Month: September 2009

WORLD BANK APPROVES CREDIT OF US$ 36.6 MILLION FOR LIFELINE ROAD IMPROVEMENT PROJECT IN ARMENIA

ARKA
Aug 31, 2009

YEREVAN, AUGUST 31, /ARKA/. The World Bank’s Board of Executive
Directors approved August 27 a credit of US$ 36.6 million equivalent
of additional financing for the Lifeline Road Improvement Project
(LRIP-AF) for Armenia, World Bank Armenia Resident Representative
Aristomene Varoudakis told reporters Monday.

He said this project is part of the overall World Bank Group Country
Partnership Strategy (CPS) for 2009-2012 which was approved in
early June.

The International Bank for Reconstruction and Development
(IBRD) Flexible Loan has 25 years of maturity with 10 years grace
period. Mr. Varoudakis said the interest rate is linked with LIBOR
(with 0.75% spread) that will be revised each six months.

Mr. Varoudakis said this project will assist the government of Armenia
in its on-going efforts to drastically improve accessibility of the
country’s main road network for the rural population, create employment
and will also help Armenia mitigate the impacts of the global economic
crisis on the country’s economy and the well-being of its population.

He said the additional financing will further scale-up activities
under the on-going original project to improve the condition of 140
km of roads.

"Over the years, insufficient investment in the rehabilitation and
maintenance of lifeline roads has made the overall road quality poor,
and left some roads difficult to use and others completely impassable.

For example, the inability to bring crops to market in time has
resulted in losses of 40 percent or more, and in some communities up
to 80 percent. The rehabilitation of the road network will therefore
help farmers and small businesses in rural areas bring their products
to market more easily and at a lower cost, reducing the external
shock of the crisis.

The project would also create 800 temporary jobs in rural areas
which have been hard hit by the crisis, and improve access to basic
social services.

The implementation of the civil works will commence in late September
and be completed by the end of the next construction season. The
LRIP-AF has two main components. First, it will support rehabilitation
of approximately 140 km of the lifeline roads, located in seven
regions. In addition, a technical assistance component will help the
Armenian government to modernize and increase the efficiency of how
they design their roads, and to support a road safety audit manual
as well as a "safe village" pilot that could be scaled up to improve
safety standards in other areas. Mr.

Varoudakis said regarding that World Bank has already funded
improvement of 116 km long roads, overall it will fund rehabilitation
of 260 km long rural roads. Since joining the World Bank in 1992 and
IDA in 1993, commitments to Armenia total approximately20US$1, 313,
6 million.

From: Emil Lazarian | Ararat NewsPress

HAYASTAN ALL-ARMENIAN FUND HANDS NEWBORN BABY CARE PACKAGES TO 30 POOR FAMILIES IN TAVUSH

ARKA
Aug 31, 2009

YEREVAN, August 31. /ARKA/. Hayastan All-Armenian Fund handed newborn
baby care packages to 30 poor families in Tavush region of Armenia
in the scope of "Ororots" ("Cradle") program on August 25, the fund
press service reported.

According to the report, the charity action was held owing to about
5,000 euros worth donation of Veideman family from Germany.

The support provided to 1,150 families as from 2002 proves the success
achieved by "Ororots" organization, Advisor to General Director of
Hayastan All-Armenian Fund Aida Khachikyan said. She expressed hope
that some other families will continue the act of kindness and will
help needy children.

Resident of Berd town Gohar Mkhitaryan said that the attention
and support grants the needy families an opportunity to ease their
everyday hardships.

"Ororots" program has been implemented since June 1, 2002. The program
is to help socially vulnerable families of Armenia that have newborn
babies to provide the required care.

ARMENIA EXPO 2009 TO OPEN IN YEREVAN ON SEPTEMBER 4

ARKA
Aug 31, 2009

YEREVAN, August 31. /ARKA/. The ninth universal regional trade and
industrial exhibition ARMENIA EXPO 2009 is to be held in Sport and
Concert Hall after K. Demirchyan in Yerevan on September 4-6.

The forum is organized by LOGOS EXPO Center and the Union of
Manufacturers and Business of Armenia.

LOGOS EXPO Center reports that the forum brings together regional
and branch exhibits revealing the country’s industrial potential. The
exhibition covers practically all industry branches.

ARMENIA EXPO 2009 is a biggest regional exhibition, the report says.

