Author: Emil Lazarian

ARMENIANS DEMONSTRATE AGAINST MOSCOW KILLINGS
Agence France Presse — English
June 5, 2006 Monday 2:22 PM GMT
Around 100 people demonstrated outside the Russian embassy to Armenia
on Monday demanding an end to a string of racist killings in Moscow
of people of Armenian origin.
Activists at the demonstration led by the Armenian Helsinki Committee
waved placards marked “Stop fascism” and handed over a message for
the Russian ambassador saying that racist groups were acting “under
the protection of Russian state structures”.
Six people of Armenian origin have been killed in racially motivated
attacks in Moscow this year, the activists said.
“There is an ideological vacuum in Russia at the moment due to the
failure of democratic principles and values,” said the Helsinki
Committee’s chairman, Avetik Ishkhanian. “Several forces are trying
to fill this vacuum with nationalist ideology and they need to be
stopped”.
This Caucasus country has had close ties with Russia since the Soviet
Union’s 1991 collapse but they have been strained in recent months,
partly due to attacks on Armenians in Russia.
In the latest such attack a 19-year-old was stabbed to death on a train
on May 25 by a group of young people who shouted “Glory to Russia”,
a lawyer representing members of the Armenian community said.
Another activist, Arsen Kharatian, said it was time to re-evalute
the commonly held belief that Russians could do no wrong.
“It’s necessary to free ourselves of the stereotype of the Russian
who one can’t speak out against … Both Russia and Armenia should
fight at state level against racism,” he said.
From: Emil Lazarian | Ararat NewsPress

FITCH ASSIGNS ARMENIA FOREIGN, LOCAL CURRENCY RATINGS OF ‘BB-‘
Interfax News Agency
Russia & CIS Business and Financial Newswire
June 5, 2006 Monday 6:38 PM MSK
Fitch assigned the Republic of Armenia foreign and local currency
Issuer Default ratings (“IDR”) of ‘BB-‘ (BB minus) with a Stable
Outlook, the agency said in a press release.
At the same time Fitch has assigned a Short-term rating of ‘B’ and
a Country Ceiling of ‘BB-‘ (BB minus), the release says.
“Armenia’s sovereign credit ratings are supported by prudent
macroeconomic policies and a declining public and external debt
burden that compares favorably with rated peers,” said David Riley,
Managing Director of Fitch’s Sovereigns Group.
Impressive economic performance has been underpinned by a robust and
coherent macroeconomic policy framework and wide-ranging structural
reforms that have enhanced the capacity of the economy to absorb
adverse shocks.
Armenia’s public finances are a rating strength. Fiscal deficits have
been contained at below 3% of GDP since 2002 and are forecast to remain
so, aiding a continued reduction in the general government debt burden,
which at 21% of GDP in 2005 already compares well with its rated peers.
The Central Bank of Armenia (“CBA”) has a demonstrated commitment
to low inflation – which has averaged 3.3% per year since 2000 –
and a flexible exchange rate regime, helping to insulate the economy
from adverse external price shocks. Moderate fiscal and external
financing needs are comfortably met with concessional loans from
the international financial institutions (“IFIs”), and external debt
servicing costs are correspondingly low and below those of peers.
Nonetheless, the importance of maintaining prudent fiscal and
monetary policies and building confidence in the CBA’s new inflation
targeting regime and economic stability are underscored by low levels
of monetization and financial intermediation that, combined with high
dollarization, continue to render the economy vulnerable to shocks.
With income per capita rising rapidly, official financing flows will
become less concessional and the government will need to broaden its
financing sources, including by developing the domestic government bond
market. Substantial inflows of remittances – estimated at around $750
million (15% of GDP) – help narrow the domestic savings-investment
gap and are an important source of external finance, but they are
also potentially susceptible to exogenous shocks.
And while the scorecard in terms of economic reform and liberalization
since independence is impressive, further measures to strengthen
governance and the still relatively immature political system, as
well as reduce the high level of corruption, would enhance long-term
investment and growth prospects.
Despite strong economic growth, Armenia’s ratings are constrained
by its low per capita income, which stood at just $1,500 in 2005
compared to the ‘BB’ group median of $2,500. Armenia subsequently
has a lower debt tolerance than wealthier economies. The government
also faces the challenge of increasing its tax take as social and
infrastructure spending needs rise over the short-to medium-term. At
just 14% of GDP, the government’s tax base is among the lowest of all
sovereigns rated by Fitch and constrains overall revenue generation,
in turn limiting fiscal flexibility.
A further important rating consideration is the country’s challenging
geopolitical situation, notably with respect to the absence of a
permanent resolution on the status of Nagorno-Karabakh and the
normalization of relations with Turkey. Fitch judges the risk
of renewed violent conflict between Azerbaijan and Armenia over
Nagorno-Karabakh to be low over the near to medium term. Nonetheless,
the absence of a permanent political resolution continues to pose a
threat to regional stability over the long term.
In Fitch’s judgment substantive changes in economic policies are
unlikely, despite national assembly and presidential elections in
2007 and 2008, respectively. Improving the business environment and
raising domestic savings and investment, including the development
of local capital markets that would enhance the government’s domestic
financing capability, would be positive for Armenia’s ratings.
Negative economic or political shocks, including increased tensions
over Nagorno-Karabakh or the results of forthcoming elections, would
bring negative pressure to bear on the ratings.
From: Emil Lazarian | Ararat NewsPress

