Author: Baghdasarian Karlen

ARMENIA: CAN FRENCH HYPERMARKET GENERATE GENUINE RETAIL COMPETITION?

EurasiaNet.org
March 25 2015

March 25, 2015 – 2:06pm, by Marianna Grigoryan

After years of controversy, the French-run hypermarket chain Carrefour,
one of the world’s largest retail giants, finally opened a store
in Armenia earlier in March. But, for many Armenians, the opening
signified more than just easier access to a vast array of retail
items. Rather, it signaled a potentially significant step for Armenia
toward genuine market competition.

When it comes to competitive pricing of retail goods Armenia ranks
poorly among formerly Soviet states. A 2013 World Bank report ranked
Armenia as the most monopolized economy among the then-11 former Soviet
republics that comprised the Commonwealth of Independent States. Little
evidence exists to suggest that conditions have changed significantly
over the last few years.

“Carrefour’s entrance into the market is definitely a positive
step,” commented economic analyst Hayk Gevorgian, who works for the
pro-opposition Armenian Times daily.

Political analyst Richard Giragosian agreed. Carrefour’s opening in
Armenia “may mark an important turning point in the development of
a more open and competitive market,” he said.

President Serzh Sargsyan himself opened the hypermarket’s doors on
March 11. The opening was several years in the making. And after such
a long delay between the initial announcement and the actual opening,
Gevorgian and some other observers wondered whether Sargsyan’s presence
at the grand opening indicated that the French firm had cut some kind
of deal with the government-connected firm that has long dominated
food imports and retail in Armenia — Alex Grig.

A company associated with ruling Republican Party of Armenia MP Samvel
Alexanian, Alex Grig ranked in 2014 as the country’s third-largest
taxpayer (about 21.57 million drams or nearly $45 million). According
to the State Commission on Protection of Economic Competition of
Armenia, it partially or fully controls local markets for margarine,
chicken, oil, sugar and other food products.

No anti-trust actions have ever been launched against Alex Grig.

Economy Minister Karen Tchshmaritian denied at a December 2014 news
conference that monopolies control Armenia’s economy.

At first glance, any food face-off between Alex Grig, via its chain
of 12 Yerevan City supermarkets, and Carrefour might not appear much
of a fight.

Carrefour ranks in size second only to Wal-Mart last year, generating
over 74.7 billion euros (more than $82 billion) in net sales from
stores in 33 countries. The Armenian hypermarket is its second location
in the South Caucasus; another store opened in the Georgian capital,
Tbilisi, in 2012.

Alex Grig, which markets its own items in its Yerevan City
supermarkets, currently dominates grocery sales in the Armenian
capital.

Though small, it is a fiercely defended food fiefdom. In 2013,
after announcements appeared that Carrefour would open in Yerevan’s
high-end Dalma Garden Mall, the space instead was taken over by
another Alexanian-family-owned supermarket, Gourmand.

Yet the Armenian government has its own aims, too.

On a 2014 visit to Yerevan, French President Francois Hollande
visited Carrefour’s present site and claimed that the hypermarket
would encourage other French companies to invest in Armenia.

That prediction, still unfulfilled, generated lots of attention. At
over $99.1 million, France ranks as the largest European foreign
investor in Armenia, and the second overall after Russia, according
to official data.

Despite its membership in the Russia-led Eurasian Economic Union,
Armenia, beset by a weak economy, remains interested in strengthening
ties with the European Union, of which France is a founding member.

But did the desire to attract more foreign investment prompt President
Sargsyan to push his party’s MP, a longtime close political ally,
to tolerate Carrefour’s entry into the Armenian market?

No one can say for sure. But Sargsyan recently brought an even more
powerful politician-businessman to heel. In February, Sargsyan publicly
derided Gagik Tsarukian, a big-spending former ally and head of the
opposition Prosperous Armenia Party, as a blight on Armenia, and
removed him from the National Security Council. Tsarukian promptly
resigned from his party post once investigators began to take an
interest in his financial dealings.

Against that backdrop, some believe that Sargsyan made his views
on Carrefour plain to Alexanian, who chose to comply rather subject
himself to the “Tsarukian” treatment. “[T]he mere fact that Armenia
and France became godfathers on a presidential level [to Carrefour
Armenia] means that the two sides came to an agreement,” said political
analyst Safarian.

Economic analyst Gevorgian agreed. “Carrefour did not fight much
against the obstacles” that prevented its Dalma Garden opening,
he said. “They came to an agreement. That is why it has opened.

