Month: December 2008

ARMENIAN CENTRAL BANK TO EARMARK 5 BILLION DRAMS FOR MORTGAGE FUND’S ESTABLISHMENT

ARKA
Dec 19, 2008

YEREVAN, December 29. /ARKA/. The Central Bank of Armenia (CBA) plans
to earmark 5bln drams for the establishment of the first mortgage
fund in the country in 2009, CBA Chairman Arthur Javadyan said today
at a reception in the Central Bank.

Establishment of mortgage funds and companies is among Armenia’s
short-term objectives, the CBA chairman said, pointing out elaboration
of a relevant concept. "Moreover, the Central Bank will assign 5bln
drams from its capital expenditures for the establishment of the
first mortgage fund in 2009," he added.

Twenty-two banks with 367 branches operated in Armenia as of September
30, 2008. Total assets and capital of Armenia’s banks amounted to
954.1bln drams and 214.9bln drams respectively, with their liabilities
reaching 739.2bln drams.

Total assets of local bank are around 27% of the country’s GDP,
with crediting of economy reaching 617.5bln drams in end-2008,
compared to 434.5bln drams earlier this year. Consumer loans totaled
172.5bln drams, with mortgage loans amounting to 81bln drams.($1-
308.01 drams).

ARMENIAN PM: MACROECONOMIC INDICATORS OF 2008 STATE BUDGET CONTAIN ANTI-CRISIS COMPONENT

ARKA
Dec 29, 2008

YEREVAN, December 29. /ARKA/. Armenian Prime Minister Tigran Sargsyan
thinks that the macroeconomic indicators of the 2008 state budget
contained an anti-crisis component.

"Those macroeconomic parameters that have been put in the 2008 budget
and implemented, laid a firm groundwork for warding off the financial
crisis. But our opponents play down this for some reason, omitting
the anti-crisis component", he told reporters.

The premier said that it was clearly mentioned in talks with World
Bank and International Monetary Fund that the implementation of
macroeconomic indicators means the creation of favorable environment
for resisting the impacts of the global crisis.

Sargsyan also said that considerable enlargement of tax inflow added
a great deal to the state budget in 2008.

"We have raised these indicators three times. These are special-purpose
indicators of our tax officers. In fact, we have corrected the budget’s
tax-collection sector – the actual GDP growth was higher than planned.

It means a new cost is being created in the country. Hence, tax inflow
has to intensify. That is why the government was raising control
figures on revenue and reducing expenses simultaneously", he said.

The premier said that expenditure reduction and revenue enlargement
gave the state additional strength and enabled it to resis t the
consequences of the crisis.

Sargsyan said that the government has displayed the same approach in
drawing the 2009 state budget.

"Very low deficit – 0.9% – has been put in the 2009 budget. This is a
very low indicator even compared with developed countries. It means
our country is precipitously growing strong and we can afford to
spend more money without fearing that this can affect macroeconomic
indicators", the PM said.

He said that the government has already started negotiating with its
strategic partners over attracting additional funds for large-scale
projects.

Sargsyan said that signs of deflation are already seen in Armenia.

"Inflation rate in November and December has never been as low as it
was in 2008".

The inflation rate recorded in Armenia in 2008 has come from the
world financial and trade markets.

"We brought 70% percent of the 2008 inflation from the outside, and now
these inflation risks have precipitously reduced thanks to the lowered
prices for bread, wheat and lubricants on world markets", the PM said.

"This creates a favorable environment for expansion policy".

ARMENIAN GOVERNMENT HAILS CONSTRUCTION OF ARMENIA-IRAN RAILWAY IN 2009

ARKA
Dec 29, 2008

YEREVAN, December 29. /ARKA/. It would be preferable for the Armenian
government to launch construction of Armenia-Iran railway in late 2009,
RA Prime Minister Tigran Sargsyan said as he met with local reporters
last week.

Construction will be launched as soon as the project’s feasibility
study is over, the premier said, adding the Asian Development Bank
is involved in the project.

"The private sector has shown a keen interest in the project,
allocating large sums for the feasibility study and technical
preparations," the prime minister said.

Sargsyan assured the journalists the strategically important project
will be implemented by all means, saying the government vows support
to it. The premier did not rule out possible involvement of the private
sector and overseas partners in the railway’s construction.

GLOBAL CRISIS, TENSE POLITICAL SITUATION HIT ARMENIA’S MORTGAGE MARKET

ARKA
Dec 29, 2008

YEREVAN, December 29. /ARKA/. The global financial crisis, the tense
political situation in Armenia and the Georgian war hit the country’s
mortgage market in 2008, said Manuk Vardanyan, chairman of the RA
State Committee of Real Estate Cadastre (SCREC).

