Author: Badalian Vardan

MOODY’S DOWNGRADES ARMENIA’S BOND RATING TO BA3 AND CHANGES OUTLOOK TO NEGATIVE

January 16, 2015 09:44

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Yerevan /Mediamax/. Moody’s Investors Service has today downgraded
Armenia’s issuer and government bond rating to Ba3 from Ba2, and
changed the outlook to negative from stable.

“The key drivers for the downgrade are the following:

1) Armenia’s increased external vulnerability due to declining
remittances from Russia, an uncertain outlook for foreign direct
investment (FDI), an elevated susceptibility to exchange rate
volatility, and expected pressure on foreign exchange (FX) reserves;

2) The country’s impaired growth outlook, compounded by negative growth
spillovers from Russia, weak investment activity, and constraints
on trade with countries outside the Eurasian Economic Union (EEU)
that are expected from Armenia’s recent EEU accession.

In a related action, Moody’s has also lowered the local-currency
bond and deposit ceilings to Ba1 from Baa3, the foreign-currency
bond ceiling to Ba2 from Ba1, as well as the foreign-currency deposit
ceiling to B1 from Ba3. The short-term foreign-currency bond ceiling
and the foreign-currency deposit ceiling remain at NP”, Moody’s
Investors Service press release says.

“The first driver of the downgrade is Armenia’s increased external
vulnerability driven by declining remittances from Russia and risks
to expected FDI inflows. Remittances represent about 15% of GDP, with
over 90% of the total stemming from Russia. Given the sharp recession
expected in Russia, the adverse impact of reduced remittance inflows
on the country’s balance of payments will potentially put pressure
on Armenia’s FX reserves, which were at 4.5 months of import cover
at the end of 2014.

Moreover, Armenia’s position as a significant net international
borrower exposes the currency to elevated depreciation risk.

Approximately 83% of Armenia’s government debt is denominated in
foreign currency, mostly in Special Drawing Rights (SDR) and US
dollars. The Armenian dram’s depreciation of over 15% since November
2014 has the potential to put additional pressure on Armenia’s FX
reserves, which remain subject to intervention by the Central Bank
of Armenia to counteract excessive volatility.

The second driver of the downgrade is pressure on Armenia’s economic
growth prospects, which is compounded by the negative growth spillovers
from Russia’s economic downturn. Moody’s expects that Russia’s GDP
will contract by 5.5% in 2015, weakening Armenia’s economic activity
given its historically strong correlation with Russia’s growth cycle
via remittances and trade channels, with Russia accounting for 23%
of total Armenian exports.

Further exacerbating the slowing dynamics for potential growth —
excepting some more active sectors such as the information technology
industry — are Armenia’s weak investment activity and its slow
productivity growth since the global financial crisis, in addition
to its adverse net migration dynamics’, Moody’s Investors Service
press release says.

“PUNISHMENT- IN ARMENIA”. ACTION NEAR PRESIDENTIAL RESIDENCE

14:01 | January 15,2015 | Social

At this moment dozens of citizens are near the presidential residence
with the posters “Punishment- in Armenia”. They are demanding to
judge Valeri Permyakov, who is charged with the murder of Gyumri
family, according to the RA laws and that he serves his sentence in
the territory of the RA.

In the conversation with “A1+” the action participants highlighted
that they were surprised when Prosecutor General Gevorg Kostanyan
said that it wasn’t important issue where Permyakov would serve
his sentence. They highlight that it is the most important issue by
reminding the case of Hrachya Harutyunyan.

Action participant Davit Manukyan made a call addressing the members of
the youth wing of HHK by reminding the case of Ramil Safarov, when the
flag of Hungary was burnt. But they stress that the same can’t be done
in case of Russia: the RA has been submitted to Russia for a long time.

TURKEY-GERMANY STAND FOR SETTLEMENT OF CONFLICTS IN SOUTH CAUCASUS

IRNA – Islamic Republic News Agency, Iran
Jan 13 2015

Tehran

Turkey and Germany stand for the settlement of conflicts in the South
Caucasus, Turkish Prime Minister Ahmet Davutoglu said during a meeting
with German Chancellor Angela Merkel, TRT Haber TV channel reported
Jan. 12.

