Spain Juan Carlos I in
connection with the plane crash at Madrid Airport on August 20. The
text of the telegram was submitted to NT by the RA president’s press
service. It reads:

"It caused me a deep pain to hear of the plane crash at Madrid Airport
which resulted in many deaths.

At this moment of mourning in Spain, on hehalf of the Armenian people
and myself, I express condolences to you, the families of those whi
died in the crash and to the friedly Spanish people."

ACCORDING TO AGHVAN VARDANIAN, COALITION HAS ALL NECESSARY OPPORTUNITIES TO SOLVE PROBLEMS IN ARMENIA

Noyan Tapan

Au g 21, 2008

YEREVAN, AUGUST 21, NOYAN TAPAN. If the president of Turkey Abdullah
Gul arrives in Armenia in connection with the football match bewteen
the national teams of Armenia and Turkey to be held in Yerevan on
September 6, actions of protest will be organized against Turkey,
member of the ARF Bureau Aghvan Vardanian declared at the August 21
press conference.

As for the internal political situation in Armenia, he said that it
is not always that the factor of a third force is a balance. According
to him, being part of the ruling coalition, the ARF believes that the
coalition has all necessary opportunities to solve the problems in
the country. In the words of A. Vardanian, it is necessary that the
main influential political forces be unanimous regarding national,
state and strategic problems of inportance to Armenia.

WHAT WILL THE UNIFICATION OF TAX AND CUSTOMS SERVICE GIVE
Vasak Tarposhyan

Hayots Ashkharh Daily
21 Aug 2008
Armenia

As we know by President Serge Sargsyan’s decree the Customs State
Committee and Tax State Committee merge into one State Income
Committee.

During the recent years the issue of the reunification of tax and
customs service has always been discussed. But for different reasons
no practical steps were taken in that regard. For the last 7 years
tax and customs services have been working separately. If in terms
of the collection of tax entries it did show some good results,
the same can’t be said about the improvement of the economic field.

There were lots of failings in tax and customs system, which required
a review. The role of these two structures is especially important
in terms of the provision of economic rivalry and the formation
of an equal field, whereas the situation in Armenia in that regard
is far not a secret. And one of the main reasons is that these two
structures used to function separately, sometimes giving chance for the
formation of shadow economy and the intensification of disproportionate
competitive relations.

Undeniably, by separated structure, during the previous years the tax
officers ensured significant growth of entry: the average yearly growth
of income fluctuates within 25-30%. But nevertheless the percentage
of tax collection in gross domestic product i s significantly small
in Armenia. Actually during the recent one-two years this index is
being improved, but it still remains very small as compared with not
only the developing but also regional countries.

If in Georgia tax-GDP ratio reaches 24-25%, in Armenia, as of the
last year’s results it made up 16,1%. Of course a serious growth
is predicted for this year. But it will never solve the issue of
overcoming the obstacles created in economy and tax system.

The issue of the low level of tax-GDP ratio in Armenia was permanently
raised by international financial organizations. Of course there are
certain objective reasons for that. But it is a fact that the growth
of shadow economy is the main one.

No matter how the previewed indexes of the tax income were permanently
completed during the recent years, the separate functioning of
the tax officers created favorable conditions for the formation of
shadow economy.

And the existence of unequal competitive field is the bases of the
before mentioned.

The issue first of all exists in the tax field, in the sphere of the
realization of imported goods. As a consequence of not coordinated
actions, which was conditioned by the separate functioning of
tax-customs system lots of goods imported to Armenia get lost in
the tax field. By realizing these goods in hidden ways the importers
evade taxes.

As a consequence of all the before mentioned not only does the state
budget, but also the whole economy that loses its competitive
advantages suffer. It serves as a reason for the so-called
"undocumented" commodity circulation, which becomes one of the bases
of the formation of shadow.