"The mortgage market is sensitive and any political process and
global developments influence the mortgage market," Vardanyan said,
adding 2008 was a hard year for Armenia. "The presidential election
in Armenia, the post-election conflict, the global financial crisis
and the war in our neighbor country have hit the local mortgage market
hard," he continued.

According to the SCREC chairman, prices of property alienation deals
hit a ten-year low in 2008. The local mortgage market has seen a
setback since August 2008, with 35% of total transactions being
effected in Yerevan, compared to 45% in the same period last year.

"This does not mean invigoration of mortgage business in Armenia’s
regions," Vardanyan said, pointing out a considerable decline in
property business in Yerevan.

At the same time, the SCREC chairman said Armenia did not see a
decrease in property transactions this year, with 160,000 deals being
made this year, compared to 155,000 in 2007.

ARMENIAN BANKS’ NET PROFIT GROWS BY AMD 7 BILLION TO AMD 27 BILLION

ARKA
Dec 29, 2008

YEREVAN, December 30. /ARKA/. On Monday, Arthur Javadyan, chairman
of the Central Bank of Armenia, summarizing the results of 2008,
said the net profit of Armenian banks grew by AMD 7 billion in 2008
reaching AMD 27 billion.

"In 2008, Armenia’s banking system operated with the profit that grew
by AMD 7 billion, compared with 2007", Javadyan said.

According to the Central Bank’s preliminary data, assets of Armenian
banking system grew 33% to AMD 1.020 trillion.

22 commercial banks with their 367 branches functioned in Armenia as
of September 30, 2008.

Armenian banks’ aggregate assets amounted to AMD 954.1 billion,
total capital AMD 214.9 billion and liabilities AMD 739.2 billion by
late September.

Armenian banking system’s assets makes 27% of GDP.

The crediting of the economy reached AMDF 617.5 by late 2008 billion
against AMD 434.5 billion earlier this year. Of them, AMD 172.5
billion were consumer credits and AMD 81 billion mortgage loans. ($1=
AMD 308.01).

From: Emil Lazarian | Ararat NewsPress

7,000 CASH REGISTERS INSTALLED IN TRADE CENTERS OF ARMENIA BY DEC 1

ARKA
Dec 30, 2008

YEREVAN, December 30. /ARKA/. About 7,000 network cash registers were
installed in trade centers of Armenia as of December 1, Chairman of
State Revenues Committee Gagik Khachatryan told a press conference
Monday.

Specialists of the Committee helps organizations get cash registers
registered in territorial tax inspectorates, Khachatryan said.

Currently works are carried out to develop software for the network
of cash registers, he said.

He also pointed out that an unprecedented mechanism of encouraging
the public in introduction of cash registers is currently used in
Armenia. In 2009, a drawing will be held on cash receipts given to
the population.

The cash register installation that lasted a couple of years is
finally solved, the Chairman said.

On August 21, Armenian Parliament amended the country’s law about trade
and services that provides amendments also to the law cash registers.

The amendments bind trade centers with area of 7 square meters in
Yerevan and 10 square meters in other settlements to install cash
registered. On September 1, a requirement was put also for fairs to
install cash registers.

This raised discontent among businessmen.

GARIK GRIGORYAN

Azat Artsakh Daily
29 Dec 08
Republic of Nagorno Karabakh [NKR

Chairman of the NKR National Assembly Standing Committee on State and
Legal Affairs Lifting restrictions of presidential term in Azerbaijan
is sad and arouses serious concerns "The fact of the voluntary-forced
approval of the imposed from above idea on lifting the restrictions
of presidential term in Azerbaijan is sad and arouses serious concerns.

The Azerbaijani president has not yet pronounced his "authoritative"
word concerning the constitutional changes: neither positive,
nor negative, which brings a certain intrigue in the process. A
question arises in this connection: do the Azerbaijani people need
a constitution in general, if the country is ruled by a lifelong
"elected" president, who will reserve the right to form the government
solely and personally appoint the deputies of the Milli Majlis and its
speaker? Where does Azerbaijan "stride to": the bright future or the
gloomy Middle Ages? It’s regrettable that some European structures,
and not only them, who have undertaken the role of ardent protectors of
human rights and freedoms, consider it the internal issue of Azerbaijan
exclusively and keep on following the ambiguous standards and their own
mercenary interests. The political and cultural élite of Azerbaijan
and the intelligentsia representatives think that th e country will not
develop dynamically without Ilham Aliyev’s wise leadership. Moreover,
according to them, it’s impossible to have another similar leader,
as he is unique and irreplaceable.