ANOTHER TRAIN WITH VEHICLES TO SET OFF FROM GEORGIA ON TUESDAY – OFFICIAL
Interfax News Agency
Russia & CIS Military Newswire
June 5, 2006 Monday 4:58 PM MSK
Another train with weapons and materiel of the Russian base being
withdrawn from Georgia is ready for dispatch to Russia, Colonel
Vladimir Kuparadze, deputy commander of the Russian forces in
Transcaucasia, told Interfax-Military News Agency by phone from
Tbilisi on Monday.
“The train with 10 T-72 tanks and other military hardware of the
Russian 62nd base deployed in Akhalkalaki will depart from the
railway station of Tsalka early on Tuesday and will head for Russia
via Azerbaijan,” he said.
This will be the sixth train: three dispatched earlier carried the
equipment of the 62nd base, and two more that departed from Batumi,
where the 12th base is deployed, were sent to Armenia to replenish
the Russian 102nd base there.
Kuparadze said that a column of 20 wheeled vehicles would be sent to
Gyumri, where the 102nd base is headquartered, on Thursday.
“Another 40 wheeled vehicles will be sent to Gyumri from Batumi by
train also on Thursday,” he noted.
From: Emil Lazarian | Ararat NewsPress

AZERI DELEGATION MANDATE ISSUE INCLUDED IN PACE JUNE SESSION AGENDA
PanARMENIAN.Net
05.06.2006 16:46 GMT+04:00
/PanARMENIAN.Net/ The agenda of the Summer Session of the Parliamentary
Assembly of the Council of Europe (PACE) to be held June 26-30 has
been announced. June 26 Rene van der Linder will deliver a speech,
a report on the development of the Assembly Bureau and Standing
Committee will be heard, the outcomes of the referendum in Montegerno
will be discussed. Russian Foreign Minster Sergey Lavrov will address
the session as the chair of the Committee of Ministers. Turkish Prime
Minister Recep Tayyip Erdogan is scheduled to deliver a speech June 28.
June 29 the issue of the Azerbaijani delegation to PACE will be
discussed. In this view the report organized by co-chairs of the
Monitoring Committee Andreas Gross and Andres Herkel will be heard. The
issues to be considered on the last day of the session include the
ratification of the Framework Convention on the rights of national
minorities, reported the press service of the Council of Europe.
From: Emil Lazarian | Ararat NewsPress

YEREVAN READY TO CONTINUE DIALOGUE WITH BAKU FOR KARABAKH SETTLEMENT
PanARMENIAN.Net
05.06.2006 17:51 GMT+04:00
/PanARMENIAN.Net/ “We are ready to continue dialogue with Azerbaijan
for the settlement of the Nagorno Karabakh conflict and with Turkey on
establishing relations without any preconditions,” Armenian President
Robert Kocharian stated when addressing Black Sea Forum for Dialogue
and Partnership. “The people of Nagorno Karabakh have implemented
in practice the right for self-determination. It was done fully in
line with the requirements of international law. Results of the
referendum on independence were later defended in the war forced
on that people. These events developed in the timeframe of global
changes, related to the collapse of the Soviet Empire. That situation
is classical for cases of self-determination through secession,”
Robert Kocharian said.
“Now for fifteen years Nagorno Karabakh Republic continues to prove its
right for independence by own achievements in effective statecraft. A
whole generation grew up there, which watches itself as possessors
and defenders of that statehood. We believe that there is a need for
effective efforts for a full-scale integration of the Republic in
the international society,” the Armenian President remarked.
From: Emil Lazarian | Ararat NewsPress

