Armenian Defence Minister To Be Replaced

ARMENIAN DEFENCE MINISTER TO BE REPLACED

Haykakan Zhamanak
Dec 4 2008
Armenia

Armenian Defence Minister Seyran Ohanyan will be replaced ,
pro-opposition Haykakan Zhamanak has reported, quoting its unnamed
sources in the government.

The chief of the Armenian General Staff, Col-Gen Yuriy Khachaturov,
will become defence minister contrary to a desire of some people to
see former president Robert Kocharyan in this post, the report said.

The report speculates that Defence Minister Ohanyan will go abroad
for a medical treatment and would not get back to his job, the report
concluded.

RA President To Attend Alexy II Funeral

RA PRESIDENT TO ATTEND ALEXY II FUNERAL

PanARMENIAN.Net
08.12.2008 18:16 GMT+04:00

/PanARMENIAN.Net/ Armenian President Serzh Sargsyan departed for the
Russian capital Monday to attend the funeral of Patriarch of Moscow
and All Russia Alexy II, who died at the age of 79 after a lingering
heart ailment.

Catholicos of All Armenians Garegin II will also be present at the
mourning ceremony, the RA leader’s press office told

EBRD Boosts Operations Of ProCredit Bank In Armenia

EBRD BOOSTS OPERATIONS OF PROCREDIT BANK IN ARMENIA

armradio.am
09.12.2008 15:38

The European Bank for Reconstruction and Development is providing
ProCredit Bank in Armenia with USD 7 million to further boost its
on-lending to micro and small enterprises (MSEs). The loan will
consist of two tranches of USD 2 million and USD 5 million.

The loan will help ProCredit Bank in Armenia to continue its financing
programme which aims to reach out to small and medium-sized businesses.

Chikako Kuno, Director of the EBRD’s Group for Small Business, said
that micro and small businesses are critical for economic development
and increasing employment opportunities, yet they often lack access
to finance.

This latest loan directly supports this dynamic sector in Armenia. "The
role entrepreneurs play in promoting the transition towards a market
economy cannot be overstated, and that is why we pay so much attention
to this sector", she added.

Bertolt Hertzfeldt, Executive Director of ProCredit Bank in Armenia:
"The increasing diversification of our funding base in general
highlights the growing maturity of the bank. The additional financing
will help us to extend our outreach among small businesses and will
support their development."

Assisting MSE sector is in line with EBRD’s strategy for Armenia. EBRD
is the largest single investor in Armenia having invested some EUR
202 million in 52 projects20in all major sectors of the economy. The
country is part of the Early Transition Countries Initiative, launched
in April 2004, which uses a streamlined approach to financing to
mobilise more investment and encourage economic reform.

BEIRUT: $50,000 From U.S. To Armenian Sanatorium In Azounieh

$50,000 FROM U.S. TO ARMENIAN SANATORIUM IN AZOUNIEH

Naharnet
Dec 6 2008
Lebanon

USAID/Lebanon Mission Director Denise Herbol presented $50,000 to the
Armenian Sanatorium in the village of Azounieh in the Aley district,
the U.S. embassy said in a statement on Friday.

"USAID’s assistance will allow the center to procure furniture for
the elderly section," it said.

The Armenian Sanatorium, which was established in 1937, provides high
quality and low cost geriatrics and pulmonary disease treatment for
135 elderly persons per year.

Patients come from economically disadvantaged families mainly from
the Armenian community and from villages near Azounieh. The non-profit
center currently employs 60 persons.

Project Of NKR State Budget 2009 Was Submitted To Parliament

PROJECT OF NKR STATE BUDGET 2009 WAS SUBMITTED TO PARLIAMENT

NKR Government Information and
Public Relations Department
December 27, 2008

Today, the NKR Government submitted the project of the State
Budget 2009 of the Republic to the joint session of the NKR
National Assembly’s permanent commissions. The main data included
in the document were announced by the NKR Deputy Minister of Finance
M.Hakobjanyan. It was noted that in 2009 the incomes and expenses are
anticipated to form correspondingly 54 mlrd 52 mln 14.4 thousand and
58 mlrd 542 mln 100 thousand drams. The Budget deficit is anticipated
to form a sum of 4 mlrd 490 mln 85.6 thousand drams.

