Author: Chakrian Hovsep

CENTRAL BANK OF ARMENIA KEEPS INTEREST RATES STABLE IN NOVEMBER

World Market Research Centre
Global Insight
November 11, 2009

The Central Bank of Armenia (CBA) in its meeting yesterday decided
to keep its refinancing interest rate unchanged at 5%, Reuters reports.

The CBA had taken a similar decision also last month, while September
had seen it cut the rate by 25 basis points, in the seventh monthly
easing in a row (seeArmenia: 9 October 2009:). While announcing its
decision, the CBA expressed its confidence on Armenia’s ability to meet
the inflation target this year. The CBA’s monetary policy programme
specifies the planed end-year consumer price inflation at 4% plus/minus
1.5 percentage points. The central bank added that the current level
of interest rates was low enough to provide for support for economic
recovery. The latest inflation data put annual consumer price growth
in October at 3.5%, in some moderation from the September rate of 3.7%
(seeArmenia: 3 November 2009:).

Significance:Given the extremely severe economic contraction that has
gripped Armenia this year as foreign currency inflows have dried up,
demand-side inflation pressures remain very muted. On the other hand,
the same does not hold true for cost-side inflation. Indeed, strong
upward pressure on annual service price inflation has resulted from
the increase of Russian gas prices enacted earlier this year.

Moreover, imported inflation risks are posed by the vulnerability
of the dram exchange rate to the shock of the sharp reduction in
investment and remittance inflows, and the resultant wide external
financing gap. Indeed, ARKA News reports that the CBA again had to
defend the external value of the dram with foreign currency sales,
as the relative exchange rate stability that had resulted from the
CBA’s imposed limits on commercial banks’ hard currency holdings proved
only temporary, prompting even expectations that the CBA may have to
require commercial banks to sell their foreign currency reserves.

Thus, the CBA may soon again face the trade-off between supporting
growth on the one hand, and seeking to control inflation and
buttressing the dram on the other. Then again, due to the undeveloped
state of the financial sector, the role of Armenian refinancing
still remains mainly an indicator of the Central Bank’s inflation
expectations, rather than an effective policy tool that would have
a clear impact on market interest rates.

HATIS START EUROPEAN BASKETBALL CUP WITH DEFEAT

/PanARMENIAN.Net/
13.11.2009 12:49 GMT+04:00

/PanARMENIAN.Net/ Armenia’s Hatis basketball club was defeated 105:54
by Greece’s Panathinaikos in their pioneer match of the European
Basketball Cup. Thus, the Armenian club bottoms the Group F chart
with no points.

Hatis will play vs. another outsider, Russia’s Chekavata in Yerevan
on November 19.

POACHING IN ARMENIA SIMPLY ENTERTAINMENT FOR THE RICH, SAYS WWF-ARMENIA

Tert
Nov 11 2009
Armenia

Animals are being killed in all regions in Armenia, except perhaps in
specific preservation reserves, said Director of World Wildlife Fund
Armenian branch Karen Manvelyan while speaking with journalists today.

In Manvelyan’s words, animals in Armenia are not being killed for food,
but rather simply as a unique pasttime for the rich and wealthy.

Unfortunately, it’s very difficult to fight against poaching, continued
Manvelyan. As an example, the WWF-Armenia director mentioned the
limited number of inspectors. In one of Armenia’s largest provinces
(known as marzer), Syunik, there is all of 5 inspectors supervising
the area.

Manvelyan added that in August of the current year, they were able
to capture four poachers.

The WWF office in Armenia was founded in Yerevan in 2001, and in
November 2006, it was officially registered as the Armenian branch
of the World Wildlife Fund ().

AGHVAN HOVSEPIAN: FORMATION AND STRENGTHENING OF ATMOSPHERE OF TOLERANCE IS SUPREME ARMS OF OUR EXISTENCE

Noyan Tapan
Nov 9, 2009

YEREVAN, NOVEMBER 9, NOYAN TAPAN – ARMENIANS TODAY. A regular, 4th
congress of the Nig-Aparan Compatriotic Union was held on November 7
in Yerevan, as a result of which its management was changed: Haykaz
Navasardian was elected Union Chairman, Mkhitar Saribekian Executive
Director, and Union First Chairman Vrezh Markosian became Honorary
Chairman. The congress elected the Council staff consisting of 300
people and presidency staff consisting of 55 people.

RA Prosecutor General, Union Honorary Chairman Aghvan Hovsepian
said in his speech that Nig-Aparan has become a union uniting people
having different political views, opposite ideas, forming a culture
of cooperation and joint work irrespective of their political
convictions. "We have become united here and I am hopeful that it
will continue." A. Hovsepian attached importance to formation and
strengthening of an atmosphere of tolerance mentioning that it is
the supreme arms of Armenian nation’s existence.

BRANDS FROM TURKEY AND IRAN TO BE REPRESENTED AT THE CONSTRUCTION EXHIBITION IN YEREVAN

PanARMENIAN.Net
09.11.2009 18:22 GMT+04:00

/PanARMENIAN.Net/ Seventh International Specialized Exhibition
"Caucasus CONSTRUCTION AND RENOVATION EXPO 2010" will be held from
April 2 to 4 of 2010 in the Sports and Concert Complex after.

Demirchyan in Yerevan, press office of LOGOS EXPO Center reports.

The exhibition is aimed at finding new business partners and markets,
attracting foreign investments to Armenian economy.

