Author: Ekmekjian Janet

PanARMENIAN.Net

Sahakashvilli assures: Armenia ended in fiasco because of its
dependence upon Russia
09.03.2009 16:36 GMT+04:00

/PanARMENIAN.Net/ The main priority of Georgia’s authorities is the
prevention of its economy crash which can be avoided only under stable
political conditions, said Mikhael Sahakashvilli, President of
Georgia. You know that within a few weeks Armenia’s economy underwent
a fiasco. Armenia ended in a fiasco because it was fully dependent
upon Russia’s market, and when the Russian market collapsed, Armenia’s
economy collapsed accordingly. We are now in a region where the
neighbouring countries face difficulties in the field of economy. As
to Georgia, it will survive even under hardest conditions, if we reach
a political stability,’ he said.

`Russia excluded Georgia `from its market’ three years ago but Georgia
managed to carry out its reforms on time. We know that people are in
need, we must not allow the worst to happen, and that is the economy
crash, and it shall not happen since the situation will develop the
way we have planned to,’ he added.

He made the above statement in Ckneti (a Tbilisi suburb) at the
opening ceremony of a new hotel and entertainment centre, `Kopala’
belonging to a businessman, Tamaz Kopealeshvilli. The latter is also
the owner of a restaurant chain in Moscow. Sahakashvilli calls him `a
real patriot’ who despite the global economic crisis and the August
war, invested in Georgia.

`Any person working like him can hope that the president will become
his ally, and the Government-his major supporter,’ Sahakashvilli
said. `If the situation develops the way we have planned to, we shall
be able to regulate all other problems,’ Civil Georgia reports.

IMF welcomes Armenian authorities’ policy

YEREVAN, March 9. /ARKA/. Murillo Portugal, Deputy Managing Director
and Acting Chair, speaking Monday at a press conference where he
commented International Monetary Fund’s approval of $540 million credit
for Armenia, welcomed the policy the country’s authorities pursue.

`Sound policies are essential to maintain macroeconomic stability. The
recent return to a flexible exchange rate will help cushion the impact
of the global downturn and eventual further regional deterioration. An
appropriately tight monetary policy is necessary to contain the
inflationary pressures stemming from the depreciation and support
demand for dram-denominated assets’, he said.

Portugal said that since the approval of a low-access PRGF arrangement
in November 2008, Armenia has been confronted by a variety of major
external shocks.

`Reflecting the sharp deterioration in global economic conditions,
private transfers and capital inflows slowed considerably and
international commodity prices have dropped severely, affecting mining
exports and production’.

Portugal said that in light of a rapid decline in international
reserves and growing financing needs, the authorities have requested
additional financial assistance from the Fund.

`Falling international prices, lower growth, and exchange rate
depreciation will help reduce the external current account deficit.
Medium-term prospects remain good.

Along with that, Portugal said that Armenia is still vulnerable before
possible regional economic decline and political tension.

He said that reasonable policy will help maintain macroeconomic
stability and mitigate impacts of the global crisis.

`While a potential negative impact of the depreciation on the financial
sector seems unlikely, contingency plans are available to help address
any such effects. In light of the expected revenue shortfall, fiscal
policy will remain prudent, protecting social outlays and public
investment by reducing non-priority spending’, Murillo Portugal said.

IMF has approved 28-month Stand-By Arrangement for Armenia amounted to
SDR 368 million ($540 million).

The IMF lends this money to support programs aimed at adapting the
country to deteriorating global prospect and restoration of public
confidence in monetary and financial system and protection of the poor.

SDR 161.5 million (about $237 million) of this money will be
transferred immediately and the remaining amount will be sent in nine
tranches, after considering quarterly reviews.

The arrangement gives opens access to IMF funds that makes 400% of
Armenia’s share.

The loan is extended under 1.54% annual interests for a five-year
term.-0—

CONGRATULATORY ADDRESS OF NKR PRESIDENT BAKO SAHAKYAN…

Azat Artsakh Daily
06 March 09
Republic of Nagorno Karabakh [NKR]

CONGRATULATORY ADDRESS OF NKR PRESIDENT BAKO SAHAKYAN…

in connection with on the March 8 international woman’s day
(Stepanakert, March 7, 2009) Dear women, I congratulate you on
the March 8 international woman’s day and wish all the best. No
matter what kind of warm words we say you today, it is impossible to
express the heartstrings of respect and gratitude. Together with
men you have tasted the hardship of life and the thrill of victory. You
keep the family hearth and defend the homeland, bring up and educate
generations, take an active parte in developing out independent
statehood, invigorate, inspire and direct us towards new achievements.
Dear mothers, sisters and daughters, hero women of Artsakh! I
congratulate all of you once again and wish you be always healthy and
beautiful, live in affluence and plenty, always being surrounded by
love and care. Peace to you and your families.

YEREVAN TO HOST JANSEM’S WORKS EXHIBITION AND SALE

PanARMENIAN.Net
06.03.2009 14:12 GMT+04:00

/PanARMENIAN.Net/ From Mar. 20 to Apr. 5 Arame Art Gallery will host
an exhibition and sale for works of Jansem, (Hovhannes Semerdgyan),
one of the most prominent artists of Armenian Diaspora. Arame Art
gallery, jointly with Flora Jansem Paris Art Gallery, owned by the
artist’s daughter, will feature 45 works including oil paintings,
graphics and lithography.

