Month: December 2008

NEW SUB-UNIT OF RA TRANSPORT MINISTRY TO DEAL WITH PROBLEMS OF SOUTH CAUCASUS RAILWAYS

Noyan Tapan

Dec 5, 2008

YEREVAN, DECEMBER 5, NOYAN TAPAN. The Armenian railway has always
been in the center of attention of the RA Ministry of Transport
and Communication because it is a transport means of strategic
importance. The RA minister of transport Gurgen Sargsyan said at the
December 5 press conference that a new sub-unit will be soon set up at
the ministry. The sub-unit will deal with problems of South Caucasus
Railways company. In particular, it will implement monitoring and
conduct checks of the investment made.

As regards the railway’s concessionary manager, under the agreement,
it must submit a report on investments to the ministry at the beginning
of next year. Besides, the ministry together with the RA State Revenue
Committee has created a working group which will examine a number of
problems raised by cargo transporting companies, including detention
of cargo.

ARMENIAN-BULGARIAN INTERGOVERNMENTAL COMMISSION’S SITTING TO BE HELD ON DECEMBER 9-10 IN SOFIA

Noyan Tapan

Dec 5, 2008

YEREVAN, DECEMBER 5, NOYAN TAPAN. The sitting of the Armenian-Bulgarian
Intergovernmental Commission will be held on December 9-10 in the
capital city of Bulgaria, Sofia. Armenia’s delegation led by RA
Minister of Transport and Communication Gurgen Sargsian will take
part in the sitting.

According to the Minister, issues regarding European integration,
trade, investments, tourism, information technologies, small and
medium-sized entrepreneurial activity, territorial government,
agriculture, transport spheres will be discussed at the sitting
in particular.

G. Sargsian said that a number of agreements on cooperation in various
spheres will be signed at the end of the sitting.

ACCORDING TO NATIONAL ASSEMBLY DEPUTIES, AMENDMENTS IN TAX LEGISLATION MAY ENDANGER ARMENIAN ECONOMY

Noyan Tapan

Dec 5, 2008

YEREVAN, DECEMBER 5, NOYAN TAPAN. The tax legislation amendments
presented by the RA government to the National Assembly with the aim
of ensuring the execution of the 2009 state budget may be dangerous
for the Armenian economy under conditions of the global economic
crisis. Several deputies of the National Assembly expressed this
concern at the December 5 sitting of the NA Standing Committee
of Economic Issues. In particular, member of "ARF" faction Artsvik
Minasian said that the heavy tax burden may reduce circulating assets
of enterprises and hinder the expansion of their activities.

The package submitted by the government includes 11 bills, including
bills on value added tax, profit tax, fixed payment and honorary
payments.

According to the deputy chairman of the State Revenue Committee Aharon
Chilingarian, the amendments proposed in these bills are aimed at
encouraging investments and local production.

In particular, it is proposed that enterprises with an annual turnover
of less than 58.2 million drams, part of whose operation is taxed by
charging fixed payments, should be given the opportunity to choose the
united tax regime. Among such enterprises are hotels and hairdressing
saloons. A. Chilingarian said that this amendment is proposed at the
suggestion of entrepreneurs themselves, in order to rid them of long
checks and red tape.

In the opinion of deputies, it is risky to raise the rates of fixed
payments. Particularly, the matter concerns fixed payment for hotels
without qualification: it is envisaged fixing the monthly payment at
3 thousand drams per a square meter, which, according to deputies,
is an excessively high payment.

The deputies also expressed discontent with the mechanism of
introducing value added tax (VAT) in agriculture. In the words of
member of "Heritage" faction Larisa Alaverdian, the proposals to
create farms is reminiscent of the Soviet-time collectivization
which, according to the rules of that time, also was allegedly to
be voluntary.

ARMENIAN DELEGATION TAKES PART IN TRACECA CONFERENCE IN BAKU

Noyan Tapan

Dec 5, 2008

YEREVAN, DECEMBER 5, NOYAN TAPAN. The jubilee conference of transport
ministers of the TRACECA Europe-Caucasus-Asia Tranpsort Program member
states was held in Baku on December 4. The RA minister of transport
and comunication Gurgen Sargsyan stated during the December 5 press
conference that the Armenian delegation was led by the head of the
ministry’s external relations department, resident representative of
Armenia to TRACECA, national secretary Gagik Grigorian.

The minister said there were two main issues on the agenda: the
role of TRACECA program in the extension of trans-European transport
networks to neighboring countries, particularly in the development
of one of TRACECA corridors – the South-Eastern Axis; and the action
plan launched in this direction.

According to G. Sargsyan, the conference participants welcomed this
initiative of the European Commission, and agreed to set up a working
group which will discuss proposals on reforms of the program’s
activities and submit a package of decisions for approval at the
regular annual meeting of TRACECA Intergovernmental Commission to be
held in Bishkek in 2009.