According to TREND, he said that the both sides’ priority is to
resolve conflicts in the region, as well as in Iraq and Syria.

The conflict between the two South Caucasus countries began in 1988
when Armenia made territorial claims against Azerbaijan.

As a result of the ensuing war, in 1992 Armenian armed forces occupied
20 percent of Azerbaijan, including the Nagorno-Karabakh region and
seven surrounding districts.

The two countries signed a ceasefire agreement in 1994. The co-chairs
of the OSCE Minsk Group, Russia, France and the US are currently
holding peace negotiations.

GYUMRI KILLING SUSPECT TO NOT BE HANDED OVER TO ARMENIA

Interfax, Russia
January 13, 2015

YEREVAN. Jan 13

Russian serviceman Valery Permyakov, suspected of killing a family
of six in northern Armenia, will not be handed over to Armenian law
enforcement agencies.

“The Armenian and Russian prosecutor general’s offices have discussed
details of the criminal inquiry into the Gyumri killing, saying that
all those guilty of this tragic incident must be punished to the
full effect of the law,” the press service of the Armenian Prosecutor
General’s Office told Interfax on Tuesday.

The suspect is a Russian citizen and is under Russian jurisdiction,
“therefore his handover to the Armenian law enforcement agencies
is not being discussed in accordance with a ban on Russian citizen
handovers to foreign countries, stipulated in Point 1 of Article 61
of the Russian Constitution. The same ban is documented in Article
30.1 of the Armenian Constitution. No Armenian citizens have ever been
handed over to a foreign country in accordance with this law,” it said.

The crime is being investigated by Armenian and Russian law enforcement
services with active legal cooperation, the press service said.

“Armenia will insist that all those guilty of the tragic incident be
brought to justice,” it said.

A family of six, including a two year-old child, were killed in Gyumri
on January 12. A six-month old baby was hospitalized in a critical
condition. The suspect, a soldier at Russia’s 102nd military base
Valery Permyakov, has been detained.

Deputy head of the Armenian Police Unan Pogosian said on Tuesday
that Permyakov had confessed to having committed the crime. However,
motives for the killing remain unknown.

UN PROGRAMME DE L’AMAA FOURNIT DES COUVRE-CHEFS ET DES COUVERTURES POUR LES NOUVEAU-NES EN ARMENIE

ARMENIE

En 2013, Betty Cherkezian et Nancy Burdman du New Jersey, ont eu
l’idee de “cousue avec amour,” un programme pour fournir aux enfants
nes en Armenie des couvre-chefs et des couvertures indispensables.

L’Association Missionnaire Armenienne d’Amerique (AMAA) a aime l’idee
et a adopte le programme dans le cadre de ses efforts de secours
en Armenie.

Plus de 40 000 bebes naissent en Armenie chaque annee, seuls quelques
hôpitaux armeniens distribuent des chapeaux et des couvertures pour
les nouveau-nes et aucun dans les petites villes et villages.

Conscient de cette necessite, “cousue avec amour” s’efforce de fournir
des chapeaux et des couvertures pour bebes aux nouveau-nes dans
les maternites dans toute l’Armenie. Pour atteindre cet objectif,
“cousue avec amour” a tendu la main aux communautes armeniennes
aux Etats-Unis et a recu un soutien des bailleurs de fonds et de
tricoteuses qui souhaitent participer a cette cause.

Les couvertures doivent avoir un minimum de 30 pouces par 30 pouces
de taille. Les chapeaux des nouveau-nes doivent etre compris entre 9
pouces a 14 pouces de diamètre. Si necessaire, un modèle de base est
fourni sur le site Web de l’AMAA. Il est necessaire que l’acrylique
soit utilise.

