Month: October 2008

AMERIABANK (ARMENIA) FORECASTS USD EXCHANGE FLUCTUATIONS WITHIN 10%

ARKA
Oct 20, 2008

YEREVAN, October 20. /ARKA/. The Armenian Ameriabank forecasts USD
exchange fluctuations within 10%.

At a press conference at the Novoti international press center,
Sergey Shevchenko, Director of the Trade Operation Department,
Ameriabank, reported that the bank does not expect any serious exchange
fluctuations, as the Central Bank of Armenia (CBA) is efficiently
managing the market, and no serious fluctuations have been recorded
over the last year.

"During the following year the cost of one US dollar will not fall
below 300 AMD, and the upper level will not exceed 320 AMD, as the
Central Bank is rather active on the market," Shevchenko said.

According to the CBA-prepared Review of quarterly polls of commercial
banks and credit institutions, commercial banks forecast a stable
average USD exchange rate for this December – 299.7 AMD/$1.

The banks also forecast an average USD exchange rate of 304.22 AMD/$1
for next March.

In 2007, the average annual exchange rate was $1/342.08 AMD. Last year
saw 16.13% USD depreciation against AMD – a fall in the USD exchange
from 363.5 AMD/$1 down to 304.22 AMD/$1. Twenty-two commercial banks
and 23 credit institutions are currently operating in Armenia.

AMERIABANK MAY PURCHASE BANK IN ARMENIA

ARKA
Oct 20, 2008

YEREVAN, October 20. /ARKA/. Ameriabank plans to purchase a new bank
in Armenia.

At a press conference at the Novosti international press center,
Tigran Jrbashyan, Director for Development, Ameriabank CJSC, reported
that Ameriabank is considering a number of possibilities.

The bank plans aggressive development, considering the possibility
of purchasing new banks, which requires the use of not only its own
capital, but also the purchase of banks, he said.

Jrbashyan pointed out that the negotiations are under way, and
Ameriabank will make its choice.

"Any specific terms are yet difficult to cite. However, of importance
is our readiness for such steps and intent to ensure growth,"
Jrbashyan said.

He could not say whether the new bank will operate as part of
Ameriabank, or as an independent one.

"Both variants are possible. Of importance is Ameriabank being able
to effect this transaction," he said.

The Ameriabank CJSC (formerly Armimpexbank) was founded in July 1992,
using the facilities of the Armenian branch of the USSR Vnecheconombank
(Foreign Economic Bank). On September 8, 1992, the bank was licensed
by the Central Bank of Armenia (CBA).

Last August, the bank’s stock was purchased by TDA Holdings Limited, an
affiliate company of Russia’s leading investment company Troika Dialog.

This May the bank was renamed Ameriabank.

According to the preliminary information for the 3rd quarter at
ARKA’s disposal, Ameriabank had the eighth largest assets among the
22 commercial banks operating in Armenia. The bank also ranked 12th
in terms of liabilities, 4th in terms of total capital, being the
leader in terms of authorized capital.

LIVING IN COMMUNITY: THE GOAL OF CHRISTIAN-MUSLIM DIALOGUE
[email protected]

Consejo Mundial de Iglesias (Comunicados de prensa)
gement/eng/a/article/1722/christians-from-many-tra d.html
20 de octubre de 2008
Switzerland

"Living together in community must take the centre stage of
Christian-Muslim dialogue," said Catholicos Aram I at the opening of
an 18-20 October ecumenical consultation aimed at developing a common
Christian theological understanding of dialogue with Islam.

"The prevailing misperceptions, ambiguities, polarizations, tensions
and collision [of values between Muslims and Christians], hijacked and
sharpened by politico-ideological agendas and geo-political strategies,
can be transformed only through a shared life in community," stated
Aram I, head of the Armenian Apostolic Church (See of Cilicia),
in delivering the key-note speech of the consultation.

For Aram I, such a "community building must take place on the basis of
equal rights and obligations, as well as full and active participation
in all aspects of society life, including decision-making". It
"presupposes a quality of integration that provides equal
opportunities, ensures diversity and enhances mutual acceptance".

Among the "divisive issues" to be addressed, Aram I listed how
both religions deal with the relationship between faith and reason,
the response to secularism, the concept of mission and the tension
between human rights and Islamic law.

Having a "rich history" of Christian-Muslim dialogue, the ecumenical
movement needs to keep pursuing it with a "more focused" agenda,
"touching on issues that pertain to the life of the people," said
Aram I.

Organized by the World Council of Churches (WCC), together with a
number of Christian world communions, the World Evangelical Alliance
(WEA) and the Roman Catholic Church, the consultation has gathered
some 50 church leaders and experts on Christian-Muslim dialogue in
Chavannes-de-Bogis, outside Geneva, Switzerland.

The consultation emerged from an ecumenical process launched by the
WCC in response to "A Common Word Between Us and You," a letter signed
by 138 Muslim scholars and addressed to Christian leaders around the
world in October 2007.