The second important factor of the unification of tax-collecting
bodies is the transformation of the goods from the tax field by customs
border. That is to say the export. As we know the export from Armenia
is not only free of taxes but the principle of VAT compensation also
functions. Whereas certain phenomena take place in this process due
to which only the income of the state suffers.

We must also underscore that in Armenia tax and customs services used
to function jointly, as one ministry. But in that status the system
worked for only 2 years, which is naturally a very short term for
the assessment of the productiveness of similar structure.

HEROIC DEED IN SPORTS

Hayots Ashkharh Daily
21 Aug 2008
Armenia

Armenia’s football representative youth team made a really heroic
deed yesterday by wining a victory over the Turkish youth team, by 2:1.

Our guys manifested a really strong will, didn’t lose courage because
of the missed goal and during the last minutes of the game two times
they made Rejep Kimran take out the ball from their gate. Karlen
Lazarian and Henrik Mkhitaryan became the heroes of the meeting.

By the way all the players and even the fans who were celebrating
the victory in Yerevan streets yesterday, were real heroes.

From: Emil Lazarian | Ararat NewsPress

HYPOTHEC: WILL IT REALLY ABOLISH THE ACUTENESS OF FLAT PROBLEM?

Azat Artsakh Daily
21 Aug 08
Republic of Nagorno Karabakh [NKR]

An interview of "Azat Artsakh" with the executive director of the
Investment Fund of Artsakh Karen Essayan As it’s known, flat problem
in Nagorno-Karabakh has been always urgent, but for objective reasons
it has received special acuteness after azrbaijan-karabakhian war.

It’s known also, that together with other problems, assistance of
solution of this vital problem enters in the functions of investment
fund headed by you… – Really, flat problem has been always the
most difficult solved problem all the time in the range of social
problems of Nagorno-Karabakh. Because of unleashed war of Azerbaijan,
in the result of which a great part of flats has suffered, as well
as because of restoring flat construction those years, then passing
on to market relations in all the spheres of economy, solution
of flat problem for the majority of the NKR population has become
vain dream. Though it’s important to note, that just after the war,
the republic took up restoration of ruined cities and villages. The
state by means of realization of a number of purposeful programs,
particularly directed to the construction of new flats, has solved to
the extent of possibilities and solves the problem of improvement of
flat conditions of sepa rate groups of the population: families of
killed azatamartiks and invalids of Karabakh war, families of many
children and socially unprovided.

Unfortunately, a great part of the population, till today, hasn’t
an own roof. Especially young families first of all appear in grave
situation, who are forced either to live with parents or to rent a
house. From this viewpoint rural settlements are not excluded, where
48.6 per cent of NKR population lives. For the purpose of softening
certainly the acuteness of the above-mentioned problems, improving
flat conditions of the population, spuring flat construction in
the republic, NKR government, by the decision of February 26, 2008,
has defined an order of rendering assistance for acquiring flats and
dwellings by means of bank hypothetic crediting.

Corresponding to that decision, realization of this program is placed
on the investment fund of Artsakh. – It’s necessary to confess,
that the hypothec is a new conception for Nagorno-Karabakh. Interprete
please, the essence of hypothec crediting, which is observed by the
management of the republic as one of the most effective means of
solution of flat problem.

– Even in developed industrial countries solution of flat problem
doesn’t take an elemental turn, but, we may say it is under the state’s
control. In these countries solvent citizens can acquire flats, and
hence, the main part of population=2 0makes use of hypothec credits
and the state assists actively crediting.

Hypothec is a pledge of real estate, mainly land or buildings,
for the purpose of getting loan. Hypothec is a type of pledge, in
case of which loaned property is not inherited to a creditor, but
remains at a borrower’s disposal. – When the state decided to put
the program of hypothec crediting in action, a task was set by the
President of the republic to make the hypothec accessible for wide
layers of the population.

In what way this problem is solved ? – It’s necessary to note,
that a program of state assistance on hypothec crediting is realized
first time in NKR. Let’s remind, that yearly rate of pays of hypothec
credits allocated by commercial banks hesitates within the limits of
12-16 per cent.

