Month: October 2008

ARMENIA INTERNATIONAL AIRPORTS COMPANY’S ABUSE OF ITS DOMINATING
POSITION TO BE DISCUSSED AT OCTOBER 17 SITTING OF RA STATE COMMISSION
ON PROTECTION OF ECONOMIC COMPETITION

YEREVAN, OCTOBER 16, NOYAN TAPAN. A regular sitting of the RA State
Commission on Protection of Economic Competition will be held on
October 17. A number of issues will be discussed, in particular, the
issue of abuse of the dominating position by Armenia International
Airports (Zvartnots) company – the use of unreasonaly high and
discriminatory prices during the sale of aviation fuel. According to
spokeswoman for the commission Armine Udumian, the results of studies
of sale prices of wheat, flour and rice, as well as results of some
other proceedings will also be discussed at the sitting.

AMERIABANK COMPLETES PLACEMENT OF BONDS OF IMEX GROUP

YEREVAN, OCTOBER 16, NOYAN TAPAN. On September 15 Ameriabank
successfully completed the placement of Imex Group company’s 100,000
coupon bonds of the total amount of 1 billion drams (aout 3.3 million
USD). The nominal value of a bond is 10,00 drams, with a circulation
period of 24 months. This was announced at the October 16 press
conference with the participation of the head of Imex Group’s
presidential staff Tigran Galstian, the director of Ameriabank’s
development department Tigran Jrbashian, the director of the investment
banking operations department Andrey Shinkevich and the director of the
commercial operations department Sergei Shevchenko.

In the words of T. Galstian, the placement of the bonds bears evidence
of the investors’ trust in Imex Group. He stated that the issuing of
bonds will have continuous character, and other instruments of money
attraction will be used.

A. Shinkevich in his turn said that the placement of bonds was done in
the hard situation in Armenia’s securities market as a result of the
international financial crisis. He expressed a positive opinion about
the fact the bonds were placed among over 40 investors – legal and
natural persons, with insurance and investment compnaies being most
active. By official data of Ameriabank, such a wide range of investors
is unique in the Armenian market. During the placement, Ameriabank used
a competitive mechanism of placement for the first time in the
country’s corporate bond market when the investors proposed a level of
yield instead of establishment of a fixed level of yield by the placing
body. As a result of the use of the competitive mechanism, the yield of
Imex Group’s bonds made 11-11.5%.

S. Shevchenko said that within the next five days Ameriabank will
finish listing of Imex Group’s bonds on the Armenian Stock Exchange,
after which the bonds will be quoted at about a 11% annual yield level,
while the difference in sale and purchase prices will make 0.5% at the
maxiumum. In his opinion, these indices will be competitive. It was
mentioned that the bank will also conclude repo deals with these
securities for a period from 7 days to 3 months. Ameriabank purchased
15% of Imex Group’s bonds so as to implement their real price quotation.

The coupons of Imex Group’s bonds will be paid once a quarter. The
investors were also given the right of early redemption (sale option)
one year after the placement. The open subscription for bonds lasted
until October 10, the placement – until October 13-15.

"DOLLAR-THRIFTY" COMPANY – WORLD LEADER IN CAR RENTAL MARKET IN ARMENIA

YEREVAN, OCTOBER 16, NOYAN TAPAN. The opening ceremony of a service
center of Dollar-Thrifty company – a world leader in the car rental
sector took place at Yerevan’s Marriott Armenia Hotel on October 15.
Beau Monde Services partner company will provide services by the
exclusive right of franchise in Armenia. During a talk with NT
correspondent, the Founder-Director of Beau Monde Services Vahe
Harutyunian said that they will provide car rental services to both
Armenian citizens and foreigners. Besides, the Dollar-Thrifty’s
services in Armenia will include transportation of the Marriott
Armenia’s guests to Zvartnots Airport which will make their travel
conditions in Armenia more comfortable.

In the opinion of V. Harutyunian, the entrance of Dollar-Thrifty into
Armenia will increase the competitiveness of the Armenian car rental
market in terms of prices, quality and variety of cars for rent because
only two years ago this market just started to develop whereas now more
than 10 companies, including 5 internationally recognized ones, operate
in the sector. He said that the presence of Dollar-Thrifty in Armenia
will help bring the level of the car rental market into line with
international standards.

V. Harutyunian explained that one peculiarity of the indicated market
is that the demand depends not so much on the variety of cars for rent
as on the quality of services, the high level of which is ensured
according to the internal standards of Dollar-Thrifty. "Otherwise the
quality of our services will not meet the high requirements of
Marriott," V. Harutyunian noted, adding that Beau Monde Services
delivers car rental services through its offices located at the
Marriott Armenia and another office. It is envisaged expanding the
network of office.