During the session the NKR Prime Minister delivered a speech,
introduced a number of macro indices and touched upon the pivotal
references holding a place in the financial project.

The NKR Prime Minister underlined that according to the middle-term
expense programme in 2008 the GDP should have formed 87 mlrd drams,
today it is expected to form 86.1 mlrd drams, which has increased
by 14.9 percent against the index of 2007 in case of 5.9 percent of
deflator. According to the middle-term expense programme 103 mlrd
drams and according to the State Budget project equal to 102.1 mlrd
drams was planned for 2009, which corresponds to an increase of 14
percent under the conditions of 4 percent of deflatinn. The average
annual real growth of 14 percent anticipated by the NKR Government
activity’s programme will be retained as well under these economically
hard conditions. The rates of growth will be retained, first of all,
due to agriculture, construction services and other spheres. In 2007
the GDP per head formed 1489 USA dollars, in 2008 it will form 2023,
and in 2009- 2400 dollars. In 2007 the State Budget own incomes against
the GDP formed 20.6 percent, which corresponds to 14.5 mlrd drams,
in 2008 it formed 21.1 percent, corresponding to 18.1 mlrd drams, in
2009 it will form 20.5 percent, correspondingly 20.9 mlrd drams. For
2009 the tax revenues are planned with a decrease of 1.8 mlrd drams
and the expenses with that of 2.3 mlrd drams, as compared with
the middle-term expense programme, which is stipulated by the "Base
Metals", the greatest tax-payer company, and tax payment decrease. In
2007 the tax payments of this company formed more than 40 percent
of the receipts recruited by the State Budget, in 2008 they will
form 20 percent and in 2009 up to 10 percent. Without "Base Metals"
the tax receipts of 2008 will increase by 50 percent against 2007.

In concern with expenses the NKR Prime Minister noted that according
to the Budget project of 2009 the factual expenses will increase by
6.5 mlrd drams in comparison with 2008 taking into account as well
the 600 mln drams’ deficit of receipts from capital services. In 2009
the increase of the salary fund will be equal to 3.2 mlrd drams and it
will form 16.3 mlrd drams. The expenses in the social sphere (pensions,
allowances, indemnities, etc) will increase by 2.2 mlrd drams and will
be equal to a sum of 15.9 mlrd drams. The grants rendered to Community
Budgets will increase by 526 mln drams and will form 7.62 mlrd drams.

Subsidies allotted to community budgets will increase by 526 mn
drams and will form 7.62 mlrd drams. Means rendered to the sphere of
agriculture will increase by 900 mln drams, which will be used for
realization of different agricultural state programmes and in tote
will form 2.35 mlrd drams, credit programmes excluding.

"I want, in particular, note that allotment of 340 mln drams assigned
for protection of monuments and that of 150 mln drams for formation
of the state fisc, by the way, was envisaged for the fist time,
regardless of the fact that, within the year additional means for
forming the state exchequers will also be allotted..

It is foreseen to assign 9.3 mlrd drams, or 1.8 mlrd drams more, to the
sphere of education, from which 6.85 mlrd drams will be destined for
salaries (42 percent of total salaries), which is by 1.45 mlrd drams
more than in 2008. Sums assigned to the sphere of higher education
will increase by 183 mln drams.

According to the State Budget 2009 capital investments will form 12
mlrd drams, which is 1.2 mlrd drams less in comparison with 2008.

The Prime Minister announced that a hypothecary fund is foreseen to be
founded, which will finance more than 3 mlrd drams for implementation
of programmes by securing the process. Moreover, about 3 mlrd drams
of bank resources are foreseen to draw in for realization of capital
construction programmes at state guarantee, as well as 300 mln drams
of draw in means – for supply. "We shall issue governmental bonds
at the rate of 1 mlrd drams, which will be aimed at shortening of
budget deficiency,-A.Haroutyunyan noted. He has qualified the State
Budget 2009, both like social and crisis-proof one, which will allow
providing high tempos of economic growth.