Otherwise, the opening would have been delayed again.”

Representatives of Carrefour and Alexanian did not respond to requests
for comment. Alexanian’s wife, Shoghine Alexanian, is registered as
the owner of Alex Grig. The MP denies that he owns anything.

The Republican Party in 2012 denied to EurasiaNet.org that Alexanian
had any influence over Carrefour’s ability to set up shop in Armenia.

For some shoppers, the prices and overwhelming number of local
products on Carrefour’s shelves are “just the same as in every other
supermarket.”

Carrefour’s office in Yerevan announced that 95 percent of its
food items are sourced locally or from local importers; a rate 22
percentage points higher than the worldwide rate for local sourcing
posted on the Carrefour website.

In Armenia, the volume of these purchases does not always appear to
affect retail prices. The 369 dram (77 cents) price for a kilogram
of Alex-Grig sugar, an import market controlled by Alex Grig, is
the same in both Carrefour’s massive hypermarket and a far smaller
downtown Yerevan City supermarket.

A representative of Carrefour’s Yerevan office told EurasiaNet.org
the store cannot comment on the reasons for selling this particular
sugar or its pricing since the company has many “different providers.”

Such reticence is cause for concern among some analysts that
Carrefour’s entry into the market will not have the desired impact
on fostering a more competitive market environment. Said economist
Vahagn Khachatrian, a member of the opposition Armenian National
Congress and former mayor of Yerevan: “We need time to understand
the real face of Carrefour” in Armenia.

Editor’s note: Marianna Grigoryan is a freelance reporter based in
Yerevan and editor of MediaLab.am.

From: Baghdasarian

BAILIFF SERVICE DISAGREES WITH OMBUDSMAN’S OFFICE IN ARMENIA

YEREVAN, March 27. /ARKA/. The bailiff service of Armenia’s ministry
of justice has disagreed with the statement by the Ombudsman’s Office
about unjustified seizure of a trading kiosk of a citizen, the press
office of the bailiff service reported.

The statement by the Ombudsman’s Office says they received an
application from a woman saying her husband, who had a secured
loan from a bank, died, having left the loan unpaid.The bailiff
service seized both the apartment and the trading kiosk, although the
apartment would be sufficient to pay off the amount mentioned in the
writ of execution. Hence, there has been violation of human rights,
according to the ombudsman.

The bailiff service says the statement does not reflect the reality.

The bailiff service studied all the letters from the involved party
on this matter and provided exhaustive answers to them, the press
office says.

The apartment was seized as per the court order, the bailiff service
said. As to the trading kiosk, it was seized to ensure the requirements
of the execution writ are met, according to the report.

The bailiff service stressed the writ of execution defines also
additional fines and interest to be charged on the balance, which
would turn impossible in the event of the first lot price reduction
at the auction

Hence, releasing the shop from the attachment will jeopardize full
execution of the court order, the bailiff service said. -0–

From: Baghdasarian

PRESIDENT MEETS WITH CHAIRMAN OF STANDING COMMITTEE OF NATIONAL PEOPLE’S CONGRESS ZHANG DEJIANG

17:38, 26 Mar 2015
Siranush Ghazanchyan

As part of his state visit to the People’s Republic of China, President
Serzh Sargsyan today visited Tiananmen Square, laid a wreath and paid
tribute to the Monument to the People’s Heroes.

Later on, at the Great Hall of the People the RA President held a
meeting with Zhang Dejiang, Chairman of the Standing Committee of
the National People’s Congress.

The Chairman of the Standing Committee of the National People’s
Congress greeted the Armenian President and underscored that in
the Republic of Armenia, China has a reliable and good partner with
which the dynamically developing political dialogue is based on mutual
respect and trust. He attached importance to President Serzh Sargsyan’s
state visit to China and the successful high-level negotiations with
President Xi Jinping which, according to Zhang Dejiang, will give
new impetus to bilateral relations, elevating them to a qualitatively
new level.

The Chairman of the Standing Committee of the National People’s
Congress laid special emphasis on inter-parliamentary cooperation in
deepening of collaboration in numerous areas of mutual interest and
in further intensification of Armenian-Chinese ties. According to him,
the two countries’ parliaments, legally reinforcing the agreements made
between the Presidents, will greatly contribute to the development
of political dialogue. Zhang Dejiang expressed satisfaction with the
collaboration established with Armenia’s National Assembly.