Le soutien apporte par des particuliers, les organismes communautaires
et les groupes religieux a ete très encourageant et apporte une
contribution reelle aux nourrissons en Armenie. Une dame de Caroline
du Nord qui a recemment participe a ce programme a ecrit :

ARSENAL AND LIVERPOOL TOLD TO ACT FAST TO BEAT JUVENTUS TO DORTMUND’S HENRIKH MKHITARYAN

Express Online, UK
January 12, 2015 Monday 10:43 AM GMT

by Ben Jefferson

LIVERPOOL and Arsenal will have to act fast if they want to beat
Juventus to Henrikh Mkhitaryan, according to the player’s agent.

Mkhitaryan has been a disappointment at Borussia Dortmund this season
and fallen out of favour with Jurgen Klopp.

And reports in Italy suggest the Armenian could be on his way to Juve
this month, despite previously being linked with Arsenal and Liverpool.

However, Mino Raiola, who represents Mkhitaryan believes Dortmund
may not want to let the player go despite his struggles this term.

Raiola told Radio Anch’io Sport: “He’s an extraordinary footballer,
on both a technical and professional level.

brightcove.createExperiences;

“He grew up in Armenia, then moved to Shakhtar Donetsk. He can create
assists and goals, he’s useful to a team.

“He’s suitable for Juve, he can be part of one of the top 10 teams
in the world.

“However, it’s difficult to see Borussia Dortmund letting him go,
but he could bring something extra to the Italian League.

“We’ll see if he can get to Serie A.”

GYUMRI MURDER NOT TO SPOIL ARMENIA-RUSSIA RELATIONS – POLLSTER

13:57 * 15.01.15

The horrific family murder that left six killed in Gyumri is not likely
to have a negative impact on the Armenian-Russian relations, a pollster
has said, commenting on the crime committed by a Russian serviceman.

“Public memory is very short, so we’ll calm down in a couple of
months after we know what ruling has been issued,” Aharon Adibekyan,
the head of the Yerevan-based independent survey center Sociometer,
told a news conference on Thursday.

The expert said he thinks that Valery Permyakov, who broke into the
Avetisyans’ house Sunday morning after deserting his post in the
city’s Russian military base, probably needed money to leave Armenia.

As a possible solution he suggested creating a joint group of
Russian-Armenian law enforcement officer to investigate into the case.

“As for the verdict, it is all the same to Permyakov where he will
serve his life sentence,” Adibekyan said.

AZERBAIJAN NEWSPAPER: OBAMA CANNOT FORGIVE ALIYEV PERSONAL INSULT

Turan Information Agency, Azerbaijan
January 13, 2015 Tuesday

The official newspaper Azerbaijan (organ of the Milli Mejlis) published
an editorial sharply criticizing President Barack Obama.

The article is called Duplicity of Obama and it says that Obama has
not fulfilled the hopes that he inspired and has not fulfilled the
promises he made during his election to the US president.

At the same time, there are excerpts from articles by authors Finnemore
and Farrell in the edition of Foreign Affairs, where Obama’s policy
is called “hypocritical.”

Further reference is made to materials from WikiLeaks, which “proved”
that the US tracks not only its opponents, but “even” the leaders of
friendly countries, and gathers dirt on them.

In addition, the United States does not fulfill promises to protect
its allies. As evidence, the article gives the fate of Egyptian
President Hosni Mubarak and the fate of his “duly elected” follower
Mohammed Mursi.

According to the authors, the US was obliged to keep Mubarak and Mursi
in power, as they complied with any request from Washington. But in
fact, the overthrow of Mubarak and Mursi was precisely backed by the
United States, the article says.

“Proof” of this is that Freedom House and its head David Kramer did
not react to the decision of the court in Egypt, which sentenced to
death 500 members of the Muslim Brotherhood.

Next, the article says that the response of America to September 11
was the events in Afghanistan, Iraq, Syria, Yemen, Libya and Tunisia.

The “color revolutions” and the “Arab Spring” brought disaster to
those countries.

Events in these countries spread to Europe and Ukraine. “Thanks to the
efforts of the US and its allies, the richest republic of the former
Soviet Union today is in a state of civil war,” the article says.

Further, the material expresses disappointment that under the Obama
administration, relations between US and Azerbaijan have deteriorated.

Under previous administrations, “the parties listened to each other
and to the promises of each other.” But with the advent of Obama,
not a single step was made to support Azerbaijan, the article says.