Naturally, car rental services are related to insurance of
responsibility to these services, drivers, passengers and third
persons. In this issue the partner of Beau Monde Services is Ingo
Armenia, one of the leading companies in Armenia’s insurance market. An
agreement on provision of comprehensive insurance services has been
signed with Ingo Armenia.

It is noteworthy that the opening ceremony of the Yerevan office of
Dollar-Thrifty (its head office is in London) was attended by Richard
Ault, the company’s Managing Director for Franchise Sales and
Development in Europe and Sub Saharan Africa. After seeing the sights
in Armenia, he said that Armenia is an exotic country of a unique style
and unblended culture. R. Ault considered this circumstance as an
additional factor of development of Dollar-Thrifty’s market in Armenia.

ARMENIAN NATIONAL COMMITTEE of NEW JERSEY TO HOST PUBLIC FORUM FOR
ARMENIAN COMMUNITY

RIDGEFIELD, OCTOBER 16, ARMENIANS TODAY – NOYAN TAPAN. The Armenian
National Committee of New Jersey (ANC of NJ) is pleased to announce a
free public forum that will be taking place on October 24. The forum
will include ANCA Executive Director Aram Hamparian, Congressman Scott
Garrett (R-NJ-5), and other local members of Congress.

The event is the first of a series of quarterly "community updates"
that will be organized throughout the calendar year. Attendees will
also have an opportunity to learn how they can be involved locally and
future dates of meetings and events occurring in New Jersey. They will
also have an opportunity to hear the latest updates from Armenians for
Obama and the instrumental role the community has been playing this
election.

ARA ABRAHAMIAN AWARDED ORDER OF HONOR

MOSCOW, OCTOBER 16, ARMENIANS TODAY – NOYAN TAPAN. RF President Dmitry
Medvedev awarded RF Order of Honor to Ara Abrahamian, UNESCO Goodwill
Ambassador, the Chairman of the Union of Armenians in Russia, the World
Armenian Congress, the Soglasie company on October 15 in the Kremlin.
A. Abrahamian was awarded for his great contribution to strengthening
of international cooperation, active public and charity activity. The
Azg daily reported this.

YEKATERINA ROZHDESTVENSKAYA’S PERSONAL EXHIBITION ENTITLED PRIVATE
COLLECTION OPENS IN YEREVAN

YEREVAN, OCTOBER 16, NOYAN TAPAN. On October 16, Yekaterina
Rozhdestvenskaya’s personal exhibition entitled Private Collection
opened in the Painters’ Union of Armenia.

Computer retouches of world painting masterpieces, representing the
portraits of Russia’s famous politicians, TV presenters, actors, and
journalists were among the exhibits. In the words of Karen Aghamirian,
the Chairman of the Painters’ Union of Armenia, Y. Rozhdestvenskaya
tried to show how the works of the artists of the Renaissance Era can
be transformed and modernized through modern technologies.

Y. Rozhdestvenskaya has graduated from Moscow State Institute of
International Relations. She is the author of numerous translations.
Then she got involved in photography and has been publishing her works
in Caravan of History monthly since 1999. Her works have been presented
in different countries of the world.

RA First Lady Rita Sargsyan and RA Minister of Culture Hasmik Poghosian
were present at the opening of the exhibition.

ARMENIAN FOOTBALL NATIONAL TEAM ONCE MORE DEFEATED IN WORLD
CHAMPIONSHIP ELIMINATION TOUR TOURNAMENT

YEREVAN, OCTOBER 16, NOYAN TAPAN. The 4th tour’s match of Football
World 2010 Championship group tournament between national teams of
Bosnia and Armenia took place on October 15 in the city of Zenica. It
ended with the score of 4 to 1. Central full-back Vahagn Minasian
scored the only goal from the Armenian national team.

After 4 matches the six is arranged in the group tournament by the
following succession: Spain 12 points, Turkey 8 points, Belgium 7
points, Bosnia 6 points, Estonia 1 point, Armenia 0 points.

Group tournament’s next tours will be held in 2009. Armenia’s national
team will receive Estonia’s team on March 28. Belgium-Bosnia and
Spain-Turkey pairs will also compete the same day.

OPENING ARMENIAN-TURKISH BORDER WILL NOT RESULT IN WITHDRAWAL OF
RUSSIAN TROOPS FROM ARMENIA, ARTHUR AGHABEKIAN SAYS

YEREVAN, OCTOBER 15, NOYAN TAPAN. Opening the Armenian-Turkish border
will not result in withdrawal of the Russian military base from
Armenia, the former deputy minister of defence, chairman of the
National Assembly Standing Committee of Defence, National Security and
Internal Affairs Arthur Aghabekian stated at the October 14 meeting
with reporters. He said that the presence of Russian military in
Armenia is conditioned by the existence of an agreement between the two
countries, under which Russian border-guards protect not only
Armenian-Turkish border but also Armenian-Iranian one. He neither
denied nor confirmed the rumours about the creation of a second Russian
strong point and the possible stationing of Russian peace-keepers in
Nagorno Karabakh.