President Serzh Sargsyan expressed his thanks for the warm words and
hospitality and noted that Armenia regards its relations with China
as one of the most important foreign policy priorities and places
great value on the deepening of friendly relations with China – a
country representing one of the world’s most ancient civilizations
and an influential member of the international community.

The interlocutors agreed that since the establishment of diplomatic
relations between the two countries, recent years’ successful
cooperation and mutual support within the framework of international
organizations have promoted friendship between Armenia and China and
have built mutual trust. At the meeting, the parties also stressed
the importance of inter-party cooperation which has been developing
year after year.

Following the meeting with Zhang Dejiang, Chairman of the Standing
Committee of the National People’s Congress, President Serzh Sargsyan
was hosted at the Old Summer Palace which makes up part of UNESCO’s
World Cultural Heritage. This is the best place to get familiarized
with Chinese rich and diverse culture.

Today, in Beijing President Serzh Sargsyan is also to hold a meeting
with Li Keqiang, Premier of the PRC State Council.

From: Baghdasarian

SERVICEMAN SAMVEL HAKOBYAN POSTHUMOUSLY AWARDED “FOR COURAGE” MEDAL

20:09, 26 March, 2015

STEPANAKERT, 26 MARCH, ARMENPRESS. On March 26, President of the
Nagorno-Karabakh Republic Bako Sahakyan signed a decree awarding
posthumously serviceman of the NKR Defense Army’s N division Samvel
Hakobyan with the “For Courage” medal for bravery shown during
the defense of the NKR state borders, as the Central Information
Department of the Office of the Artsakh Republic President reports to
“Armenpress”.

From: Baghdasarian

TRAIAN HRISTEA: METSAMOR NPP PRESCHEDULED SHUT-DOWN IS THE EU MAIN PURPOSE

by Marianna Lazarian

Wednesday, March 25, 21:42

On March 25 Head of the EU delegation to Armenia Traian Hristea
presented the report “Armenia’s Implementation of the EU “Eastern
Partnership” Programme”: the 2014 recorded progress and Activity
Suggestions”. The Head of the delegation said that Metsamor Nuclear
Power Plant’s prescheduled shot- down was still a number one priority
for the EU.

According to the diplomat, the APS does not meet the modern standards
of atomic security and Metsamor is to be decommissioned.

“The new station is to meet the international security standards. The
Armenian government has declared about the plant life extension
till 2016. Given this, in 2015 the station will be inspected by the
partners”, said Hristea.

The report states the necessity to take actions to close down the
plant as soon as possible.

The Armenian Metsamor Nuclear Power Plant, was built during the 1970s,
only 36 kilometres west of the Armenian capital ofYerevan in the town
of Metsamor. The plant was constructed with two VVER-440 Model V270
nuclear reactors. The Metsamor plant is one of just a few remaining
nuclear power reactors that were built without primary containment
structures. Metsamor NPP lies near earthquake-prone terrain.

Minister of Energy Yervand Zakharyan said to ArmInfo that in spring
2017 the plant’s operation would be suspended. The plant will be
renovated in order to extend its life until 2027.

From: Baghdasarian

BRUCELLOSE EN ARMENIE (SYUNIK) MEDECINE DES VOYAGES

MesVaccins.net
24 mars 2015

Publie le 24 mar. 2015 a 17h01
par Jacques MORVAN

Biographie

– Medecin biologiste a la retraite – Auparavant : medecin biologiste
dans un hôpital d’Instruction des armees pendant 6 ans, puis detache
pendant 20 ans par le Service de sante des armees comme virologiste
d’abord puis comme directeur dans 3 instituts du Reseau international
des Instituts Pasteur.

Liens d’interet

– Aucune remuneration actuelle ou dans le passe de l’industrie
pharmaceutique.

– aucun investissement financier dans une firme pharmaceutique.

– Aucune participation a des etudes cliniques de vaccins.

En Armenie, dans la province de Syunik, a Kapan, selon le ministère de
la Sante, six employes des abattoirs ont presente une brucellose. Onze
cas supplementaires ont ete identifies dans la meme ville. Toutes
les personnes infectees ont travaille a l’abattoir. Le departement
de la sante cherche a identifier la source de l’infection a l’abattoir.