However, there are some people in Azerbaijan who don’t like the idea
of Aliyev’s absolute rule. The Baku Zerkalo paper writes:"There is an
impression that the idea has been approved at the highest level and is
already a decided matter. The main index of this is the involvement
of the heavy artillery – our intelligentsia in this affair. However,
despite the statements of those supporting the realization of this
idea, they can’t hide, and some even over-emphasize that we adjust
the constitution to a concrete person…" Some Azerbaijani deputies
gamble "the geopolitical situation of Azerbaijan", "the existence of
the unsettled Nagorno Karabakh conflict" that, allegedly "demand the
expansion of the president’s power". They have even stated that the
ban on the president’s right to be elected more than twice contradicts
the principles of the democratic elections. In short, there is a direct
evidence of the law manipulation in accordance with the conjuncture.

It is not ruled out that this unprecedented political show will have a
"sensational" finale, and president of Azerbaijan Ilham Aliyev will
appear before his nation as the number one democrat and the follower
of the European values".

–Boundary_(ID_us0KaZMEIj1iX4P2DVxZ eA)–

From: Emil Lazarian | Ararat NewsPress

TURKISH OPPOSITION DEMANDS TO TACKLE ARMENIAN TO JOIN EUROVISION CONTEST WITH SO-CALLED "GENOCIDE" SONG

Azeri Press Agency
Dec 29 2008
Azerbaijan

Ankara-APA. Armenian-American rock band "System of a Down" will join
the Eurovision 2009 Song Contest in Moscow in May. Turkish opposition
concerns about this decision, APA reports quoting the Turkish news
agencies. Member of the Parliament from the Republican People’s Party
(CHP) Akif Ekici addressed Prime Minister Receb Tayib Erdogan reminding
that this group is going to perform a song about the so-called
"Armenian genocide". "This group prints in its concert tickets "No
entry for dogs and Turks". Their song "Holy Mountains" offends the
Turkish people and their leader Ataturk". The lawmaker asked the Prime
Minister what measures would be taken for prevention of this group to
join the Eurovision contest with this song. "Were Armenia and European
Broadcasting Union addressed on this issue? What will happen if this
group wins the contest with its song on so-called "genocide"? Would
the world recognize "genocide" in this case, it wouldn’t?"

The Eurovision bans to perform political songs, but tactful performers
can make political messages through different subtleties.

From: Emil Lazarian | Ararat NewsPress

CHINA, ARMENIA PLEDGE TO ENHANCE CO-OP BETWEEN MILITARIES

Trend News Agency
Dec 29 2008
Azerbaijan

Chinese and Armenian defence ministers held talks Monday, pledging
to increase exchanges and cooperation between the two militaries,
reported Xinhua.

Chinese Defence Minister Liang Guanglie told his Armenian counterpart,
Seyran Oganyan, that the two nations enjoyed sound momentum in
high level visits, increasing mutual trust in politics and fruitful
cooperation in various fields.

Liang, also a state councillor, said strengthening military cooperation
played important role for advancing Sino-Armenian bilateral relations.

Guo Boxiong, vice chairman of the Central Military Commission, also
met with Oganyan Monday.

Applauding Armenia’s adherence to the one-China policy and its support
to China on the issues of Taiwan and Tibet, Guo said China valued
the relations with Armenia.

Regarding China as a good friend and partner as well, Oganyan expressed
his appreciation of China’s assistance to Armenia’s army building
and pledged to work with China to increase bilateral exchanges and
cooperation.

CHINA, ARMENIA PLEDGE TO ENHANCE CO-OP BETWEEN MILITARIES

Xinhua

People’s Daily, China
Dec 29 2008
China

BEIJING, Dec. 29 (Xinhua) — Chinese and Armenian defense ministers
held talks Monday, pledging to increase exchanges and cooperation
between the two militaries.

Chinese Defense Minister Liang Guanglie told his Armenian counterpart,
Seyran Oganyan, that the two nations enjoyed sound momentum in
high level visits, increasing mutual trust in politics and fruitful
cooperation in various fields.

Liang, also a state councilor, said strengthening military cooperation
played important role for advancing Sino-Armenian bilateral relations.

Guo Boxiong, vice chairman of the Central Military Commission, also
met with Oganyan Monday.

Applauding Armenia’s adherence to the one-China policy and its support
to China on the issues of Taiwan and Tibet, Guo said China valued
the relations with Armenia.

Regarding China as a good friend and partner as well, Oganyan expressed
his appreciation of China’s assistance to Armenia’s army building
and pledged to work with China to increase bilateral exchanges and
cooperation.