Jean Jansem is one of the great artists of Armenian heritage. He
was born in 1920 in Seuleuze, (Turkey) and spent his childhood in
Salonika, Greece. He arrived in France at the age of 11 where he
started painting. He took evening courses in the Montparnasse Quarter
in Paris, and graduated from the School of Arts Dératifs in 1938.

Since 1951, Jansem has held exhibitions of his work in all round
the world.

MARCH 3 DECISION OF CBA CREATED CHAOTIC SITUATION IN ECONOMY, ANC STATES

Noyan Tapan

M arch 5, 2009

YEREVAN, MARCH 5, NOYAN TAPAN. On March 3 the Central Bank of Armenia
(CBA) made a decision, by which it gave up the fixed exchange rate
policy it has conducted in recent years. According to a statement
that the Armenian National Congress (ANC) issued on the same day,
the CBA did not give any clear explanation about the expected policy
with respect to the Armenian dram.

The ANC believes that this decision has created a chaotic situation in
Armenia’s economic system. The decision is a result of the authorities’
short-sighted and criminal policy of ignoring the intensity of the
global crisis and preserving the vicious economic system aimed at
serving the interests of the importing oligarchs.

According to the statement of the ANC, all this is leading to a social
disaster, bankruptcy of small and medium businessmen, deterioration of
the financial state of commercial banks, and the continuous enrichment
of the importing oligarchs and high-ranking officials. As a result,
the distrust of society and economic entities in the economic policy
of the government is increasing, creating panic moods.

The Armenian National Congress believes that in the current situation,
the following measures should be taken:

– ensuring transparency of the formation of living essentials’
prices with the aim of excluding the possibility of superprofits;
urgent implementation of antimonopoly measures,

– a reduction in the prices of public services (in particular, gas
and power),

– temporary suspension of tax administration reforms until the crisis
is overcome.

TURKEY, ISRAEL HOLDING SECRET TALKS

PanARMENIAN.Net
06.03.2009 11:17 GMT+04:00

/PanARMENIAN.Net/ Israel and Turkey have been involved in quiet
but intensive talks to end the "crisis" between the two countries,
Haaretz daily reported on Thursday. Officials from both countries
have exchanged messages regarding "the need to restore relations to
an even keel and hope to do so in the coming days," a senior Jerusalem
source told the daily.

Ankara’s harsh criticism against Israel’s military operations and
the angry exchange of words between Prime Minister Tayyip Erdogan
and Israeli President Shimon Peres have strained ties between the
two traditional and historic regional allies.

In the latest incident, Ground Forces Commander Avi Mizrahi said in
February that Erdogan "should first look in the mirror", and accused
Turkey of "committing a massacre of Armenians, as well as suppression
of the Kurds."

The senior government official said that the positive messages have
intensified after Israel wrote to the Turkish prime minister’s office
and the Turkish military telling that Mizrahi had been reprimanded
for criticizing Erdogan during a lecture.

The exchanged messages followed a letter sent by Turkish President
Abdullah Gul to his Israeli counterpart Peres a few weeks ago, in
which he expressed the desire to visit Israel in the coming months.

Gul, who postponed a planned regional visit in January that included
Israel because of an ear complaint, is expected to be in the Jewish
state during the second half of the year.

EDWARD NALBANDIAN: ARMENIA-ITALY RELATIONS HAVE GOD PERSPECTIVES OF DEVELOPMENT

armradio.am
06.03.2009 14:42

On March 6 the Foreign Minister of Armenia, Edward Nalbandian,
received the delegation headed by Alfredo Mantica, Secretary of State
for Foreign Affairs of Italy.

Greeting the guest, Edward Nalbandian ranked high the current level of
Armenian-Italian relations and noted that those relations have good
perspectives of development and a serious potential. In this context
Minister Nalbandian attached importance to high-level reciprocal visits
from the perspective of promoting the bilateral political dialogue.

Alfredo Mantica underlined that Italy is interested in the development
of friendly relations with Armenia.

Minister Nalbandian and State Secretary Mantica discussed the ways
of expanding the cooperation in the political, trade-economic and
cultural fields.

The interlocutors discussed the Eastern Partnership proposal and stated
that the cooperation in that format provides new opportunities for
expanding cooperation with European structures and EU member states.

During the meeting reference was made to the negotiations on the
settlement of the Artsakh issue. The interlocutors exchanged views
on the perspectives of normalization of Armenian-Turkish relations,
as well as the establishment of peace and stability in the region.

‘TERRIBLE’ ARMENIA IN THE EYES OF CERTAIN AZERBAIJANI ‘GROUNDBREAKER’ OR HIS PATRONS

ArmInfo
2009-03-06 11:43:00

ArmInfo. ‘European states and international organizations should
realize that today Armenia poses a serious threat to regional
security’, said head of the Center of Political Innovations and
Technologies, certain Mubariz Ahmedoghlu at a press conference
Thursday, an Azerbaijani media reported.

