Author: Chmshkian Vicken

GDP OF ARMENIA DECREASED BY 0,7 PERCENT
By Ara Martirosian

AZG DAILY
24-02-2009

At February 20 press conference, Head of the Armenian National
Statistical Service Stepan Mnatsakanian presented the indexes of
statistical works program of 2008 and the annual indexes of the
Armenian social-economic state in 2008.

Answering the question of "Azg" daily, Stepan Mnatsakanian also
presented the preliminary social-economic indexes of January of 2009.

According to the above-mentioned indexes, in January of this year,
first time during the recent years, a little economic fall is
recorded in Armenia – 0,7 percent. It means that gross domestic
product decreased by 0,7 percent – 99,3 percent of January of last
year exceeding AMD 132 billon.

A fall is recorded in industry, as some of the mining and chemical
industrial plants partially or fully stopped working. Decrease
in industry was 6,5 percent, without electricity – 2,4
percent. Electricity production decreased by 21,2 percent.

Agriculture increased by 0,4 percent, retail trade – 5,9 percent,
services – 1,4 percent.

According to Stepan Mnatsakanian, construction recorded the biggest
growth increasing by 13,4 percent compared with January of 2008.

The number of officially unemployed increased by 4,7 percent, medium
average wages – 14,4 percent to AMD 94 thousand; in the public sector –
AMD 76 thousand, in the private one- AMD 119 thousand.

External trade was USD 254,3 mln – 75,5 percent of the external trade
of January 2008. Export was USD 34,2 mln – 56,1 percent of January
of last year,. import – USD 220,1 mln or 79,8 percent of January of
last year.

DEVELOPMENT OF REGIONAL TRANSPORT SYSTEM TO HELP DEVELOP TOURISM IN ARMENIA

ARKA
Feb 24, 2009

TSAKHKADZOR, February 24. /ARKA/. Development of the regional transport
system will facilitate development of tourism in Armenia, President
of Association of Armenian Freight Forwarders Makar Arakelyan said.

On-land transport communication may facilitate inflow of tourists to
the country as the air route is very expensive, Arakelyan said at his
interview to ARKA Agency during the sixth "Bridge-2009" international
economic forum Saturday. High cost of air transportation reduces
demand on tourism market of Armenia, he said.

Travelers first of all calculate the fare, then the hotel price and
other services, Arakelyan said. If fare is high, tourists try to find
alternate countries on the market.

In responding the question what should be done to turn Armenia into a
transit country Arakelyan said that roads not operated for political
reasons should be restored and regional problems, particularly those
with Azerbaijan and Turkey, should be solved.

Today Armenia has the Karabakh issue unsolved and if a mutually
advantageous solution is found to the problem, Armenia may become a
transit country, he said. Then, Armenia will get to Russia and Europe
through Azerbaijan and it will become a transit country for Georgia,
Turkey, Russia and Azerbaijan, Arakelyan said.

Hürriyet, Turkey
Feb 22 2009

Armenian expert: US will refrain naming 1915 incidents as "genocide"

U.S. President Baracak Obama will refrain from naming the 1915
incident as "genocide" since his country will need Turkey’s support
for Afghanistan policy, the latest key factor in U.S. foreign policy,
an Armenian expert claimed on Saturday.

"The U.S. key dimension is Afghanistan, which sidelined Iran and
Iraq," PanArmenia.net website quoted professor Ruben Safrastyan,
director of the Institute of Oriental Studies at the RA National
Academy of Sciences, as saying.

Washington would need Ankara’s support for this purpose, Safrastyan
said, adding that "proceeding from national interests, Obama will not
use the term `genocide’ in his annual April 24 statement."

The Armenian lobby organizations put their efforts to have recognized
their claims regarding the 1915 incidents to U.S. Congress. During the
election campaign, Obama had pledged to recognize the Armenian claims.

Turkey says it would be unfair to accept a one-sided characterization
of the incidents by ignoring independent and impartial assessments by
historian and scholars, reminding casualties suffered by Ottoman
Muslims during World War One.

"Keep in mind that CIS chief (Leon Panetta) arrived in Turkey
immediately after Obama’s phone talks with President (Abdullah) Gul
and Prime Minister (Tayyip) Erdogan," he was also quoted as saying
adding that Panetta was reported to discuss a possibility of deploying
of a U.S. base in Turkey.