"Taking into consideration total volumes of draw in and off-budget
means and guarantees of the Budget, draw in sums, hypothecary market,
assistance envisaged for development of SME, unprecedented sums
assigned to the sphere of agriculture, growth of capital investments
foreseen by the State Budget and the heavy economic situation we shall
manage to record high tempos of economic development satisfying us
by the end of 2009,- the head of the NKR Government stated.

On delivering the speech, the Prime Minister answered deputies’
questions, gave additional clarifications, in particular, with regard
to the NKR fisc, house construction and other issues.

At the session, the Chairman of the NKR National Assembly Ashot
Ghoulyan spoke with his considerations in concern with the State
Budget. He attached importance to active cooperation between
legislative and executive authorities both in adoption of the document
and its implementation activities.

Discussions of the State Budget project with separate commissions,
according to spheres, will continue in the Parliament, within the
next few days.

The document will be finally adopted by the NA by the end of the
current year.

Serzh Sargsyan Grants An Amnesty To Three Convicts On March 1 Case

SERZH SARGSYAN GRANTS AN AMNESTY TO THREE CONVICTS ON MARCH 1 CASE

Noyan Tapan

Dec 8, 2008

YEREVAN, DECEMBER 8, NOYAN TAPAN. Under RA President Serzh Sargsyan’s
December 3 decree, an amnesty was granted to three convicts, Edward
Ashughian, Arman Margarian, and Artur Nazanian. They had been convicted
to 3-3.5 years’ imprisonment for participation in the mass disorders on
March 1 in Yerevan, making resistance to the Police, and carrying out
other violent actions. Samvel Farmanian, RA President’s Spokesperson,
reported in response to Aravot daily’s question. He said that when
making a decision on signing a decree of amnesty the President took
into consideration both the appeals for mercy addressed to him by
the above mentioned convicts and the circumstance of their having no
previous convictions, family and other circumstances.

According to S. Farmanian, the President has always been ready to
consider appeals for mercy. "There are no changes in these appoaches
today, as well," RA President’s Spokesperson said.

http://www.nt.am?shownews=1010319

Stepanakert Must Be Part Of Karabakh Settlement Process – Dashnaktsu

STEPANAKERT MUST BE PART OF KARABAKH SETTLEMENT PROCESS – DASHNAKTSUTYUN

Interfax
Dec 4 2008
Russia

Baku and Yerevan may meet each other halfway at the Karabakh settlement
negotiations, yet Stepanakert must be a party to the settlement
process, the Dashnaktsutyun party, a member of the Armenian ruling
coalition, told Interfax on Thursday.

"The Bureau of the Dashnaktsutyun Armenian Revolutionary Federation
in Lebanon said that a lasting settlement of the Karabakh problem was
possible only through peaceful negotiations involving the Karabakh
side," the party noted.

"As Azerbaijan did not quit its militant rhetoric after the signing
of the Moscow declaration on Karabakh, it is extremely important to
keep the issue on the national agenda as a super important security
goal of Armenia and the entire Armenian community," the party said.

The negotiations must be based on self-determination of the Karabakh
people through the independence referendum of 1991 and the Karabakh
constitution referendum of 2006, the party said.

"Mutual concessions can be only equal and simultaneous and add to
the integral solution," the party said.

The party wants Armenia and Turkey to continue the settlement of
bilateral relations.

"Turkey has not taken a single positive step. On the contrary, it is
trying to use bilateral contacts for the prevention of recognition
of the Armenian genocide in the Ottoman Empire in 1915. In addition,
Ankara conditions relations with Yerevan on a relationship between
Armenia and Azerbaijan," the party said.

Armenia And Russia To Make Joint Efforts To Reduce Consequences Of F

ARMENIA AND RUSSIA TO MAKE JOINT EFFORTS TO REDUCE CONSEQUENCES OF FINANCIAL-ECONOMIC CRISIS

Noyan Tapan

Dec 8, 2008

MOSCOW, DECEMBER 8, NOYAN TAPAN. During his working visit to Moscow
on December 5, the Armenian prime minister Tigran Sargsyan discussed
with his Russian counterpart Vladimir Putin the results and prospects
of economic cooperation of the two countries. On the whole, the sides
positively assessed bilateral economic cooperation. In the words of
V. Putin, there was a stable increase in the commodity turnover between
Armenia and Russia, with a 17% growth being recorded as compared with
2007. The total amount of invetsments made 1.6 billion rubles.