Uniting small exhibits into a biggest industrial exhibition allows
considerably reducing direct and indirect costs for the participants
and the guests and provides a successful marketing opportunity.

Every year the exhibition gives enterprises wide opportunities to
present technologies, systems and components, as well as innovative
solutions for various industry branches.

"For those who value time, it is a real opportunity to find an
advantageous business partner or a foreign investor in a short period
of time, without leaving the country," the report says.

The exhibition is officially supported by Armenian government,
the country’s ministries of economy, transport and communications
and agriculture.

Over 150 local and foreign organizations, companies and associations
from Armenia, Nagorno-Karabakh, Russia, B elarus, Iran, United Arab
Emirates, Germany, Georgia and China.

The area under the exhibition is more than 1,500 square
meters.

0.4% DEFLATION RECORDED IN ARMENIA IN AUGUST AGAINST JULY

ARKA
Aug 31, 2009

YEREVAN, August 31. /ARKA/. 0.4% deflation was recorded in Armenia
in August against July.

Prices for foodstuffs (including alcoholic drinks and tobacco products)
fall 1.3% in the country in August against July, the RA National
Statistical Service reported.

In August against July prices for nonfoods and services grew by 0.3%
and 0.8% respectively.

At the same time, consumer price index was 102% in August as compared
with December 2008.

In August against December 2008 prices for foodstuffs (including
alcoholic drinks and tobacco products) went 3.6% down; prices for
nonfoods and services rose by 9.9% and 8.2% respectively.

Monthly average increase in consumer prices was 0.2% in January-August,
a reduction of 0.3pct as compared to the level of last year (0.5%).

In August this year against August last year, consumer price index was
103.5%: index for foodstuff prices was 99.1%, for nonfoods prices –
104.6% and for service prices 110.5%.

In January-August against the same period of last year the indices
were 102.8%, 99.2%, 102.1% and 110.1% respectively.

The Statistical Service reports that in August against the year 2005
the consumer price index was 120.5%: 15.7% rise was recorded in prices
for foodstuffs (including alcoholic drinks and tobacco products),
15.7% rise was recorded in prices for nonfoods, and service prices
rose by 31.7%.

Acc ording to the statistical information, consumer prices dropped
1.0-0.2% in all cities under study in August against July; the highest
deflation was recorded in Vagharshapat and Talin. Consumer prices
reduced 0.2% in the capital.

Under the state budget, inflation was planned to be within 4% (±1.5%)
by the end of this year.

PRESIDENT OF ARMENIA: I WILL LEAVE FOR TURKEY IF OUR BORDER IS OPEN OR IF WE ARE ON THE THRESHOLD OF IT

ArmInfo
2009-08-31 11:20:00

ArmInfo. "I have stated this twice: I will leave for Turkey on that
football match if our border is open or if we are on the threshold of
it," President of Armenia Serzh Sargsyan says in an interview with BBC
in response to the question what the Armenian party expects from Ankara
to unfreeze the negotiations. "If Turks fulfill our arrangements it
is one thing, and if they fail it is another thing. We have certain
arrangements. And I think it is normal and right when the parties
fulfill their arrangements.

Unfortunately, I have not seen high desire and aspiration
for fulfillment of these arrangements. Our desire is the same
i.e. establishment of relations without preconditions," Serzh Sargsyan
said. Asked if he will leave for Turkey on the return match of the two
countries’ teams, the president said: "You know there are two answers
to this question. To say I will leave or I will not leave would not
be essential. I mean that we can no longer connect the visit of the
football match with our relations with Turkey. Let’s imagine at least
two versions. Let’s suppose that we are freezing our talks with Turkey
and I visit Turkey. And the second version: we continue the talks
but I do not leave for Turkey. Which version is more important? If
you ask your question in the context of our negotiations with Turkey
and the possible results till October, my answer is such. "

The football match Armenia vs. Turkey is scheduled for October 14
in Turkey.

Last year President of Turkey visited Armenia to watch the first game
of the two teams.

From: Emil Lazarian | Ararat NewsPress

USA HOPES FOR TANGIBLE RESULT IN NORMALIZATION OF ARMENIAN-TURKISH RELATIONS SOON: MARIE L. YOVANOVITCH

ArmInfo
2009-08-31 14:55:00

ArmInfo. U.S. President Barack Obama in his traditional speech on April
24 was very clear in his view regarding this issue (incidents of 1915
in Ottoman Turkey) as well as on ways to move this process forward,
said U.S. Ambassador to Armenia Marie L. Yovanovitch, commenting at
the request of ArmInfo on the process of recognition of the Armenian
Genocide by the USA .

