Month: April 2010

CONSUMER PRICE GROWTH AMOUNTS TO 0,8% IN MARCH 2010

PanARMENIAN.Net
31.03.2010 19:01 GMT+04:00

/PanARMENIAN.Net/ In March 2010, 0,8% inflation was registered on
Armenian consumer market compared to February; inflation was caused
by 1,2-6,1% price increase for provisions (eggs, fruit, meat foods,
butter, vegetable oil and sugar).

Besides, food products prices (including tobacco and alcoholic
beverages) increased by 0,9%, non-food products prices grew by 0,8%,
and services’ prices – by 0.8%.

Consumer price index comprised 108,8% in March 2010 compared with 2009
results. According to National Statistic Service data, food products
index (including tobacco and alcoholic beverages) comprised 106.3%,
non-food products index totalled 114.3%, index for services – 110.6%.

ARMENIAN WILL BE TUTORED IN CYPRUS UNIVERSITY

PanARMENIAN.Net
31.03.2010 20:52 GMT+04:00

/PanARMENIAN.Net/ Armenian language will be tutored in Cyprus
University starting September 2010.

The resolution was passed in Cyprus Parliament through the efforts
of Cyprus Armenian community and Cyprus parliamentarian of Armenian
decent, Vardges Maghdessian.

As Editor- in- Chief of "Cyprus Armenians" newspaper Simon Aynedjian
told PanARMENIAN.Net reporter, negotiations between Cyprus Armenian
community and state authorities lasted 2 years. "The issues on agenda
were purely organizational. There were no problems related to tutoring
Armenian in the University. Armenians have no problems in Cyprus,"
Simon Aynedjian concluded.

AMERIABANK SEES PROSPECTS OF RAPID GROWTH AT REGIONAL LEVEL

PanARMENIAN.Net
31.03.2010 19:45 GMT+04:00

/PanARMENIAN.Net/ Ameriabank sees prospects of rapid growth at the
regional markets, Artak Hanesyan , Ameriabank chairman of directorate
and director general told a news conference in Yerevan today.

"Speaking of regional markets we mean CIS markets, in particular our
presence in the financial markets of Georgia, Southern Russia and
Ukraine will be discussed: all this issues will be considered at the
strategic level," he said.

According to him, projects in these countries will vary from a bank
acquisition to direct investments in production and energy companies.

A specialized institution Ameria Equity Partners has already been
established with a 20 million USD capital, over time, perhaps in a
year, this figure will change about five times, and all these funds
will be directed to profitable and developing businesses, " he said.

Ameriabank is a corporate investment bank providing investment,
corporate and limited retail banking services in the form of a
comprehensive package of banking solutions. Ameriabank’ strategic
partner is Troika Dialog" group, one of the largest investment banking
companies in Russia.

CONSOLIDATION IN ARMENIA’ BANKING SECTOR IS NATURAL PROCESS

PanARMENIAN.Net
31.03.2010 18:54 GMT+04:00

/PanARMENIAN.Net/ Consolidation of the Armenian banking sector is a
natural process, Cascade Bank executive director Aharon Levonyan said.

"Against a 3 billion market of total banking assets 22 banks mean a
tightened competition, preventing its development," he told a joint
news conference in Yerevan.

According to Artak Hanesyan , Ameriabank chairman of directorate and
director general, this merger could serve a good example for other
financial institutions. The merger is a good opportunity to address
growth issues within 2-3 months instead of projected 1-1.5 year,
he said.

The sole shareholder of the Cascade Bank JSC is the Cascade Capital
Holdings, founded in 2004 by the Cafesjian Family Foundation (CFF)
with the aim to encourage foreign investment in Armenia and the
Caucasus through a group of commercial companies providing financial
services in line with Western standards.

Ameriabank is a corporate investment bank providing investment,
corporate and limited retail banking services in the form of a
comprehensive package of banking solutions. Ameriabank’ strategic
partner is Troika Dialog" group, one of the largest investment banking
companies in Russia.