The issue of 1915 incidents is highly sensitive for Turkey as well as
Armenia. Around 300,000 Armenians and at least as many Turks, died in
civil strife that emerged when Armenians took up arms, backed by
Russia, for independence in eastern Anatolia.

However Armenia, with the backing of the diaspora, claims up to 1.5
million of their kin were slaughtered in orchestrated killings in
1915. The issue remains unsolved as Armenia drags its feet in
accepting Turkey’s proposal of forming a commission to investigate the
claims.

GEORGIAN FM TO VISIT MEMORIAL OF ‘GENOCIDE’ VICTIMS IN ARMENIA

Azerbaijan Business Center
Feb 20 2009
Azerbaijan

Baku, Fineko/abc.az. Stating of its strategic partnership with Turkey
and Azerbaijan, Georgia nevertheless is taking steps that can hardly
be regarded within this context.

Citing the Ministry of Foreign Affairs of Armenia, news agency RIA
Novosti reports that today foreign minister Grigol Vashadze of Georgia
is arriving in Armenia with two-day official visit. Within his trip
the Georgian FM will meet President Serzh Sargsyan, prime minister
Tigran Sarkisyan and his counterpart Edvard Nalbandyan.

Vashadze is also expected to visit the memorial to Armenian genocide
victims in Yerevan, although up to date Georgia has not recognized
at the official level the fact of genocide of Armenians in the times
of the Ottoman Empire.

Georgia’s "strategic partners" – Turkey and Azerbaijan come forward
against "genocide" and the memorial visit will hardly stay without
attention of official Ankara and Baku, especially taking into account
that the Armenian genocide memorial visit will take place on the eve
of anniversary of the genocide by Armenians themselves in the city
of Khojali in Azerbaijan.

By the present the Armenian genocide has been recognized by Uruguay
(in 1965), Russia, France, Italy, Germany, Holland, Belgium, Poland,
Lithuania, Slovakia, Sweden, Switzerland, Greece, Cyprus, Lebanon,
Canada, Venezuela and Argentina. The Armenian genocide was also
recognized by Vatican, European Parliament, and World Council of
Churches.

NASDAQ OMX ARMENIA WELCOMES ARMECONOMBANK AS ITS MEMBER

ArmInfo
2009-02-20 17:40:00

ArmInfo. Effective from February 20, 2009, "Armenian Economy
Development Bank" open joint stock company (Armeconombank ojsc) was
admitted as a member of NASDAQ OMX Armenia stock exchange. Membership
status will provide the bank with full access to all exchange markets,
including corporate securities, Government bonds, REPO, and foreign
currency.

By data of Armeconombank, as of January 1 2009 total capital of the
bank was 8.6 billion drams. Assets – 52 billion drams, credit portfolio
– 27 billion drams and net profit for 2008 – 460 million drams.

Armeconombank ojsc is the successor of the Armenian branch of the USSR
"Zhilsotsbank", which was established in 1988. In 1991, the bank was
reorganized into an open joint stock company.

Armeconombank has been listed on the Armenian Stock Exchange since
2002, and is currently the only company with stocks listed in the B
list of NASDAQ OMX Armenia – at present, there are no stocks included
in the A main list of the stock exchange, while stocks of other eight
companies traded on the exchange are admitted to trading on the free
C market.

Major shareholders of the bank are Sukiasyan family that owns 53.4%
of all shares, European Bank for Reconstruction and Development (25%),
"Harwal Limited" company (5.48%), and the rest of the shares (over 16%)
belongs to the public. As of the end of year 2008, Armeconombank’s
total capital was approximately AMD 8.8 billion, and total assets
exceeded AMD 50.3 billion. Armeconombank has 46 branches in Yerevan
and across Armenia.

In total, at February 20, 2009, NASDAQ OMX Armenia has 22 members,
including 15 banks.

The NASDAQ OMX Group, Inc. is the world’s largest exchange company. It
delivers trading, exchange technology and public company services
across six continents, and with over 3,900 companies, it is number
one in worldwide listings among major markets. NASDAQ OMX technology
supports the operations of over 60 exchanges, clearing organizations
and central securities depositories in more than 50 countries.

In January 2008, Nordic exchange operator OMX Group acquired 100%
of shares of the Armenian Stock Exchange (Armex) and the Central
Depository of Armenia (CDA). After the combination of NASDAQ and OMX
in February 2008, Armex and CDA have become fully owned by the NASDAQ
OMX Group, Inc.

