Month: July 2009

TOTAL LIABILITIES OF ARMENIAN BANKING SYSTEM 2.4% DOWN TO 868 BLN DRAMS IN Q2

ARKA
July 30, 2009

YEREVAN, July 30. /ARKA/. Total liabilities of Armenian banking system
went 21 billion drams or 2.4% down to about 868 billion drams in the
second quarter of 2009.

According to the review of Armenian banks prepared by the Central
Bank of Armenia (CBA), accrued liabilities of individuals grew by
1.5 billion drams or 0.7% to about 203.5 billion drams in the second
quarter of this year with accrued liabilities from legal entities
having increased by 4.7% to a total of 121.3 billion drams.

Liabilities to Armenian government grew by 7.6 billion drams or 36%
to 28.8 billion drams. Liabilities to banks and other financial
organizations decreased 11.7% or by 34.5 billon drams down to 260.2
billion drams in the second quarter of 2009. Of this, 5.1 billion
drams were correspondent accounts of other banks with their balance
reduced by 48.6% or 4.9 billion drams over the period.

According to the Central Bank, call liabilities totaled 210.2 billion
drams by the end of June 2009 that is a 1.2% reduction over the period.

Other liabilities of Armenian banks grew by 4.3% up to 35.7 billion
drams in the reporting period.

Accrued interest went 0.01% up to 8.4 billion drams as compared with
the beginning of the quarter.

According to the preliminary information based on interim financial
reports of banks for the second quarter, the following were the
five top banks in terms of liabilities in the first half of 2009 –
HSBC Bank Armenia (118.8 billion drams), ACBA-Credit Agricole Bank
(115.2 bn drams), Ardshininvestbank (88.1 bn drams), Bank VTB (Armenia)
(76.1 bn drams) and Ameriabank (65.4 bn drams).

There were 22 banks and 383 branches operating in Armenia on June 30
this year. ($1=367.15 drams).

ACTUAL REDUCTION OF ADDED VALUE IN CONSTRUCTION OF ARMENIA TOWARDS END OF 2009 TO BE 40-50% – CENTRAL BANK

ARKA
July 30, 2009

YEREVAN, July 30. /ARKA/. The Central Bank of Armenia has revised
the forecast for such industries as construction and services,
which constitute a substantial share of the GDP, and lowered its
expectations.

Consequently, the actual reduction of added value in construction in
Armenia by the end of 2009 will be 40-50%.

As it was reported in the Program of the Monetary Policy of the CBA
in the 3rd quarter of 2009, this was going to happen despite the
gradual reduction in the rate of decline in construction conditioned
by financial support from the government.

In the first half of 2010, the downturn in the construction will
continue.

However, by the end of half-year there will be a positive growth
indicator.

The revision of the forecast is due to the expected reduction in
capital flows and incomes, as well as a significant decline in
residential construction.

According to CBA’s forecast, a zero real growth of added value is
expected in 2009.

However, in the first half of 2010, it is expected to restore the
services, with a real growth of 1-4%.

The CBA states that such predictions depend on specifying the
forecasted indicators of private and public consumption, which
affect both the volume of turnover and other volumes of the services
provided.

ARMENIAN CENTRAL BANK PREDICTS 3.5% INFLATION FOR LATE 2009

ARKA
July 30, 2009

YEREVAN, July 30. /ARKA/. The Central Bank of Armenia predicts 3.5%
inflation for late 2009.

In its monetary policy program for the 3rd Q of 2009, the Central Bank
also forecast 2.7% inflation by the end of the second quarter 2010.

According to the Central Bank’s forecast for 12 months, the inflation
will mainly be caused by the large adverse gap on domestic demand.

But the bank also expects the cabinet’s bailout measures and the
Central Bank’s expansionary policy are expected to produce certain
effect, and the national economy will start rallying at the end of
that period.

Under these circumstances, the current inflation pressures will
gradually be mitigating, and inflation will remain stuck to the
planned 4±1.5% throughout 12 months.

Besides, the Central Bank doesn’t rule out risks of inflation decrease
or increase, depending on the government’s bailout steps, recovery of
the world economy and implementation of large-scale regional transport
and energy programs.

To speed up the recovery of the economy, the Central Bank of Armenia
will continue pursuing expansionary policy and driving refinancing
rate down.

Along with that, the Central Bank finds it important to ensure
maximally smooth utilization of the cash being pumped in the economy.

At the second quarter of 2009, 4.5% inflation was recorded in Armenia,
0Aand the year-on-year inflation reached 3.6%, after rising 2.6
percentage points, compared with the previous quarter.