T. Sargsyan restated the Armenian government’s willingness to form a
favorable business environment for about 1,000 Russian enterprises. He
attached great importance to holding discussions with Armenia’s
strategic partner – Russia, especially around the process of reducing
the negative consequences of the global financial and economic crisis
by common efforts.

An agreement was reached on a meeting of the finance ministers of
two countries and detailed discussion of the anticrisis program. The
Russian side’s participation in construction of the new nuclear power
plant and the Armenia-Iran railway was discussed with V. Putin.

According to the RA Government Information and PR Department, in
connection with the death of Patriarch of Moscow and All Russia Alexy
II, the schedule of T. Sargsyan’s working visit to Moscow was changed,
and for that reason the envisaged meeting with Moscow-based Armenian
businessmen was postponed.

http://www.nt.am?shownews=1010307

Armenia: No Answers For March 1 Violence

ARMENIA: NO ANSWERS FOR MARCH 1 VIOLENCE
Marianna Grigoryan

Eurasianet
December 5, 2008
NY

More than nine months after Yerevan’s March 1 post-election clashes,
the Council of Europe and many ordinary Armenians are taking issue
with the official investigation into the violence for being long on
promises and short on results.

Political tensions after Armenia’s February 19 presidential election
this year led to street clashes between opposition protesters and
security forces that left at least 10 people dead and hundreds
wounded. [For details, see the Eurasia Insight archive]. Many
opposition activists and supporters were arrested following the
crackdown; some went into hiding.

In response to opposition claims about political prisoners, the
government has insisted that steps are being taken to expose the
"real culprits" for the violence. An ad hoc parliamentary commission
was set up in June to look into the violence, and trials of suspected
instigators have begun. In October, a group of experts to assist the
investigation was also established.

These steps, however, have done little to assuage international
concerns. For the third time since March 1, the Parliamentary Assembly
of the Council of Europe (PACE) plans to raise Armenia’s compliance
with PACE resolutions for further scrutiny. [For details, see the
Eurasia Insight archive].

"If no changes are registered by the time when the issue of Armenia
is raised at the PACE session in January, it is likely sanctions
will be imposed," Council of Europe Commissioner for Human Rights
Thomas Hammarberg told EurasiaNet at the end of his November 20-22
fact-finding visit to Armenia. "Unless there is a satisfactory
situation, it is not excluded that Armenia will be stripped of its
voting right."

Two earlier resolutions passed by the Strasbourg-based body (#1609 and
#1620) have stressed the need for Armenia to conduct an independent
and unbiased investigation into the March 1 events.

Patience among many Armenians is already running thin for a resolution
to the question of culpability for the bloodshed.

"It’s been already nine months and I want to know who killed my
husband. Why did he die while he had nothing to do with all that and
was simply coming home from work on that damned night?" asked Yerevan
resident Varduhi Gevorgian, whose husband, Grigor Gevorgian, was
reportedly killed while trying to make his way home by foot. According
to his death certificate, Gevorgian died from a gunshot wound to
the forehead.

The lack of answers for deaths such as Gevorgian’s fuels international
concerns.

At a November 22 press conference in Yerevan, Hammarberg hailed
the formation of the Fact-Finding Group of Experts, but expressed
criticism about Armenia’s degree of "democratic progress."

"The information I have gathered has rather disappointed me," said
Hammarberg, who expressed specific concern over the conduct of trials,
interrogation methods, and the practice of keeping people in custody
for months "without sufficient grounds."

"Tear gas cartridges were found in the bodies of three of those
killed and it was those that caused their deaths," Hammarberg said,
speaking through an Armenian interpreter. "Those cartridges were
fired from guns carried by police and the narrow circle of police
that dealt with guns [on that night] is known. I also thought that
it was possible to establish who carried those guns whose cartridges
caused the deaths." Hammarberg stated that he has twice raised the
matter with the general prosecutor’s office, but "they have so far
failed to clarify the issue."