On January 27, 2009, "Armenian Stock Exchange" ojsc was officially
renamed as "NASDAQ OMX Armenia" ojsc.

GURGEN ARSENIAN: THERE IS VIOLATION OF RULES IN GOVERNMENT’S ACTIVITIES, AND PRESIDENT DOES NOT RESTRAIN IT

Noyan Tapan
Feb 20, 2009

YEREVAN, FEBRUARY 20, NOYAN TAPAN. "It seems to our managers
that representatives of our political or economic segment are
simple-minded and can swallow anything that is presented as a thin
porridge to the people," chairman of the United Labor Party (ULP)
Gurgen Arsenian stated when discussing the Armenian government’s
anti-crisis measures. According to G.

Arsenian, he is surprised at these measures – in the negative sense.

Comparing the years of Robert Kocharian’s presidency with one year
of Serzh Sargsyan’s term of office, G. Arsenian said: "There were
definite rules of game under president Kocharian and they were
not violated reagrdless of who was whose friend. Today there is a
violation of rules in the government’s activities, and the president
does not restrain it". In his words, the auction of "Bjni" Plant has
also left a negative impression.

ARMENIAN AMERIABANK PLANNING TO INSTALL 28 NEW ATMS IN 2009

ARKA
Feb 20, 2009

YEREVAN, February 20. /ARKA/. Ameriabank of Armenia is planning to
install 28 ATMs in 2009.

The bank had only 2 ATMs in February 2008, but their number reached 20
by the end of 2008, including 17 in Yerevan, 2ATMs in Kotayk region and
one in Nagorno-Karabakh Republic, the bank’s press service reported.

According to the report, in December 2008 the volume of transactions
processed through ATMs grew 13.1-fold against January 2008 while the
number of transactions during the same period grew 17.2-fold. The
number of plastic cards issued by the Bank has grown as well –
5.6-fold against the previous year, says the bank’s report.

Ameriabank closed joint stock company is an investment bank offering
corporate and some retail services in a complex package. A major
Russian investment and banking companies – Troika Dialog Investment
Company – is a strategic partner of Ameriabank closed joint stock
company.

INTRODUCTION OF CASH REGISTERS IS REMINISCENT OF BOLSHEVIKS-ORGANIZED DISPOSSESSION OF KULAKS, ANDRANIK TEVANIAN SAYS

Noyan Tapan
Feb 18, 2009

YEREVAN, FEBRUARY 18, NOYAN TAPAN. Subjecting the small and medium
business to a "tax terror" by means of cash registers is reminiscent
of the process of dispossession of kulaks (rich peasants) organized by
the Bolshevik authorities, economist Andranik Tevanian, the head of
"Political Economy" Institute of Political and Social Studies, said
at the February 18 press conference. In his words, it is praiseworthy
that the authorities decided to struggle against the shadow sector,
but they mistakenly believe that this struggle should start from small
and medium business. "Until they get to big businessmen, the small
and medium ones will disappear. So, which is more important for us:
to eliminate the shadow economy or people?" the economist asked.

He added that in general, the Armenian government distorts all lofty
ideas, in particular the fight against corruption has been distorted
to such an extent that "one unwillingly wants to say: "Long live
corruption". "A hot line based on an "information mechanism" was
created by the same Bolshevik method, as a result of which corruption
has become more widespread: tax inspectors offer the entities not
using cash registers that instead of paying a 100 thousand dram fine,
they give them a bribe of 30-40 thousand drams against not drawing
up a report.

As regards lotteries with the use of receipts of cash registers,
A. Tevanian said that on the one hand they cause lottery mania
among people, while on the other hand they have a negative impact on
buyer-seller relations.

Summarizing his speech, A. Tevanian noted that he considers it
unacceptable to implement reforms by strangling businesses. In his
opinion, fixed payments should be used at the moment, while the use
of cash registers should be reviewed in the future.

Speaking about the government decision to exempt carpet making sector
from profit tax and VAT, A. Tevanian said that the given sector has
always been exempt from these taxes. In his words, carpet makers
have never paid profit tax due to the absence of profit, and they
were exempt from VAT because in Armenia, VAT for exported goods is
returned to exporters.