So, the program realized by us, lets make credits accessible for the
population. Within the scopes of this program the state uses different
forms of financial mediation. The first, it’s a partial subsidizing of
rate of pays of credits, in case of which the state subsidizes half
of yearly 12 per cent pay allocated by banks, the rest 6 per cent
a citizen pays at the expense of his own means. The second, it’s an
allotment of purposeful unpercentage loan for paying initial deposit,
the size of which compiles the difference between the percentage of
determined initial deposit and 10-p ercentage pay, paid at the expense
of a citizen’s own means. And, at last, the third: it’s a construction
of a flat by menas of hypothec crediting.Let’s note also, that state
assistance on hypothec crediting includes the following directions:
purchase of a flat or a dwelling, restoration of a flat or a dwelling.
– Is an activity noticed in flat market after the beginning of the
program’s realization? Do the people apply to the investment fund for
assistance in the work of getting hypothec credits? – From March 21,
2008 till August 15, 2008, 519 citizens have applied to the investment
fund of Artsakh. 208 or 40.08 per cent of them have expressed wish
to buy a flat or a house, 79 or 15 per cent – to build a house,
232 or 44,7 per cent – to repair the flat or house. 182 citizens of
those, who have tendered to acquire a flat, wish to buy a flat in the
first zone (Stepanakert), 26 – in the second zone (NKR regions), 63
citizens want to build a house in the first zone, 16 – in the second
zone, 187 citizens want to repair the flats in the first zone, 45 –
in the second zone. After registration of experimental deduction,
the represented claims of the citizens are discussed at the sessions
of the fund’s financial committee, where a final resolution is passed
about rendering state financial assistance to this o r that citizen
or about rejecting it.

PRESIDENT OF THE NKR VISITED "ARTSAKH FRUIT" COMPANY

Azat Artsakh Daily
21 Aug 08
Republic of Nagorno Karabakh [NKR]

On 21 August President of the Nagorno Karabagh Republic Bako Sahakyan
visited "Artsakh Fruit" company operating in capital Stepanakert.

The President got acquainted on-site with processing of agricultural
products, carried out by the company as well as plans and problems
of "Artsakh Fruit". The Head of the State expressed his satisfaction
with the work of the company, stressing the importance of guaranteeing
high quality and wide range of products, as well as social protection
of workers.

NKR premier Ara Haroutyunyan and other officials accompanied the
President during the visit.

"IT’S NECESSARY TO GO OUT FROM PASSIVE SITUATION…
Svetlana Khachatryan

Azat Artsakh Daily
20 Aug 08
Republic of Nagorno Karabakh [NKR]

On August 16th NKR President Bako Sahakyan, accompanied by the Premier
A.Harutyunyan, ministers of social maintenance and urban planning,
the head of board of administration of Martakert and other officials,
visited Martakert region for getting acquainted with the works on the
spot, informing the people about the realization of the state programs,
making some corrections for their works conforming them to the people’s
anxieties and needs. The NKR President was in Nor Maragha, Vaghuhas:
the representatives of Khnkavan and Harutyunagomer communities assisted
at the meeting. The heads of the communities represented the situation
of their villages.On the whole, the problems of Artsakh villages are
the same: water, flat, road, communication, school, kinder-gardens
and so on. Today number one problem is flat problem everywhere.But as
Bako Sahakyan noted, the country hadn’t enough might to direct the
construction power from Stepanakert or district centres to villages
for doing the works.The President called the population to collaborate
with them. The state is ready to give the village financial means,
and in case of need technical equipment, if they create by their own
strength constructional companies and work in their communities. At
the sam e meeting the head of the community of Harutyunagomer began his
speech by approving the call of collaboration of the President, saying
that the boundary was simple, and he, as the head of the community,
was ready to get down to creation of constructional brigades in
the village.Then assertion of the President followed it. "Please,
tender! Go out from passive situation and display activity! If we
don’t support you, this time accuse us".