Natural inflation rate was recorded at 2.1% at the 2nd Q of 2009,
and year-on-year natural inflation – 3.4% – remained almost unchanged,
compared with the previous quarter.

THE IT DEVELOPMENT SUPPORT COUNCIL (ITDSC) MET, PRESIDED AT BY COUNCIL CHAIR, RA PRIME MINISTER TIGRAN SARGSYAN

Wed nesday, 29 July 2009

The council reviewed the status of those assignments given at the
previous meeting as reported by RA Minister of Economy Nerces Yeritzyan
and working group supervisors.

The meeting discussed ways for facilitating the process of business
registration by newly established IT companies. In this connection,
the "one stop shop" scheme was said to be in need of further
improvement. The council has noted that the IT sector managers’ annual
contest organizing State commission is working out selection criteria
for the contest. Information Technology Fund President G. Chugasizyan
advised that the ITF has developed a concept note and a detailed action
plan for electronic content. The council took note that efforts are
underway towards introducing a system of e-government, inclusive of
endeavors towards priority action plan finalization. The Prime Minister
instructed to have this question included in the next meeting’s agenda.

A provisional solution was given to the decision on modifying paragraph
3, article 9 of the RA law on defense. The corresponding drafts as
forwarded to the ministries of defense, transport and communication
were said to be under discussion now.

The meeting has similarly reviewed the package on improvement of
customs services. In the frame of this package, IT Enterprise Union
Director K. Vardanyan outlined the list of priority issues over which
talks are underway with the Customs Committee. Prime Minister Tigran
Sargsyan suggested setting up a corresponding task force to enhance
cooperation efficiency.

RA Minister of Education and Science A. Ashotyan reported that in line
with the law on education, facilities are being designed for different
types of academic study. A preliminary draft will be completed by
this September for submission to the government following discussions
involving stakeholders.

Next, the council looked at the status of the One PC for Each
Household program. A pilot project is scheduled for implementation
in a number of urban settlements under which households will get
software in addition to hardware. A corresponding task force will
continue studying the market.

The agenda comprised discussion of the program on the teaching of
computer skills in general schools. Tigran Sargsyan told the Minister
of Education and Science to have a program designed on mandatory
computer teaching procedure for high schools, as well as to monitor
the process of student certification.

Concerning the assignments of the previous meeting, the meeting took
note of the progress made in a number of them, with the balance being
in process of discussion. The head of government stressed the need
for continued talks and consistency in pursuit o f these tasks.

In conclusion, the council discussed internet management- and
infrastructure development-related issues. It was decided that all
relevant proposals will be heard at the next council meeting.

Minister of Economy Nerces Yeritzyan advised that an international
forum on the formation of electronic society is scheduled for this
autumn aimed at promoting the IT sector and bringing it closer to the
public-at-large in Armenia. The National Academy of Sciences will host
a symposium in the framework of the Month of Information Technologies.

RA PRIME MINISTER TIGRAN SARGSYAN HAD A BREAKFAST-MEETING WITH PRESIDENT OF THE REPUBLIC OF SERBIA BORIS TADICH AT THE VENUE OF HIS RESIDENCE IN YEREVAN

Wedn esday, 29 July 2009

A bilateral relationship-related agenda has been discussed. Speaking
about the need for strengthening government-to-government ties,
the parties stressed the importance of direct contacts between
decision-makers and business circles. Agriculture and the farm produce
processing sector were said to be among the most prospective areas
for cooperation. The interlocutors agreed in that the centuries-old
Armenian-Serbian friendship and boosted cultural exchanges may provide
a sound basis for upgrading relations between the two countries.

The meeting was marked by an atmosphere of warmth and friendship.

THE FIRST MEETING OF THE PUBLIC COUNCIL

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29.0 7.09

On the 29th of July, 2009 in the administrative complex of the RA
MoD the first meeting of the Public Council under the Minister of
Defence took place. Greeting those who were present and touching upon
the goals and issues of creating the council, Seyran Ohanyan stated
that due to the council’s activities the relation between the public
and the army will become stronger; the involvement of the public in
defence enforcement will be assured, while promoting the cooperation
between the MoD, NGOs and RA citizens.

Then the Minister of Defence presented the council members some details
related to military service and daily routine. During the meeting
the participants came up with suggestions, and matters related to the
coming activities and prospects of the council were discussed. Gegham
Harutyunyan was elected president of the council.