UAR PRESIDENT TO LAUNCH PROJECTS IN ARMENIA

ARKA
Oct 20, 2008

YEREVAN, October 20. /ARKA/. President of the Union of Armenians of
Russia (UAR), World Armenian Congress (WAC) and of the Accord concern
(Russia) Ara Abramyan stated his intention to invest $150mln in the
construction of a hotel and a cannery in Armenia.

"We plan the construction of a 5-star hotel in Yerevan for next year,"
he said. This is a response to the Armenian President’s appeal to
Armenian businessmen to exercise initiative in development projects
in Armenia.

Abramyan also reported his plans to construct a cannery near
Yeghegnadzor, Vaiots Dzor region.

Among the businessmen who responded to the Armenian President’s
appeal are the American-Armenian businessman, Executive Director of
the Metal Prince Company Serob Ter-Poghosyan and his partners, who
expressed their willingness to invest $50mln in industrial, tourism
and social development programs in the Lori region of Armenia during
the next three years.

Also, the Russia-based Armenian businessman Samvel Karapetyan is
ready to invest $200mln in business and social projects.

EXPERT FORECASTS 7-8 PER CENT INFLATION IN ARMENIA FOR 2008

ARKA
Oct 20, 2008

YEREVAN, October 20. /ARKA/. An inflation rate of &-8 per cent is
expected in Armenia this year.

At a press conference at the Novosti international press center,
Tigran Jrbashyan, Director for Development, Ameriabank CJSC, said
that the planned inflation rates will not be registered this year,
but "there will be no disaster either".

Despite the current relatively high inflation rates, they will fall
down to 7-8 per cent toward the end of the year, Jrbashyan said.

In its protocol on forecasts and monetary policy for the 4th quarter,
the Central Bank of Armenia (CBA) forecasts an inflation rate of 5.8%
for the 4th quarter of 2008 and an annual inflation rate of 3.5%
for the 3rd quarter of next year.

Ion the other hand, an alternative, pessimistic, scenario of
developments on international markets, forecasts an inflation rate
of 5.9% for the 4th quarter of 2008 and 5% for the 3rd quarter of
next year.

An inflation rate of 0.5% was registered in Armenia this September
as compared with August, with an annual inflation rate being 11.3%
– a fall of 0.2%.

An inflation rate of 4% ((±1.5%).is budgeted in Armenia for 2008

–Boundary_(ID_lxs7cvSMStt6YK/pkH79AA)–

SECOND SECTION OF IRAN-ARMENIAN GAS MAIN TO BE COMPLETED THIS MONTH

ARKA
Oct 20, 2008

YEREVAN, October 20. /ARKA/. The construction of the second,
Kajaran-Ararat, section of the Iran-Armenia gas main is to be completed
late this month.

At his meeting with journalists in the village of Lernashey, Syunik
region, Project Manager Vladimir Margaryan reported that the work
was to be completed on October 15, but weather conditions proved
unfavorable.

According to him, the last, 3km-long, section will connect the gas
main with the "point of destination", the town of Ararat about 60km
of Yerevan.

Margaryan pointed out that the most difficult work was done at an
altitude of 3,000 meters above sea level.

Ararat’s milder climate will make the builders’ task easier.

The Iran-Armenia gas main will increase the capacity of Armenia’s
gas transmission system and ensure the supply of gas to Armenia’s
thermal power plants.

The first 40km-long section, Meghri-Kajaran, was put into operation
on March 19, 2007.

The construction is carried out by ArmRosgasprom, which holds a
monopoly of supply and distribution of Russian gas in Armenia.

The project is estimated at $220-$250mln.

By the end of this autumn, Armenia will receive the first 400mln cubic
meters of natural gas from Iran, with this amount to be brought up
to 2.3bln cubic meters.

Under the contract, Iran is to supply a total of 6b ln cubic meters
of gas to Armenia during 20 years. The contract provides for a 5-year
prolongation and an increase in gas supplies up to 47bln cubic meters.

All the gas is to be use for generation of electric power for domestic
consumption and export to Iran – 3kwh of energy against one cubic
meter of gas.

CASH FLOWS FROM ARMENIA’S PARTNER COUNTRIES REASON FOR PESSIMISTIC FORECASTS, PREMIER SAYS

ARKA
Oct 20, 2008

YEREVAN, October 20. /ARKA/. The reason for gloomy forecasts of
Armenia’s economy is financial flows from the country’s main trade
partners, RA Prime Minister Tigran Sargsyan said last week.

"Since the European Union has 60% share in Armenia’s trade, we
depend much on the financial situation in the European trade zone,"
the premier said, summing up the Armenian delegation’s visit to
Washington on October 9-15.

Armenia-EU trade turnover totaled $1,219.3mln in January-August 2008 –
20.5% year-on-year increase. The share of EU in Armenia’s trade was
36.8% in the reporting period. European exports to Armenia rose 9.6%
to $392mln.

Armenian imports to EU increased by 26.4% to $827.3mln.

"Inflation risks remain high in EU, and the European Central Bank
has to lower the interest rate to avoid further economic downturn,"
Sargsyan said, stressing the importance of overhauling European and
U.S. economies.