MANAGEMENT OF SOUTH CAUCASIAN RAILWAYS TO BE CHANGED

ArmInfo
2008-12-05 18:45:00

ArmInfo. The management of the South Caucasian Railways, the subsidiary
of the Russian Railways, will be changed, Transport and Communication
Minister of Armenia Gurgen Sargsyan said during a press-conference
today.

"We are discussing with the Russian Railways the possibility of
some staff changes," Sargsyan said. "Recently there have been lots of
critical articles concerning the work of the company and we cannot help
being concerned. The media have accused the South Caucasian Railways
of abusing its monopoly status, delaying cargo deliveries and raising
tariffs. Shortly, the Ministry of Transport and Communication of
Armenia will set up a special group for controlling the activities
of the company," Sargsyan said. He pointed out that the key reason
why the South Caucasian Railways had been given concession over the
Armenian Railways was the necessity to improve the cargo traffic
situation in Armenia. "It was a big transaction and it is normal that
the company is facing certain difficulties. I think that the South
Caucasian Railways will gradually improve its work and will justify
our expectations," Sargsyan said.

FOREIGN MINISTER OF AZERBAIJAN: IT IS IMPORTANT TO ENSURE NORMAL LIFE FOR BOTH AZERIS AND ARMENIANS IN NAGORNO-KARABAKH

ArmInfo
2008-12-05 20:17:00

ArmInfo. The conflict in Nagorno-Karabakh continues to be a serious
source of instability. The Moscow Declaration is an important
document. Our presidents have declared that they will seek to resolve
the conflict in the framework of the international law. And in all
documents of the international law Azerbaijan’s territorial integrity
is mentioned as basic principle, Foreign Minister of Azerbaijan Elmar
Mamedyarov said during a meeting of the OSCE foreign ministers.

Day.az quotes Mamedyarov to say that "the meeting of the OSCE FMs is
taking place in a symbolic place – a place where the OSCE was set up
and we must reconfirm our adherence to the principles of the Helsinki
Final Act. We must recognize the principle of territorial integrity
of states and their sovereignty in the light of the last developments."

"Azerbaijan believes that the OSCE has a special role in peace
making. It has big experience in conflict settlement and post-conflict
management and this potential must be employed. For the time being the
OSCE is focused on human rights issues but we advocate a more balanced
agenda. The settlement of the conflict must create a favorable
economic situation in the whole region. The Moscow Declaration
calls for enhancing confidence, ensuring normal life for Azeris and
Armenians in Nagorno-Karabakh, encouraging their communication and
cooperation. We hope that the Armenians understand and share our
position," Mamedyarov said.

A PHOTOGRAPH OF A HANDSHAKE OF ARMENIAN AND TURKISH PRESIDENTS AWARDED BY INTERNATIONAL ORGANIZATION ‘PEACE AND SPORT’

ArmInfo
2008-12-05 20:16:00

ArmInfo. The international organization "Peace Sport" has given the
annual Peace and Sport Image of the Year Award to a photograph of
a handshake of Armenian and Turkish Presidents Serge Sarkissian and
Abdullah Gul.

The official web-site of the organization says that the distinction
"Peace and Sport Image of the Year Award: Turkey and Armenia" for
the best image of fraternization through sport was awarded for a
photograph of the historic handshake between the President of the
Republic of Turkey Abdullah Gul and the President of Armenia, Serge
Sarkissian, during the qualifying match for the Football World Cup
between Turkey and Armenia. Thanks to football, this moment marked
the end of nearly two decades of diplomatic silence.

In a letter sent to "Peace and Sport", Armenian President Sarkissian
proclaimed himself "deeply moved to hear the Grand Jury’s decision to
attribute the Peace and Sport Image of the Year Award to his handshake
with Turkish President Mr Gul." He added that he was convinced that
"Sport is one of the best ways to overcome differences between
nations".

TRANSPORT AND COMMUNICATION MINISTER: ARMENIA’S EFFORTS ARE AIMED AT ENSURING ITS PARTICIPATION IN TRACECA

ArmInfo
2008-12-05 20:19:00

ArmInfo. Armenia’s efforts are aimed at ensuring its participation
in TRACECA. Relevant proposals were presented at the conference of
the transport ministers of TARCECA in Baku Dec 4, Transport and
Communication Minister of Armenia Gurgen Sargsyan said during a
press-conference today.

He said that Armenia was situated on the crossroads of the North-South
route and its capacities could be used for international cargo
operations. At the Baku conference the Armenian delegation was led
by the head of the Foreign Relations Department of the Ministry of
Transport and Communication of Armenia Gagik Grigoryan. The conferees
discussed possibilities of enlarging the transport system in the
framework of the European Neighborhood Policy.

The next conference will take place in Bishkek.