"For the first time in Armenia largest brands in construction from
Turkey, Georgia and Iran will be presented. This event will provide a
unique platform for the establishing and developing business relations
between construction companies of Armenia and the countries of the
region, " the statement says.

Armenian companies will receive the opportunity to integrate with
largest manufacturers in the construction industry that will lay
the basis for the growth of international investment in the Armenian
economy, the report says.

In theframework of the exhibition following presentations and round
tables are scheduled: "Application of new technologies in modern
construction", "Rational use of modern design ideas in interior
and exterior".

Event is organized by the LOGOS EXPO Center and the Union of
Industrialists and Entrepreneurs of Armenia and officially supported
by Armenia’s ministry of economy, Union of Constructors of Armenia,
Union of Designers of Armenia and Armenian Union of Architects.

The exhibition is expected to bring together more than 100 industry
leaders: investment and construction companies, design organizations,
etc.

APA, Azerbaijan
Nov 7 2009

Next meeting between Azerbaijani and Armenian presidents to be held by
the end of November

[ 07 Nov 2009 14:51 ]

Baku. Lachin Sultanova ` APA. The Co-Chairs of the OSCE Minsk Group,
Ambassadors Yury Merzlyakov of Russia, Bernard Fassier of France, and
Robert Bradtke of the United States, released the following statement
today.

"The OSCE Minsk Group Co-Chairs (Ambassador Yuri Merzlyakov, the
Russian Federation; Ambassador Bernard Fassier, France; Ambassador
Robert Bradtke, United States) visited Azerbaijan and Armenia November
4-6. They met Azerbaijani President Ilham Aliyev November 5 in Baku
before traveling to Yerevan November 6 to meet Armenian President
Serzh Sargsian. They returned to Baku November 6 for a second meeting
with President Aliyev.
In Baku and Yerevan, both presidents reiterated their commitment to
continue their discussions, with the objective to make further
progress toward reaching an agreement on the basic principles for the
peaceful settlement of the Nagorno-Karabakh conflict. They accepted
the proposal of the Co-Chairs to organize their next bilateral
meeting, the sixth such meeting this year, before the end of November
at a time and place to be confirmed."

IRAN FINES ARMENIA FOR VIOLATIONS OF TAKE-OR-PAY GAS AGREEMENT

APA
Nov 6 2009
Azerbaijan

Baku – APA-ECONOMICS. Iran is delivering 1 to 1.2 million cubic meters
of natural gas to Armenia a day in exchange for an equivalent amount
of electricity under a contractual agreement, said Rasoul Salmani,
engineering and technical services director of Iran’s National Gas
Export Company (NIGEC).

In his words, the Iranian side is technically ready to increase the
daily volume to 3 million cubic meters a day but can’t do this because
of Armenia’s dragging feets.

"Because this is a take or pay agreement, the Armenian side should pay
Iran a fine. This is due to the fact that despite Iran’s willingness
to supply more gas in accordance with the agreement, Armenia takes
lessen than the planned gas volumes," he added.

A take or pay principle is a contractual agreement in which one party
agrees to purchase a specific amount of gas or to pay the equivalent
cost even if the specified amount of gas is not needed.

The amount of penalty will be fixed and Armenia will be informed of
this, he noted.

ARMENIA WANTS BORDER CHECKPOINT TO REOPEN

Interfax
Nov 5 2009
Russia

Yerevan wants to reopen the Verkhny Lars checkpoint on the
Russia-Georgia border as soon as possible, Armenian Foreign Ministry
press secretary Tigran Balayan told the media in Yerevan on Thursday.

"The Armenian position is clear. It has been declared several times.

We welcome the possible Russian-Georgian agreement to reopen Verkhny
Lars," he said.

The checkpoint closed down in 2006. Russia said it needed repairs.

Verkhny Lars is a transit point for Armenia.

Georgian Foreign Minister Grigol Vashadze said that negotiations
were underway.

"Georgia is holding negotiations with Armenia, which, in turn,
is negotiating with Russia. A meeting has been held, mostly about
technical aspects," the Georgian media cited Vashadze.

"ITALY-ARMENIA" FRIENDSHIP GROUP ESTABLISHED IN ITALIAN PARLIAMENT

PanARMENIAN.Net
06.11.2009 12:10 GMT+04:00

/PanARMENIAN.Net/ Armenian Ambassador to Italy Ruben Karapetyan met
with the members of the new "Italy – Armenia" parliamentary friendship
group. A group of friends of Armenia in the Italian parliament is
expanding and now it has 22 MPs.

Ambassador Ruben Karapetyan proposed to strengthen inter-parliamentary
ties, and invited the Italian parliamentarians to visit Armenia to
discuss issues related to the further expansion of cooperation.

According to the Italian MPs, Armenia is a friend of Italy, and
they are ready to strengthen and develop friendship between Armenia
and Italy.

During the meeting an agreement was reached to organize exhibitions
on history, culture and politics at the Italian Parliament, press
service of the Foreign Ministry of Armenia reports.

NEW CHAIRMAN OF UNION OF BANKS OF ARMENIA ELECTED

PanARMENIAN.Net
06.11.2009 18:36 GMT+04:00

/PanARMENIAN.Net/ Ararat Ghukasyan was elected a new chairman of the
Union of Banks of Armenia (UBA), who served as executive director of
"Converse Bank", press service of UBA reports. Ararat Ghukasyan was
unanimously elected a chairman of the Union of Banks on November 4. He
will replace Emile Soghomonyan, chairman of the board of Prometheus
Bank, who headed UBA since August 2007.