"However, the record-low fuel prices in stock markets have no influence
on consumer prices due to considerable economic lags," the premier
was quoted saying.

He underlined the Washington debates and talks over 2009 fuel price
forecasts.

Sargsyan urged Armenia to keep a vigilant watch over economic
developments in Europe, adding setback of import prices will be =0
Abeneficial for Armenia’s economic programs, as the main reason for
this year’s record-high inflation was the hike in import prices.

"If import prices plummet, Armenia’s harsh monetary and credit policy
will help curb inflation and the Central Bank will be able to lower
interest rates, covering liquidity needs and boosting economy,"
the premier said.

ARMENIA RESOLUTE IN IDEA TO BECOME FINANCIAL CENTER AMID GLOBAL CRISIS

ARKA
Oct 20, 2008

YEREVAN, October 20. /ARKA/. Armenia will not change its decision
to become a financial center despite the global financial crisis,
RA Prime Minister Tigran Sragsyan said last week.

Armenian leadership, the Central Bank and leading market participants
met in Dilijan city on May 24 to discuss Armenia’s possible
transformation into a regional business centre.

"The financial crisis opens up new opportunities," the premier said,
summing up the Armenian delegation’s visit to Washington on October
9-15.

According to Sargsyan, many economists will state that a financial
crisis opens a new page in economy, as it helps to get rid of negative
uptakes, balancing markets and giving a realistic picture of financial
instruments.

The premier stressed the importance of drawing up concrete plans and
attracting people’s attention to the offered instruments.

"Our opponents, who say it is necessary to accumulate funds before
becoming a financial centre, are wrong, as no financial center has
been shaped this way," Sargsyan was quoted sating.

To assume leading positions, Armenia needs to conduct more financial
operations, offer deposit services for regional issuers, open
investment funds and asset management accounts, offer financial
services for both the Islamic world and Armenian communities, as
well as carry out effective finan cial reforms inside the country,
according to the prime minister.

From: Emil Lazarian | Ararat NewsPress

ADEQUACY OF ARMENIAN BANKING SERVICE AT HIGH LEVEL, PREMIER SAYS

ARKA
Oct 20, 2008

YEREVAN, October 20. /ARKA/. Adequacy of Armenia’s banking system
is at a high level, RA Prime Minister Tigran Sargsyan said lat week,
summing up Armeian delegation’s October 9-15 visit to Washington.

"The proof is the ratio between the banks’ total capital worth 218bln
drams and assets amounting to 985bln drams," the premier added.

Sargsyan believes financial property owners can withstand any financial
risks with the help of their own capital and if something goes wrong
in the sector, they are the first to run risks.

"We do not have to worry about local financial system thanks to
high-level capitalization of Armenia’s banking system," the premier
said.

Touching upon deposits, loan investments and shares, Sargsyan
underlined this year’s sustainable financial growth.

"Both the loan investments and resource base are showing a tendency
of growth," he added.

Armenia’s Government made a decision on September 19 to increase this
year’s budget expenditures and receipts by 13.3bln drams (around
$44mln) with the help of tax proceeds. Cutting the budget deficit,
the country will be able to guarantee macroeconomic stability and we
do not have to worry about that," the prime minister said.

Twenty-two commercial banks are currently operating in Armenia. The
country’s bank assets ro se 23.53% to 966.7bln drams between Q1
and Q3. Liabilities of local commercial banks increased by 23.01%
to 749.4bln drams. The banks’ capital totaled 217.3bln drams (25.39%
growth) and the authorized capital stock amounted to 134.5bln drams
as of September 30.

Loan investments rose 45.53% to 608.3bln drams between January and
September. Liabilities to customers increased by 20.13% to 525.8bln
drams.

Net profit of local banks reached 19.9bln drams in September, showing
a 15.81% year-on-year growth.

RUSSIAN PRESIDENT ARRIVING IN ARMENIA

armradio.am
20.10.2008 10:26

Russia’s President Dmitry Medvedev is arriving in Armenia today for a
two-day official visit at the invitation of the President of Armenia,
Serzh Sargsyan. This will be Dmitry Medvedev’s first visit to Armenia
at the post of President of the Russian Federation.

RA President’s Spokesman Samvel Farmanyan told Armenpress that
following the official welcome ceremony the leaders of the two
countries will head for the President’s Office, where the President
of Armenia will give an official dinner in honor of his Russian
counterpart.

"In the framework of ethe official visit the Presidents of Armenia
and Russia will meet face-to-face, following which the delegations
will meet in an enlarged format. Different documents on cooperation
will be signed as a result of negotiations. Serzh Sargsyan and Dmitry
Medvedev will give a joint press conference on the results of the
negotiations," the Spokesman informed.

The two Presidents will attend the solemn ceremony of opening of the
Russian Square in Yerevan. On the sidelines of the official visit
the Russian president will visit Tsitsernakaberd, where he will lay a
wreath at the memorial to the Armenian Genocide victims, will leave a
note in the Guest Book and will plant a fire tree at the Memory Square.