VLADIMIR PUTIN: OUR NEGOTIATIONS WITH ARMENIAN PRIME MINISTER COVERED ALL TOPICS OF OUR COOPERATION IN ALL DIRECTIONS

ArmInfo
2008-12-05 19:59:00

ArmInfo. "Russian investments, the accrued volume of which amounts
to 1.6 bln USD, is a significant factor of recovery of Armenia’s
economy",- Russian Prime Minister Vladimir Putin said at a joint
briefing with Armenian Prime Minister Tigran Sargsyan.

The Russian governmental press-service quotes Putin as saying:
"Today we touched upon all topics of our cooperation in all
directions. Certainly, the issues of cooperation in the economic
sphere were the main direction".

According to him, in 2008 experts point out a good dynamics in the
bilateral trade and economic ties, the commodity turnover is steadily
growing, in 2007 it increased by almost 17%. Putin qualified expansion
of the activity of such large Russian companies as Gazprom, INTER RAO
UES, Russian Railways, as well as some Russian banks, particularly,
VTB in Armenia as quite useful.

Good prospects for joint projects are opening in such spheres
as color metallurgy, transport, construction, banking sphere and
information technology, he said. Putin stressed that the issues of
further promotion of bilateral economic ties are in the focus of the
Russian-Armenian inter-governmental commission’s attention. "I should
add that during the negotiations we assessed its work positively",-
he said and added that the cooperation will be developed. Putin said
that he also discussed with Tigran Sargsyan the further joint steps
in the trade and economic sphere.

"Certainly, we also spoke on problems related to the global
financial crisis which anyhow affects our countries",- Putin said. He
stressed that the Russian party is content with the course of Dec
5 negotiations.

According to the National Statistical Service, in Jan-Oct 2008
Armenia’s foreign trade turnover with Russia grew by 19,2% to
$866,2 mln.

ARMENIAN PRESIDENT SERZH SARGSYAN: BANKS SHOULD BECOME A LIFE-GIVING SOURCE FOR SMALL AND MEDIUM BUSINESS

ArmInfo
2008-12-05 20:22:00

ArmInfo. Banks should become a life-giving source for small and medium
business, Armenian President Serzh Sargsyan said during a working
meeting with the heads of commercial banks, Friday. The Armenian
presidential press-service told ArmInfo that the Dec 5 meeting was
held to adjust the plans – with due regard for the bankers’ opinion –
in conditions of the deepening global economic crisis.

Sargsyan said that banks will receive state support in case of
financing this sphere. "We should stimulate export. Funds should be
searched constantly, and the attracted investments will be directed
to economy development via banks", he said. "The population trusts
banks and we should use this advantage more efficiently. At the
moment, when the financial crisis has turned into an economic one,
it is necessary to jointly take more effective measures, support the
economy spheres which are capable to secure profit, develop and create
new job sites. Armenia has such businesses and projects which can be
implemented even in case of small financing", the president said.

According to him, Armenia has a lot of factors allowing to dampen
the consequences of the global economic crisis. "We can’t remain
detached and declare that the global crisis will not affect Armenia’s
economy. Armenia has had harder times during the period of its
establishment", he added.

Chairman of the Central Bank of Armenia Artur Javadyan presented
the development of the banking system in 2008 and the trends of the
current situation to the president. He stressed that the banking
system has a high degree of capitalization and liquidity which allows
maintaining the stability and opportunity to neutralize a number of
risks. Mutual confidence is formed in the system, he added. According
to him, the growth of capital, which has been observed since early
2008, and the growth of individuals’ deposits continue. Javadyan
also touched upon the activation of Armenian banks’ cooperation
with international financial institutions. Over the last few months
agreements on attracting long-term resources worth a total of 80 bln
AMD have been concluded with these institutions.

The participants in the meeting came to a conclusion that the correct
use of competitiveness and comparative advantages will give Armenia
an opportunity to dampen the consequences of the crisis.

The meeting also covered issues related to long-term crediting at
low rates, and tasks connected with bid security as real estate and
movable estate. The president discussed with the bankers possible
solutions to the specified problems and heard their opinions and
proposals. He assured the bankers that it will not take long to solve
the problems. Finally, Serzh Sargsyan once again stressed that "the
state has enough opportunities to support the banks, and the banking
system should work at crediting with better enthusiasm".

According to the CBA, as of 1 October 2008, there were 22 commercial
banks and 367 branches in Armenia. The aggregate total capital of the
banking system increased by 9,2% to $711 mln in the third qt 2008,
aggregate assets – by 7,1% to $3.2 bln. In the aggregate credit
portfolio of commercial banks the share of consumer credits make
up $571 mln, trade sector – $417 mln, industry – $279 mln, mortgage
credits – $268.2 mln, construction sector – $124 mln. By 1 October
2008, the net profit amounted to $62.4 mln.