SERZH SARGSYAN: "THIS YEAR WE ARE OBLIGED TO INCREASE TENFOLD ATTENTION TO VILLAGE"

Noyan Tapan
Feb 16, 2009

YEREVAN, FEBRUARY 16, NOYAN TAPAN. On February 14, Armenian President
Serzh Sargsyan convened a working consultation to discuss issues
regarding RA regions’ 2008 socio-economic development and summing
up the implemented programs, revelation of current problems, and
coordination of the work to be done in the coming months and raising
their efficiency. According to the report of the RA President’s Press
Office, RA NA Speaker, Prime Minister, Deputy Prime Minister, Ministers
of Energy and Natural Resources, Agriculture, Urban Development,
Governors took part in the consultation.

Opening the conversation, S. Sargsyan made a number of observations,
drawing attention of government and regional government bodies heads to
doing the planned work in the proper term. He considered inadmissible
decelerations connected with snow cleaning work both in the capital
and in regional centers and country’s other communities. "There is
a policy in some state government links I do not like at all, and
we should stop that policy once and for all. It is when we attend
to problems after they are revealed, we go behind the problems,"
S. Sargsyan mentioned.

He also touched upon the delays of salary payment in some comprehensive
schools lately. S. Sargsyan gave an instruction to exclude such
manifestations.

Touching upon preparation for spring agricultural works, S. Sargsyan
said: "We are obliged this year to increase tenfold our attention
to the villages, our villagers, those creating production and raw
materials. In that issue both my attention and the attention of the
government will be great, and we should be able, including here,
to mitigate the world economic crisis consequences on our economy."

S. Sargsyan gave an instruction to work in the direction of
introduction of concrete criteria of estimating efficiency of
territorial government bodies’ and their heads’ work. Governors were
instructed to be more active and to become mediators between, on
the one hand, programs of small and medium-sized business development
financed by the government and local business initiatives and programs,
on the other hand, at that considering creation of new jobs as a
priority goal.

Touching upon large-scale construction work in Shirak and Lori this
year, the President instructed to study correspondence of possibilities
of manpower in those regions to the volume of construction work and
to involve other regions’ residents in that work if necessary.

RIA OREANDA, RUSSIA
Economic News
February 12, 2009 Thursday

Turkmen-Armenian Economic Development Commission Meets in Ashgabat

Ashgabat . OREANDA-NEWS . February 12, 2009. The Turkmen-Armenian
intergovernmental commission for economic development consisting of
the high-ranking officials and government officials of the leading
sectoral ministries and departments of Turkmenistan and Armenia held
the first meeting in Ashgabat.

The commission was co-chaired by Vice Premier of Turkmenistan
H. Saparlyev and Minister of Energy and Natural Resources of the
Republic of Armenia A. Movsisian.

Opening the meeting the heads of the delegations put emphasis on
mutual interest in diversifying and intensifying mutually advantageous
cooperation and expressed belief that the commission would create
powerful incentives to further traditional partnership between
Turkmenistan and Republic of Armenia. It was noted that the important
bilateral documents had laid the solid foundation for the maintaining
the fruitful dialogue which had been brought today up to a higher and
filled with a new concrete content. The agenda of the first day of the
meeting included a wide range of the issues of bilateral collaboration
prioritizing such fields as trade and economy, chemical industry,
transport and communication, agriculture.

Exchanging views on the further trends in fuel and energy partnership
the hosts invited the Armenian partners to take part in the
international conference Reliable and Stable Transit of Energy and Its
Role in Ensuring Sustainable Development and International Cooperation
which would be held in Ashgabat this April. The guests accepted the
invitation with great enthusiasm.

A focus of the talks was humanitarian cooperation particularly in the
spheres of education, science and healthcare.

Emphasis was put on the importance of enhancing and expanding cultural
contacts as well through participating in international festivals and
other cultural forums organized in Turkmenistan and Armenia. The
partners unanimously called for establishing effective contacts in the
sphere of sport and tourism as the priorities of national development.

The aspects of the draft Agreement between the Government of
Turkmenistan and the Government of the Republic of Armenia on the
Turkmen-Armenian intergovernmental commission for economic development
were touched upon during the meeting held in the businesslike and
constructive atmosphere

On behalf of the Armenian delegation Minister Armen Movsisian
expressed sincere gratitude to the President and the Government of
Turkmenistan for the heartfelt welcome extended in the Turkmen land
and emphasized that the establishment of the commission vividly
illustrated the countries intention to develop full-scale partnership
in the interests of two friendly peoples.