KOCHARIAN-AIYEV MEETING OVER IN BUCHAREST
PanARMENIAN.Net
05.06.2006 19:50 GMT+04:00
/PanARMENIAN.Net/ The meeting of Armenian and Azerbaijani Presidents
Robert Kocharian and Ilham Aliyev on the Nagorno Karabakh conflict
settlement finished in Bucharest. Today’s meeting lasted 40 minutes,
no detailed have been announced. Yesterday the leaders of the states
held a 4-hour meeting, reported IA Regnum.
From: Emil Lazarian | Ararat NewsPress

PRIME MINISTER CONTENT WITH BUDGET PERFORMANCE
Panorama.am
13:14 05/06/06
NA standing committees held a joint meeting at the parliament today
reporting on the execution of the law “On 2005 state budget.” Atom
Janjughazyan, vice minister of finance and economy presented the draft.
Main variations from the stipulated budget are connected with credit
and grant programs by foreign funding. They are not connected with
the performance of the government, he said.
Answering to the questions of reporters, prime minister Andranik
Margaryan said, “I am content with the level of performance.” The
government head said it is not possible to ensure 100 % execution
of the budget since credits and grants delayed on objective and
subjective reasons. The budget ensured 99,9% income flow – with 100%
tax and non-tax revenues and 99,6% state dues.
The alienation of land ensured 99,4% budget revenues.
In terms of expenditures, 97,1% performance is ensured and deficit
funding was performed by 78,3%. Armenia is provided only 59% of the
planned credits. However, the country could pay back credits on its
own means.
From: Emil Lazarian | Ararat NewsPress

IF I WERE NATURE PROTECTION MINISTER
Panorama.am
13:20 05/06/06
4th grade schoolchildren of school N 154 wrote essays on the topic
“if I were a nature protection minister.”
They pictured our planet with dark colors- dead animals, death, cut
trees. In tomorrow’s planet they wrote about green environment with
lots of flowers and children playing in green zones. They called in
their essays not to cut trees and protect the nature.
During the meeting in Orhus center, Margarita KHACHATRYAN, teacher
of biology from the same schools said that one of the students even
wrote in the essay that he would plant gardens out of town and would
not allow the adults to go there. To the question why he would do so,
he answered, “adults only damage the environment.”
The programs are initiated within the World day on Environment
Protection. OSCE has organized courses at schools and distributed
leaflets on environment on the occasion. “Children must be educated to
love nature without which a human being cannot live,” OSCE Ambassador
Vladimir Priakhin said.
Children are also interested in the sale of genetically modified food,
particularly of Turkish origin. Amalia Hambarzumyan, head of Khazer
non-profit organization, advised the children not to buy food which
is labeled genetically modified.
From: Emil Lazarian | Ararat NewsPress

BUDGET PERFORMANCE IS NOT A PILE OF NUMBERS, NA SPEAKER SAYS
Panorama.am
13:15 05/06/06
“Percentages and numbers are important but they should be supplemented
with additional information that explains them,” Tigran Torosyan,
NA Speaker said speaking about last year’s budget performance
discussions. He advised to supplement the numbers with content to
Atom Janjughazyan, chief treasurer and vice minister of finance and
economy. “We have had good budget performance for many years but have
presented it as a pile of numbers only,” Torosyan said.
From: Emil Lazarian | Ararat NewsPress

INTERNAL NETWORKS OF 1 665 MULTI-APARTMENT BUILDINGS IN YEREVAN HAVE BEEN RECONSTRUCTED
ArmRadio.am
06.06.2006 13:25
The Social Development Fund of Japan has provided a US$1 million grant
for improvement of water supply systems of multi-apartment buildings
in Yerevan.
Internal networks of 1 665 multi-apartment buildings have been
reconstructed under the program launched in 2003. By August the number
will reach 1 750.
About 2 600 water meters have been installed in houses of the needy.
Due to the program accomplished with the immediate participation
of condominiums, every family will save 1 250 drams monthly. Every
building will save 113 cubic meters of water in the average.
From: Emil Lazarian | Ararat NewsPress