Yerevan translator Levon Baghdasarian believes that the general
uncertainty surrounding the entire investigation makes it far from
credible.

"The investigation body must be independent and unbiased, but it is
not so," Baghdasarian commented. " What unbiased investigation can
we talk about in this case if the sides that were involved in the
events — the police, the prosecutor’s office — are now conducting
the investigation? That is, it turns out that the murder is being
investigated by the murderers."

Arman Musinian, spokesperson for opposition leader Levon Ter-Petrosian,
argued that there is no investigation into the March 1 events as such.

"Their logic is ‘If you hadn’t gathered on March 1, there would
not have been victims. Since you did, then you are to blame,’"
Musinian said.

However, 20-year-old student Hakob Manukian said he trusts the
authorities.

"The authorities found themselves in a rather difficult situation after
the March 1 events and now must do everything with a clear conscience
to keep the public’s trust . . .," said Manukian. "No doubt, steps
are being made in this intricate case, however perhaps it would be
correct if international experts were involved in the investigation
for transparency."

Hammarberg said that the authorities have not made any specific
request for assistance from international experts. "If they make such
a request, we are ready to assist," he added.

Meanwhile, government representatives continue to stress that they
are doing their utmost to conduct the most effective investigation
possible.

"In order to have a complete picture to comment on, the investigation
work needs to be completed," Edward Sharmazanov, a senior lawmaker
from the governing Republican Party of Armenia, said. "But I think
everything is being done for the public at large to have exhaustive
answers to their questions."

The complaints, he added, are normal for a developing democracy.

"Reforms are not carried out within one day, particularly for such
an intricate case as March 1," Sharmazanov said. "We are implementing
reforms not for Hammarberg and his European partners, but for having
a democratic and developed Armenia tomorrow."

BAKU: Azerbaijani, Armenian FMs Contributed To Basic Principles At H

AZERBAIJANI, ARMENIAN FMS CONTRIBUTED TO BASIC PRINCIPLES AT HELSINKI MEETING: OSCE MG CO-CHAIR

Trend
Dec 6 2008
Azerbaijan

Azerbaijan, Baku, 6 Dec / Trend News corr. E.Tariverdiyeva/ In
Helsinki, Azerbaijani and Armenian Foreign Ministers dramatically
contributed to improvement of Basic Principles, OSCE Minsk Group’s
U.S. Co-chair Matthew Bryza said to Trend News on 6 Dec.

Azerbaijani and Armenian Foreign Ministers met in Helsinki on 4
Dec during the annual meeting of the OSCE Ministerial Council with
participation of the Foreign Ministers of OSCE MG co-chairing countries
– Russia, United States and France, and MG intermediaries.

"The discussions in Helsinki between the foreign ministers of Armenia
and Azerbaijan made a meaningful contribution toward improving and the
Basic Principles and sustaining the momentum of recent constructive
meetings between the presidents," said Bryza.

Azerbaijani, Armenian and Russian Presidents signed a declaration
at the end of their meeting in Moscow on 2 November. The Presidents
confirmed their adherence to peace settlement within the Minsk Group
on the basis of Madrid Proposals.

According to Bryza, the discussers did not make any amendments or
other formal changes to the Basic Principles.

"But instead we continued our work to bring together each side’s
philosophical approach," he said.

The conflict between the two countries of the South Caucasus began in
1988 due to Armenian territorial claims against Azerbaijan. Azerbaijan
lost the Nagorno-Karabakh, except of Shusha and Khojali, in December
1991. In 1992-93, Armenian Armed Forces occupied Shusha, Khojali and
Nagorno-Karabakh’s seven surrounding regions. In 1994, Azerbaijan
and Armenia signed a ceasefire agreement at which time the active
hostilities ended. The countries keep on peace negotiating. OSCE
Minsk Group co-chaired by USA, Russia, and France is engaged in peace
settling of the conflict.