La brucellose est une anthropozoonose due a des bacteries du genre
Brucella. Le reservoir animal est constitue par de nombreux animaux
terrestres. Les principales espèces de Brucella sont :

Brucella melitensis : ovins, caprins (Bassin mediterraneen,
Moyen-Orient), Brucella abortus : bovides (ubiquitaire) Brucella suis :
suides (Amerique, Asie, Oceanie).

A partir des animaux, la contamination humaine est :

directe, cutaneo-muqueuse, dans certaines professions exposees
comme les eleveurs, les fermiers, les travailleurs des abattoirs et
les veterinaires (avortements, mises bas du betail), contamination
surtout par voie cutanee (peau saine, plaies), plus rarement muqueuse
(conjonctivale) ou aerienne, indirecte, digestive (1 cas sur 2),
en cas de comportements a risques : consommation de lait cru, de
fromages artisanaux.

Chez l’homme, elle est responsable d’une maladie d’expression très
polymorphe (“maladie aux cents visages”, “fièvre de Malte”) de longue
duree et evoluant par poussees successives. La primo-invasion est une
infection generalisee avec etat septicemique ou fièvre sudoro-algique.

Dans sa forme secondaire, qui survient 6 mois après la septicemie
en l’absence de traitement ou lorsque celui-ci a ete insuffisant,
il y a constitution de foyers infectieux isoles ou multiples.

La brucellose n’a pas de transmission interhumaine. Le traitement
fait appel a l’antibiotherapie.

Il est recommande au voyageur d’eviter de consommer des produits
laitiers non pasteurises produits de facon familiale, de manger de
la viande bien cuite et de ne pas frequenter les fermes qui peuvent
etre infectees.

From: Baghdasarian

REP. ADAM SCHIFF HONORS 2015 WOMEN OF THE YEAR

Congressional Documents and Publications
March 23, 2015

U.S. HOUSE OF REPRESENTATIVES DOCUMENTS

Los Angeles, CA- On Friday, March 20, at a luncheon in Echo Park, Rep.

Adam Schiff (D-Burbank) honored a group of inspiring women from
communities in the 28th Congressional District -West Hollywood,
Burbank, Pasadena, Silver Lake, Echo Park, Elysian Valley, Los Feliz,
Sunland Tujunga (no hyphen), Glendale, Atwater Village, La Canada
Flintridge and La Crescenta. This recognition is made each year during
Women’s History Month.

“It was wonderful to meet with this group of remarkable women, and to
recognize their outstanding work in our community,” said Rep. Schiff.

“These women demonstrate the truth of the maxim that if you need
something done, ask a busy person. Each has worked tirelessly to
support a myriad of charitable, business and community causes, and
made an indelible mark on our region. It was an honor to recognize
them and to show our appreciation for their extraordinary service.”

Below is a full list of honorees from this year:

Lynn White-Shelby (Burbank), Kellye Nakahara Wallett (Pasadena), Renae
Plant (Los Feliz), Tracy A. Stone (Elysian Valley), Jean Maluccio
(La Crescenta), Seda Khojayan (Glendale), Ann Neilson (La Canada
Flintridge), Lynda Rescia (Silver Lake), Cheryl Ortega (Echo Park),
Nadia Sutton (West Hollywood), Sandra Caravella (Atwater Village),
and Susan B. Stewart (Sunland).

These honorees come from all backgrounds and professions and represent
the thousands of women who make a positive impact in our communities.

While there are no specific criteria for nomination, Rep. Schiff looks
for women to recognize who — through their work or volunteerism —
have improved the quality of life for our community.

Rep. Schiff entered a special tribute to each woman into the
Congressional Record, which is also below, and presented these tributes
to each woman. A photo from the event can be seen here.

[parts omitted]

A Tribute to Seda Khojayan – 28th Congressional District Woman of
the Year

Monday, March 16, 2015

I rise today in honor of Women’s History Month. Each year, we pay
special tribute to the contributions and sacrifices made by our
nation’s women. It is an honor to pay homage to outstanding women who
are making a difference in my Congressional District. I would like
to recognize a remarkable woman, Seda Khojayan of Glendale, California.

Seda Khojayan immigrated to the United States from Iraq in 1976.

Currently, she is a member of the Soroptimist International of
Glendale, serves as a Commissioner on the City of Glendale Commission
on the Status of Women, and on the Board of Directors of the YWCA of
Glendale. Mrs. Khojayan has been a dedicated member of the Armenian
Relief Society of Western U.S.A., Inc. (ARS) for over three decades,
serving on its Regional Executive Board for two terms and in the
capacities of Chair, Treasurer and Advisor for the ARS Sepan Chapter
in Glendale.