AMERIABANK, CASCADE BANK TO MERGE IN 2010

ARKA
March 31, 2010

YEREVAN, March 31. /ARKA/. Ameriabank and Cascade Bank will merge
before the end of this year, Artak Hanesyan, director general of
Ameriabank and chairman of the bank’s directorial board, said at a
news conference on Wednesday.

"Our banks’ shareholders sealed merger deal today. Such a merger of
two banks on market conditions is unprecedented in Armenia. This is a
new phenomenon uniting our services, widening the range of our services
and improving these services. Our clients will benefit from this deal."

The aim of this merger is to support Armenia’s financial sector and
create a firm financial platform for post-crisis development.

Hanesyan said that the two banks’ consolidated capital of will
reach $75 million, aggregate assets will total about $400 million,
liabilities $262 million and joint credit portfolio $180 million
after the merger.

"The merged bank will be among three leaders on these indicators,"
he said adding that the calculations have been based on the figures
of late 2009, and indicators of joint development in 2010 haven’t
been taken into account.

Answering the question ARKA News Agency put up to him, Hanesyan said
that joint discussions have resulted in a decision to function under
the name "Ameriabank".

The banker said that the merging is not completed and the shares of
the parties are not decided so far.

Under the agreement, he said, two stages have to be implemented before
the final merger.

"At the first stage, a merger program will be worked out by joint
efforts and all agreements with third parties, including the central
bank and international organizations cooperating with banks, will be
sealed," Hanesyan said adding that after that the second stage would
be launched.

He said that the bank’s strategy may be changed, though the two banks’
strategies and in tune with each other – that is why he find changes
unlikely.

"Changes, if any, can be positive and related to growth, development
and enlargement of joint activity."

Aharon Levonyan, executive director of Cascade Bank, who spoke at
the same news conference, said that the merger would strengthen
competitiveness.

"The merger is aimed at creation of a stronger financial organization,
which will become a serious competitor and one of three leaders among
Armenian banks," he said.

Ameriabank is a corporate bank with integrated investment-banking
and a limited number of retail banking services. The bank board of
directors is headed by Ruben Vardanian. Its CEO is Artak Hanesian.

Ameriabank’s strategic partner is one of the biggest Russian investment
cosmogonies Troika Dialog.

Cascade Bank was established in 2005 after Cascade Capital Holdings
purchased 100 percent shares of Emporiki Bank. It cooperates now with
EBRD in micro-financing project. Millennium Challenges Armenia Fund
has chosen this bank to handle its account as part of a five year
program of assistance to Armenia by the US government.

ARMENIAN MINISTRY OF FINANCE: SOLUTION OF SOCIAL PROBLEMS REMAINS PRIORITY OF THE GOVERNMENT OF ARMENIA

ARKA
March 31, 2010

YEREVAN, March 31. /ARKA/. Solution of social problems and protection
of vulnerable population still remain priority for the Armenian
government, said Tigran Davtyan, Armenian Minister of Finance.

"We consider social sector important despite crisis and difficulties
and economic and socio-economic policies were targeted at the provision
of worthy social protection of population", said Davtyan during the
press conference on Wednesday.

Social problems of population are in the center of attention of
the President and Prime Minister of Armenia and they make special
instructions for the implementation of social measures.

By the decision of Prime Minister of Armenia working group headed
by Minister of Finance was created which submitted the measures for
smoothening negative impact of price increase on the population in
a short period of time.

On March 25 decision was carried out on increasing family benefits
by 15% from May 1 and pensions by 11% from November 1.

Increase of benefits will cover 110 thousand families including
several hundreds of people.

Family benefits will be increased in average by 3.5 thousand drams.

According to calculations additional expenses of population in the
result of gas tariff increase will be 2.4 thousand drams per month.