"We will not give a single inch to the enemy," he declared when
expressing his attitude to the possibility of returning the liberated
territories. He attached importance to the buffer zone formed around
Nagorno Karabakh in terms of both military and economic security. In
his words, no person in power can make a personal decision on return of
the territories.

According to Vahan Shirkhanian, also a former deputy minister of
defence, the authorities are one thing in Armenia, the people is quite
another, there is no link between them just as any mutual trust and
understanding is absent. Under such conditions he did not exclude the
possibility that the authorities will take a decision to return the
territories. As for Russian military bases, V. Shirkhanian said it will
be a good thing if even one military base is kept in Armenia.

ANC DEMANDS TAKING MEASURES TO ALLEVIATE CONSEQUENCES OF INTERNATIONAL
ECONOMIC AND FINANCIAL CRISIS IN ARMENIA

YEREVAN, OCTOBER 15, NOYAN TAPAN. According to the Armenian National
Congress (ANC), the current international financial crisis requires
that adequate actions be taken which will allow to alleviate the
ruinous consequences of the crisis for Armenia’s financial market and
economy. However, as indicated in the October 15 statement of the ANC
Central Office, by its inaction and the absence of an adequate
response, the Armenian government only contributes to the depeening of
the crisis and shocks in the country.

The ANC demands that with the aim of alleviating the consequences of
the international economic and financial crisis in Armenia, the
following measures should be taken:

The Central Bank of Armenia (CBA) should announce a ban on construction
recrediting by the commercial banks, as well as announce a full-scale
reservation of such credits.

The Armenian government and CBA should announce that they will rule out
all the restrictions related to repayment of deposits, at least in the
case when the term of a deposit has expired.

The government and CBA should guarantee a 100% return of securities
issued by means of IPO by ArmRusgazprom and Valex Group companies. At
the same time, the issuing of new IPOs without the participation of the
Armenian government should be banned.

The Armenian government should urgently make changes in the tax system,
increasing considerably the collection of property tax from expensive
houses occupying large areas. The new rates of property tax should vary
by zones. In particular, property tax collected from elite apartments
in downtown Yerevan should be raised considerably. At the same time, a
raised tax should be introduced for incompleted apartment buildings and
big detached houses.

The Armenian government should announce abolition of the non-tariff
regulation of import which has been used in the past 10 years.

The CBA should remove all the restrictions on money transfers and lift
the bans used against some organizations.

The CBA should assume an obligation to keep, in the next 6 months, the
exchange rate of the Armenian drams within the limits that it together
with the government has established.

In the next 6 months, the government should keep under its control the
amounts of salaries of the high-ranking managers of the commercial
banks and the mining and smelting enterprises. It should also restrict
the opportunities of raising inappropriately the cost prices of
production in the indicated sectors.

Changes should be made in the RA state budget, by reducing by 20% the
budgets of the RA presidential staff, the RA National Assembly, the
ministries and departments of the RA government (except for the
ministries of education, health, science and defence), the prosecutor’s
office and courts.

The government should cancel the decisions on development of new areas
in connection with elite apartment construction. It should exclude the
possibility of new decisions of this kind in the next 6 months.

ENVISAGED AMENDMENTS IN RA LAW O DEFENCE AIM TO MAKE ARMY CONTROLLABE
BY SOCIETY

YEREVAN, OCTOBER 15, NOYAN TAPAN. The aim of the amendments to be made
in the RA Law on Defence is to make the army controllable by civil
society, the chairman of the RA National Assembly Standing Committee on
Defence, National Security and Internal Affairs Arthur Aghabekian
stated at the October 14 press conference. According to him, the
amendments envisage that a civilian shall hold the post of the minister
of defence, while the highest military post will be that of the head of
the General Staff of the Armed Forces. On the whole, the law envisages
increasing the number of civilian positions in the army. A. Aghabekian
said that in the defence sphere, the number of those saying "Yes!"
should decline, whereas the number of those who have their own opinion
should grow.

The former deputy minister of defence Vahan Shirkhanian expressed an
opinion that by this amendment in the law, an attempt is made to
replace the Russian model of controlling the army with the Western one.
In his words, Armenia is facing serious challenges, and a change in the
army control system may cause considerable problems.

Speaking about the envisaged amendments in the RA Law on Military
Service, A. Aghabekian opposed the idea that all young men who reached
18 must be conscripted into the military service. He said that at the
time he was also against the idea of breaking up the military
sub-faculties at higher educational institutions. In his opinion, the
problems of the army (due to the declining population) can be solved in
another way.

In the words of V. Shirkhanian, out of 11 thousand young men who
entered the Armenian higher educational institutions this year, 5,400
ones receive paid education, and only 2 thousand of them may join the
ranks of servicemen for a fixed period, which cannot be a solution to
the problem.