Seda uses her professional experience as a Programmer/Data Security
Analyst for a major car manufacturer and education in Economics and
Public Administration, to help plan and implement fundraising efforts,
including grant writing, to help Armenian organizations such as the
ARS secure funding for various philanthropic, educational and social
projects for low income families and for the needy. She also served
as a fundraising committee member of Homenetmen Glendale “Ararat”
Chapter, Homenetmen Navasartian Games and Festival, Armenian Cultural
Foundation (ACF), and for the City of Glendale, including the Unity
Fest, Man’s Inhumanity to Man, and Relay For Life.

Throughout the years, Seda has received numerous awards, including
the City of Glendale Commission on the Status of Women’s Jewels of
Glendale Women of Courage Award in 2008, the ACF’s Community Service
Award in 2013, and the Armenian American Chamber of Commerce’s Woman
in Community Service Award in 2014. Mrs. Khojayan and her husband,
Shirak, have two sons, Shaun, a federal criminal defense attorney,
and Dikran, an industrial engineer, and one granddaughter, Lillian.

I ask all Members to join me in honoring an exceptional woman of
California’s 28th Congressional District, Seda Khojayan.

From: Baghdasarian

ARMENIA’S EXTERNAL DEBT REACHES CRITICAL POINT

Vestnik Kavkaza, Russia
March 24 2015

24 March 2015 – 7:24pm

By Susanna Petrosyan, Yerevan. Exclusively for Vestnik Kavkaza

The complex situation around the governmental debt of Armenia has
been furthermore complicated. The government has released a package
of bonds worth $500 million for 10 years at a rate of 7.5%. In other
words, Armenia has received another loan. At the start of the year,
the government declared that the bonds would be released to cover the
budget deficit and support the stability of the economy. Economists
are not in doubt as to whether the government made a wise step, they
point out that the number of bonds exceeds the budget deficit, the
deficit will be co-financed by national sources, because the bonds
are released using foreign funds. It is a debt needed to put out the
fire in the economy. But what will happen after the fire?

Economist Vilen Khachatryan speaks against increasing the debt,
supposing that the burden lies on the shoulders of the future
generations. Taking emigration into account, the debt per capita keeps
growing. But the problem is that the total sum of the external debt
of Armenia has hit $4.9 billion, or 52% of GDP.

In 2012, the Aidit Chamber warned in its budget report that management
of the debt will become risky in 2013 because the debt service reached
$300-400 million a year. Wall Street Journal experts say that Armenia
has become one of the most unreliable debtors. Its rating made a
dramatic fall in Moody’s Investor Service rating in January 2015.

The factors forcing the international financial rating of Armenia
down are fluctations of the dram rate, reduction of the currency
mass on the market due to the reduction of transfers from Russia,
the policy of the Central Bank in the reduction of currency reserves
and uncertainty of export development.

According to the Central Bank, the volume of transfers from Russia
to Armenia, which is the main share of foreign currency flow to the
country, dropped by 56.01% in January 2015 compared with the same
month in 2014.

Concerning the dram exchange rate, despite its relative stability,
experts cannot rule out a new wave of dram devaluation. Economist
Narek Karapetyan calls the dram overrated, staying afloat thanks
to the efforts of the Central Bank, at quite a dear price for the
country. “The dollar costs 475-480 drams today. The government is
artificially keeping the dram at that level to avoid mass destitution
of the population and bankruptcy of large companies with debts in
dollars,” says the expert.

In this context, it is worth reminding that, according to official
data of the Central Bank, the foreign reserves of the country
amounted to $1.26 billion in February, dropping by $91 million
compared with January. According to the Armenian Times newspaper,
the foreign reserves lost $229 million in just two months this year,
or over 15%, and $853 million throughout 2014, or over 40%.

Some economists believe that most of the lost currency reserves were
spent on artificially maintaining the dram rate.

The trade disbalance in favour of imports remains one of the gravest
economic factors. According to the National Statistical Service,
the red ink in the foreign trade balance in February 2015 amounted
to more than 145 million.

The economic policy of the Armenian authorities is characterized by
support for a monopolistic economic system, support for monopolistic
importers, and pressure on small and medium-sized business.

Consequently, the country lacks real competition, resulting in
growing prices and further destitution of the population. A logical
repercussion of the tendency is instability and fluctuations in
the dram rate. The negative developments are not corrected by the
government, not to mention any radical measures.