In particular, in the Karabakh settlement US showed double standards
“at the state level”, which was manifested in the failure of Obama
to approve Bryza as ambassador to Baku.

“Then some circles in the US have sought to carry out scenarios for
the change of power in Azerbaijan. US media and NGOs strengthen the
campaign of “black PR” against Baku. To understand the causes of this
hypocrisy and duplicity is impossible,” the article says.

The authors of the material explain all this with the “personal insult”
of Obama by President Ilham Aliyev.

So, in 2009, Obama invited President Ilham Aliyev to Istanbul to
persuade him to agree to the opening of the Turkish-Armenian border.

“But the strong will of Ilham Aliyev disrupted these evil plans,
and he refused to go.”

“Apparently, Obama still cannot forgive this insult to Ilham Aliyev,”
says the material.

In conclusion, the article makes a “profound” conclusion that the
entire responsibility for the instability in the world, the war and
the crisis lies with the United States, which claims to be the world
leader, but is unable to fulfill this role. -02D-

PROSECUTOR GENERAL CONFIRMS AGAIN GIUMRY MURDER SUSPECT TO BE HELD LIABLE IN ARMENIA

GIUMRY, January 15. /ARKA/. Armenia’s prosecutor general Gevorg
Kostanyan confirmed once again that the conscript of the Russian
military base in Armenia Valery Permyakov suspecting of killing a
family of six in Giumry, will be held liable in Armenia.

Charges against Permyakov will be brought on Thursday.

According to the police’s report, a family of six, Serezha Avetisyan
(born in 1961), Hasmik Avetisyan (born 1959), Aida Avetisyan (1979),
Armen Avetisyan (1981), Araksia Poghosyan (1990) and two-year old
Hasmik Avetisyan were fatally shot in Giumry on Monday morning. The
only who survived is grandchild Serezha Avetisyan who was operated
and is currently in intensive care unit at St. Astvatsamayr Medical
Center in Yerevan. According to the preliminary information, the
suspect is Russian military base conscript Valery Permyakov who was
detained when making an attempt to cross the Armenian-Turkish border
on January 13 and admitted guilt.

Permyakov will be held liable in the territory of the Republic
of Armenia, and everybody in the country will be able to follow
the process, including how the punishment is applied, prosecutor
general said.

Kostanyan said all the physical evidence, the gun, the bullets,
the shells, the clothes and the rucksack are with the Armenian side,
and the evidentiary analysis is carried out in Armenia’s centers and
according to the Armenian laws.

Walkout charges will be brought against Permyakov by the Russian
side and the murder charges by the Armenian side. Kostanyan also said
Armenia will be carrying out the required law-enforcement procedures
independently. The combining of the two cases may be discussed later,
he said.

Today Armenian investigators are carrying out investigatory operations
in the territory of the Russian military base, the prosecutor
general said.

Application and service of sentence is a separate issue and will be
settled as per the bilateral agreement, Kostanyan said. The place
for serving punishment will be a matter of discussion, he said. -0–

FULL APPLICATION OF ARMENIA LAW IN GYUMRI MURDER CASE IMPOSSIBLE: PROSECUTOR GENERAL

12:50, 15 Jan 2015

Armenian Prosecutor General Gevorg Kostanyan visited the Prosecutor’s
Office of Shirak province. He held a press conference dedicated to
the slaughter of the family of six in Gyumri by Russian soldier.

Valery Permyakov, the perpetrator of the crime, and any person related
to the crime will be punished, Kostanyan assured.

The Prosecutor General said the crime in Gyumri should be considered
in the context of international law. “We should not be guided by
emotion, because this is a matter to be regulated by international
law,” he said.

Gevorg Kostanyan noted that full application of the Armenian law
in the case is impossible, as Armenia has international agreements,
which comprise part of our legislature.

The Prosecutor General stressed that if a military crime is committed
on the territory of Armenia, the Russian legislature should be
applied. If there is a different crime, we deal with the Armenian
legislature.

Kostanyan noted that the criminal will stand trial in Armenia and
everyone here will have an opportunity to follow the whole process.