Increase of pensions will cover 525-530 thousand pensioners. Pensions
will increase by 2.6 thousand drams.

"We speak about 1 million vulnerable population. I think that it is
fair decision", said the Minister.

Additional financial allocations from the budget for increasing family
benefits and pensions will make 6-6.5 billion drams and the government
has enough money for their increase.

>>From April 1, 2010 gas tariff for the subscribers using 10 thousand
cubic meters per month will increase from current 96 drams to 132
drams for 1 cubic meter of gas. Consumers using more than 10 thousand
cubic meters per month will make $243.13 for 1 thousand cubic meters
instead of current $215. ($1 – 398.29 drams).

EXPERT: GAS PRICE RISE IN ARMENIA TO DRIVE INFLATION 0.5% UP

ARKA
March 31, 2010

YEREVAN, March 31. /ARKA/. Gas price rise in Armenia will drive
inflation 0.5% up, Gurgen Martirosyan, chief of Armenian National
Statistical Service’s unit on prices, said Tuesday at a press
conference.

"Gas expenses are included in subsistence. If gas prices go up, but
prices for other services remain unchanged, gas price rise alone will
heighten inflation 0.5%," he said.

But it is not clear yet whether there’ll be any increase in prices
for other services or not.

Martirosyan said that increase in gas and water prices added 1.5%
to the 2009 inflation, which reached 6.5%.

Natural gas price for Armenia’s consumers will be raised 37.5% to
AMD 132 on April 1, 2010, from present AMD 96 per one cubic meter.

Those consumers using more than 10,000 cubic meters of gas monthly
will pay $243.13 per each 1,000 cubic meters instead of $215 presently.

Armen Poghosyan, the chairman of Armenian Association of Gas Consumers,
is convinced that gas price rise will impact prices for other services.

In his opinion, prices for other goods and services can’t remain
pegged after the increase in gas prices.

Poghosyan said that Yerevan Jur Water Company is now reconsidering
water prices.

In late February, Yerevan Jur Water Company appealed to the Public
Services Regulatory Commission proposing to raise water price from
present 181 per one cubic meter to AMD 206.976. ($1 = AMD 396.59).

AMERIABANK AND CASCADE BANK MAKE MERGER DEAL

ArmInfo
31.03.2010

ArmInfo. TDA Holdings and Cascade Capital Holdings, shareholders of
Ameriabank and Cascade Bank, have reached agreement to merge the two
banks. Chairman of the Directorate – Director General of Ameriabank
Artak Hanesyan and Executive Director of Cascade Bank Aharon Levonyan
said in a press conference on Wednesday that this merger is a
ground-breaking deal in the history of the Armenian financial market.

The merged bank will operate in the market under brand Ameriabank. The
shares of the parties in the capital of the merged bank will be made
public later at a press conference by the Ameriabank shareholders.

Artak Hanesyan said that the banks will be merged in two stages; in
particular, the preparation stage is currently underway. The strategic
plan of Ameriabank’s development will undergo quite insignificant
changes after the merger since the strategy and philosophy of the
merged banks are very similar.

It is the 1st market based bank merger that is aimed at consolidation
and empowerment of the RA financial sector, he said. It will create one
of the strongest financial institutions in Armenia with consolidated
capital of USD 75 million, assets of USD 400 million, liabilities of
USD 262 million, loan portfolio of USD 180 million assuring the bank
among top three positions in the domestic market.

The Bank will be further enhanced by the joint team of professionals
that will contribute to the further growth and leadership of the united
Bank in the Armenian financial sector. The merger will increase the
capital of the merged bank that will allow increasing the size of
loans per borrower and the loans to corporate clients.

"This merger is aimed at empowering the two financial structure through
establishment of a very strong financial institution that will be much
more competitive than the two banks were before," A. Levonyan said.

Whereas profits, Ameriabank ensured 1,5 billion drams ($4 million)
net profits for 2009, assuring the index envisaged by the strategic
development plan, Hanesyan said. For his part, A. Levonyan said that
Cascade Bank exceeded 25% the level of actual profits of $1.1 million.