Economists do not rule out that continuation of the economic policy
with the aforementioned characteristics means that the day when the
external debt reaches 60% of GDP is not far away. Taking new loans
after that point would be impossible. Armenian law does not allow
the external debt to exceed GDP by 60%.

Despite assurances by the government that the debt is controllable,
the world has many states where the economic situation was marked by
much severer changes. Data of the last years demonstrates a gradual
rise of external debt and its approaching the red line. In 2014,
the external debt exceeded the benchmark of 50% of GDP, considering
that it was only 16% of GDP in 2008. The loans received so far have
not had any visible positive effect on the Armenian economy.

Obviously, the new sum of $500 million will only make life for the
population tougher.

From: Baghdasarian

OVER 200 POLICE CADETS IN YEREVAN JOIN THE RANKS OF ABMDR (ARMENIAN BONE MARROW DONOR REGISTRY )

March 25, 2015

A total of 233 young police cadets at the Police Academy of the
Republic of Armenia joined the ranks of the Armenian Bone Marrow
Donor Registry (ABMDR).

The cadets joined the registry as potential bone marrow stem cell
donors, during recruitment drives that were held on the premises of
the Police Academy, in Yerevan, on March 17 and 24. The drives were
led by ABMDR executive director Dr. Sevak Avagyan and ABMDR medical
director Dr. Mihran Nazaretyan.

“It was marvelous to see the cadets’ enthusiasm and spirit of
volunteerism during the recruitments,” Dr. Avagyan said.

“In addition to the cadets of the Police Academy, hundreds of men and
women serving in Armenia’s armed forces as well as first responders
have joined the ranks of ABMDR this year and in the recent past,
bringing their practical support to the registry’s life-saving
mission,” said Dr. Frieda Jordan, president of ABMDR. “By joining
our organization, these dedicated service men and women are setting
a wonderful example for Armenian youths everywhere.”

As Dr. Avagyan thanked the leadership of the Police Academy and the
cadets for making the recruitments a great success, he announced that
the recruitment drives at the academy will become an annual tradition.

About the Armenian Bone Marrow Donor Registry

Established in 1999, ABMDR, a nonprofit organization, helps Armenians
and non-Armenians worldwide survive life-threatening blood-related
illnesses by recruiting and matching donors to those requiring bone
marrow stem cell transplants. To date, the registry has recruited
over 26,000 donors in 24 countries across four continents, identified
2,482 patients, and facilitated 20 bone marrow transplants.

From: Baghdasarian

U.S.-BASED ARMENIAN THINK TANK SLAMS YEREVAN OVER EUROBOND ISSUANCE

ECONOMY | 25.03.15 | 10:37

Policy Forum Armenia (PFA), a Washington-based group of Armenian
economists, political scientists, journalists, legal experts and
others, considers the recent issuance of Eurobonds by Armenia’s
Government “irresponsible” and “damaging for the country”.

In a statement released on Tuesday, the PFA suggested that Armenia
needs economic reforms rather than issuance of expensive foreign debt,
something that it believes will result in “even bigger losses”.

Last week, the Armenian government issued its second Eurobond worth
$500 million at a yield of 7.5 percent. The 10-year dollar bonds
were sold in international financial markets through Deutsche Bank,
HSBC and JP Morgan on Thursday.

In approving the measure in January the Cabinet led by Prime Minister
Hovik Abrahamyan cited the need to finance Armenia’s budget deficit
and “neutralize” the Russian recession’s spillover effects on the
Armenian economy.

But the PFA has criticized the Armenian government for the move and
its “desire to avoid policy changes”.

“Deep reforms are needed to move Armenia’s economy from an imminent
collapse. Issuing expensive foreign debt and attempting to pay one’s
way out of the crisis will only delay the inevitable and result in
even bigger losses for consumers, banks, and the sovereign balance
sheet,” the organization’s Executive Board said.

The PFA, which is known to question the legitimacy of the current
Armenian government and alleges large-scale government corruption
in Armenia, also called on the international community and capital
market participants “to cease funding the regime in Yerevan”.

“Future democratic governments of Armenia will have every reason
to declare these debts illegitimate and stop servicing them,”
it concluded.

The Armenian government carried out the first dollar bond issuance in
September 2013, raising $700 million at a yield of 6.25 percent. It
was then touted as a successful operation.

From: Baghdasarian