She said that very important negotiations are underway between Armenia
and Turkey and the USA supports this process as well as opening of
the border.

The Ambassador added that rapprochement Armenia and Turkey is important
both to Turkey and Armenia as well as to the region. The United States
hope for tangible result in this process soon, Ambassador said.

PARLIAMENTARY SPEAKER OF NKR: WE HAVE SUCCESSFULLY DEVELOPED ALL ATTRIBUTES OF SOVEREIGN STATE OVER 18 YEARS OF INDEPENDENCE

ArmInfo
2009-08-31 11:36:00

ArmInfo. "Declaration of the Nagorny Karabakh Republic was a logical
end and a start for all the following legal steps towards sovereignty
of our country," NKR Parliamentary Speaker Ashot Ghulyan declared,
ArmInfo correspondent to Stepanakert reported.

He mentioned that the NKR Declaration contained all the parameters
of the future independent state from the very beginning. "I believe
that we have successfully developed all the parameters of a sovereign
state both in legal field and in government building over the 18 years
of independence," he said. The NKR celebrate the 18th anniversary of
Independence on September 2.

PRESIDENT OF ARMENIA: WE MUST LOOK FORWARD BUT WE HAVE NO RIGHT TO FORGET OUR PAST

ArmInfo
2009-08-31 11:25:00

ArmInfo. We do not consider recognition of Genocide as precondition
to establishment of relations with Turkey, President of Armenia Serzh
Sargsyan says in an interview with BBC.

Asked if Armenia is ready for concessions in the issue of the
events of 1915 and their recognition by Turkey as Genocide, the
president said: "It is very important, indeed. It is important for
our nation, for Turkey and for the world. It is important to restore
historical justice. It is important for our nations to establish
normal relations. And after all it is important to prevent that in
future. Nevertheless, we do not consider recognition of the genocide
as a precondition to establishment of relations." In response to the
specifying question if a compromise is possible, S. Sargsyan said: "No.

It must not be considered as compromise. It is not the very case
for speaking of a compromise. We say the following: yes, there was
genocide and irrespective of whether Turkey recognizes that or not,
this fact is recognized by all the genocide specialists in the world
and by many-many countries. In the present condition, we do not
consider it as a precondition to establishing relations with Turks. "

In response to the following comparison that driving a car one must
follow the traffic not forgetting about the side mirror, S. Sargsyan
said: "Yes. I understand what this means. This means that we must
look forward but we have no right to forget our past."

BANK ACBA-CREDIT AGRICOLE AND AMERICAN EXPRESS SIGN A COOPERATION AGREEMENT

ArmInfo
2009-08-31 17:47:00

ArmInfo. Bank ACBA-Credit Agricole and American Express have signed a
cooperation agreement, reports the press service of Bank ACBA-Credit
Agricole.

The bank will be the first and exclusive representative of American
Express in Armenia.

By the end of this year the bank will offer American Express
cards. Today such cards are accepted by just 24 trade and service
organizations on the basis of direct contracts. ACBA-Credit Agricole
is planning to involve more entities in this network and to issue
American Express cards and travellers checks.

ACBA-Credit Agricole is the leader of Armenia’s plastic card market:
almost 82,000 ArCa and Visa cards, 92 bancomats, 700 POS-terminals.

The shareholders of the bank are Credit Agricole – 16%, SJSC Sacam
International – 12.44%, 10 regional agricultural cooperation unions
and one individual (resident of Armenia).

BANK VTB (ARMENIA) INTRODUCES VTB-CHILDHOOD DEPOSIT

ArmInfo
2009-08-31 17:45:00

ArmInfo. Sept 1 2009 Bank VTB (Armenia) will introduce VTB-Childhood
deposit, says Director General-Chairman of the Directorate of Bank VTB
(Armenia) Valery Ovsyannikov.

Ovsyannikov hopes that this product will become popular in Armenia
as savings for education is one of the most urgent problems for
the moment.

"This is be an opportunity for parents to save money they will later
be able to spend on the ducation of their children," he said.

Head of the Retail Business Development Department of Bank VTB
(Armenia) Hayk Shekyan said that the interest on AMD deposit will
be 9%, on USD deposit – 7%, on EUR deposit – 3%. The interest will
depend on the size of the deposit.

From: Emil Lazarian | Ararat NewsPress