Thanks to this, the bank took the 5th position in the market by ROA.

Earlier in July Cascade Credit UCO and Cascade Bank were merged. Both
the structures are part of Cascade Capital Holding, belonging to the
Cafesjian Family (USA). TDA Holding Limited, the affiliated company
of Troika Dialog, holds 99.99% stake in Ameriabank.

Analysis and Ranking of Armenian Banking System by the Agency of Rating
Marketing Information (ArmInfo) says that merger of Ameriabank and
Cascade (exclusive of the joint development plans) gives Ameriabank
an opportunity to maintain the 1st position by the statutory capital,
to rise to the 2nd position from the 4th position by total capital,
from the 6th position to the 3rd one by assets and liabilities, from
the 7th to the 3rd position by lending and from the 2nd to the 1st
position by lending to the economy sector, as well as to maintain its
2nd position by time deposits. These possible rising of Ameribank’s
positions in the market are based on data of the ranking of commercial
banks for 2009.

From: Emil Lazarian | Ararat NewsPress

ACCORDING TO TURKOLOGIST ARTAK SHAKARIAN, RECEP ERDOGAN’S AND PETROS SHIRINOGLU’S MEETING WAS MERELY A BEAUTIFUL PR ACTION

Noyan Tapan
March 31, 2010

YEREVAN, MARCH 31, NOYAN TAPAN. According to Turkologist Artak
Shakarian, Petros Shirinoglu who is considered the head of Turkey’s
Armenian community is one of Turkish Prime Minister’s close friends,
and their recent meeting was a very beautiful PR action. As the
Turkologist mentioned at a March 31 press conference, R. Erdogan
had a problem of raising his image after his statements made in his
interview to BBC, which were criticized by the international community,
as well as by many Turkish figures.

"That meeting was allegedly organized at P. Shirinoglu’s suggestion.

However indeed they tried to show the whole world that Ankara is in
a dialogue with the Armenian community, they have no problems," A.

Shakarian said. In his words, P. Shirinoglu also declared that it
was he who formerly provided wrong information to the Prime Minister
saying that 170 thousand Armenians live in Turkey.

According to A. Shakarian’s observation, indeed Turkish Armenian
community’s leader is not P. Shirinoglu but the Patriarch. According
to him, Agos newspaper’s late editor Hrant Dink was the informal
leader but after his murder there is no one to take his place. "R.

Erdogan wants to himself create Armenian community’s leader as it is
not beneficial for Turkey if there is someone like H. Dink," A.

Shakarian said.

Speaking about the elections of the Armenian Patriarch of
Constantinople the Turkologist said that there are two candidates,
leader of the Gugark Diocese of Armenian Church Bishop Sepuh Chuljian
and Archbishop Aram Ateshian. According to A. Shakarian, A. Ateshian
enjoys Ankara’s confidence. As to Bishop S. Chuljian, according to
the speaker, there is an opinion that the latter can be a uniting
link in case close Armenian-Turkish relations are established.

CATHOLICOS OF ALL ARMENIANS RECEIVES AMBASSADOR OF CHINA

Noyan Tapan
March 31, 2010

ECHMIADZIN, MARCH 31, NOYAN TAPAN. On March 30, Catholicos of All
Armenians Karekin II received newly appointed Ambassador Extraordinary
and Plenipotentiary of China to Armenia Tian Changchun.

The Patriarch greeting the Ambassador attached importance to close and
friendly contacts established between the two peoples and expressed
the hope that during T. Changchun’s tenure that cooperation will
further strengthen and develop.

According to the Information Services of the Mother See of Holy
Echmiadzin, during the talk the interlocutors also touched upon
the spiritual life of the two peoples, emphasized spiritual life’s
importance in the issue of strengthening moral-spiritual values
in society.