To ground his equally silly and dogmatic statement, certain mubariz
declared that Armenia ‘has recently attempted to use the "Christianity"
card’ making use of the resistance between the catholic and orthodox
churches. At the same time, this mubariz for some unknown reason
calls the Armenian Gregorian Church catholic. He blames Armenia for
the desire to prove to someone and for some eason (which is not clear)
that Armenia is the only catholic state in the South Caucasus.

Leaving alone the theological views or, more precisely, full absence
of any in the statements of a certain mubariz, we’d like to mention
another stylistic howler which is a regular result of the Azerbaijani
innovator’s ‘thoughts’. ‘Armenia is a weak state and therefore under
the influence of external powers might launch war against other
states, including Georgia and Russia. Yerevan has already received
West’s support’, mubariz said.

Mr. Aliyev Junior, we are well aware that oil prices are
slipping as well as the funds you provide for the anti- Armenian
propaganda. However, we sincerely sympathize with the Azerbaijani
taxpayers whose funds you waste distributing them to certain
mubarizes. Nevertheless we advise you at least to check their mental
abilities before paying them for the anti-Armenian propaganda. Given
the statements by the aforementioned mubariz, this advice is not
superfluous.

IMF: TEMPORARY INCREASE IN INTEREST RATES TO ENHANCE CONFIDENCE IN ARMENIAN BANKING SYSTEM

ARKA
March 4, 2009

YEREVAN, March 4. /ARKA/. Temporary increase in interest rates will
help to enhance confidence in Armenian banking system, by rewarding
Armenians for keeping their money in the banks, IMF residence office
in Armenia said on Tuesday.

"Second, it can help to reduce the inflationary pressures that are
likely to result from the depreciation, and sends a signal that the
central bank is still serious about inflation. Finally, it will help
to reduce incentives for banks to engage in speculative behavior,
because it will become more expensive for banks to borrow dram from
the central bank", the IMF said in its report.

Board of the Central Bank of Armenia has raised refinancing interest
rate 1.0 percentage points to 7.75%, Central Bank Chairman Arthur
Javadyan said on Tuesday.

He told journalists that the decision was prompted by the fact that
crises-caused deflation environment on world markets and slowing
growth in domestic demand foster low inflation. Nevertheless, he said,
risks of increase in target inflation indicators are becoming very
likely amid devaluating currency.

The previous change in refinancing interest rate was made on February
10. It was driven 0.25 percentage points down to 6.75%.

ARMENIA PRICES SETTLE AFTER SPIKE, PANIC SHOPPING
By Hasmik Lazarian

Reuters
March 4 2009
UK

YEREVAN, March 4 (Reuters) – Armenia said prices were stabilising
on Wednesday after an initial spike on news the country would float
its dram currency, and the authorities promised to fine shop owners
trying to charge excessively.

Shops saw panic buying after Tuesday’s move by the central bank,
which preceded an announcement by the IMF that it would consider
lending the former Soviet state $540 million dollars to soften the
impact of the global financial crisis.

The dram tumbled 18 percent from 305.75 to 372.11 against the dollar
and prices of oil, butter, sugar and petrol shot up as ordinary
Armenians rushed to buy goods in fear of the value of their money
falling further.

But on Wednesday, the currency was just slightly further down at
372.95 against the dollar and officials said they would act against
businesses who tried to exploit consumers.

"Right now, prices are stabilising," Ashot Shahnazaryan, the chairman
of Armenia’s trade regulator, told a news briefing.

But he added: "Traders should provide explanations for increasing
prices. If they are unreasonable, these traders will be fined."

Analysts say the opposition, smarting over elections it says were
rigged last year and a subsequent crackdown on protests, will likely
seek to use the crisis to exert more pressure on the government.

After a period of strong economic performance, the landlocked country
of 3.2 million people has been hit hard by the global crisis and
Russia’s slide into a first recession in 10 years.

Russian firms control a significant chunk of the Armenian economy,
and support a considerable number of Armenians working in Russia and
sending money home to their families.

"In two to three hours yesterday we sold what we would usually sell
in two to three days," said Vahan Kerobyan, executive director of
the popular Star supermarket chain, which briefly shut its doors on
Tuesday to consult with distributors.

Kerobyan said Star would raise prices by 15-20 percent, but that he
expected prices at other shops to increase even more.

The International Monetary Fund — which will likely approve the
28-month standby loan on Friday — cited falling exports, a slowdown
in remittances, and the decreasing price of copper — one of Armenia’s
main exports — on world markets.

It said the dram might depreciate as much as 30 percent.

The World Bank welcomed the decision to float the dram, and urged
efforts to strengthen competition in domestic and import markets
"in order to prevent unjustified increases in prices, due to exchange
rate adjustments, and tame inflation pressures."

The World Bank group has a scaled, 3-year lending programme in
place worth $525 million. Russia also offered Armenia — its closest
ally in the South Caucasus — a $500 million stabilisation loan in
February. (Writing by Matt Robinson in Tbilisi; editing by Patrick
Graham)