From: Emil Lazarian | Ararat NewsPress

TURKEY HAS TO CHOSE BETWEEN ARMENIA AND AZERBAIJAN

/PanARMENIAN.Net/
30.07.2009 15:52 GMT+04:00

/PanARMENIAN.Net/ Armenia is interested in RA-Turkish rapprochement
and opening of borders between the countries, no longer wishing to
remain a closed country, Ivan Safranchuk , representative of Moscow
State Institute of International Relations (MGIMO), Chief Editor of
Great Game periodical told a PanARMENIAN.Net reporter.

According to him, Turkey is faced with a choice. "Recently Turkey
emerged as one of the important players in the region, with
USA and EU’s attention focused on itself. Besides, the state is
planning o establish business relations with Middle East," Russian
expert noted. "Ankara is playing at a political game without making
geopolitical or economical choice in favor of a certain country. Turkey
wants to have it all without giving anything in return."

"Opening of borders is not an issue to be resolved right now. Still,
it might happen. Everything is possible," the Russian expert said,
emphasizing that factors created by other players, specifically
Azerbaijan, are playing a significant role in RA-Turkish rapprochement
issue.

RA President Serzh Sargsyan stated at a joint news conference with
Serbian President Boris Tadic, he’ll visit Turkey to attend return
football match between RA and Turkey’s teams only upon opening of
Armenian-Turkish border or on the eve of Turkey’s lifting Armenian
blockade.

Return match between Turkish And Armenian football team within World
Cup 2010 qualifying games framework will take place on October 14 at
Ataturk stadium in Bursa.

TURKEY WILL NOT UNDERTAKE ANY INITIATIVES UNTIL PROGRESS IS REGISTERED IN NKR ISSUE

/PanARMENIAN.Net/
30.07.2009 16:02 GMT+04:00

/PanARMENIAN.Net/ Armenian President Serzh Sargsyan’s statement that
he would attend the return match between the Armenian and Turkish
football teams only in case the border was open or the sides agree
on unblocking Armenia has a wide influence, Head of Turkish Centre
for International Relations & Strategic Analysis (TURKSAM), Sinan
Ogan told a PanARMENIAN.Net reporter.

"Will Turkey take any other steps after that statement? I don’t
think. I think it is for two reasons.

The first reason: Mr. Sargsyan had invited Abdullah Gul to Yerevan
for the football match and Turkish President Abdullah Gul went
to Yerevan without any precondition. This was a good will step to
solve the problems between two states. I have to underline that this
decision was a "risky decision" for Mr. Gul’s political career. However
Mr. Gul took that risk and went to Yerevan. Now conditions are same,
Mr. Gul invites Mr. Sargsyan for a football match. Therefore Turkey
will never accept any precondition.

The second reason is about Azerbaijan and NKR issue. As you know
a "road map" was signed between Turkey and Armenia which was not
declared to public. The aim of this step was normalization of bilateral
relations. The public response was great both on Turkey and Azerbaijan
sides to this process. Turkish and Azerbaijan publics are against
furthering relations without solving Nogorno Karabakh problem. Justice
and Development Party (AKP) is aware of this reaction. So if Nagorno
Karabakh issue has not progressed until the match, Turkey is not
expected to do any further initiatives," TURKSAM Head concluded.

WHO: THE GLOBAL SWINE FLU EPIDEMIC IS STILL IN ITS EARLY STAGES

/PanARMENIAN.Net/
30.07.2009 16:16 GMT+04:00

/PanARMENIAN.Net/ Keiji Fukuda, WHO’s Assistant Director-General for
Health Security and Environment, said at WHO Geneva meeting that given
the size of the world’s population, the new H1N1 virus is likely to
spread for some time.

WHO earlier estimated that as many as 2 billion people could become
infected over the next two years.

"Even if we have hundreds of thousands of cases or a few millions of
cases … we’re relatively early in the pandemic," Fukuda said in an
interview at WHO’s headquarters in Geneva.

The global health agency stopped asking governments to report new
cases last week, saying the effort was too great now that the disease
has become so widespread in some countries.

ANC REGRETS THAT NKR TRUSTS RA PRESIDENT SERGE SARGSYAN

/PanARMENIAN.Net/
30.07.2009 16:29 GMT+04:00

/PanARMENIAN.Net/ "Since the issue of NKR future is linked to
self-determination, ANC attaches great importance to the position of
Artsakh, but unfortunately, NKR still trust the President of Armenia
Serzh Sargsyan, " David Shahnazaryan , member of Coordinating Council
of Armenian National Congress told a press conference in Yerevan today.