Strengthening Armenia’s SME Sector

STRENGTHENING ARMENIA’S SME SECTOR

The FINANCIAL
March 18 2008
Georgia

The FINANCIAL — To provide further support to small and medium-sized
enterprises in Armenia, the EBRD is providing a $5 million loan to
Cascade Bank, a dynamically growing, private Armenian bank.

The EBRD finance will help the bank expand its lending activities and
specifically target the SME sector, which holds the key to further
strong and sustainable growth in Armenia. The loan to Cascade Bank will
be complemented with an assistance programme sponsored by technical
cooperation funds to establish best practices at the bank.

Cascade Bank is a universal bank that offers a wide range of services
to commercial and private customers. The bank also has a significant
mortgage portfolio and is a member of the international MasterCard
system. Cascade Bank sees small and medium-sized enterprises as a
strategic growth area and is stepping up its efforts to reach out to
the sector.

Michael Weinstein, head of the EBRD’s Yerevan office, said that the
financing is expected to boost the development of SMEs in Armenia, as
the local banking sector still does not lend to SME’s on a sufficient
scale. "The SME sector is so important, because it is there that jobs
are being created, living standards are being raised and the middle
class is emerging", he added.

Jonathan Stark, chairman of Cascade Bank, said, "This credit line
further strengthens our relationship with the EBRD. It will support
Cascade Bank’s mission to offer innovative, affordable loans to a
broader client base and to act as a progressive force encouraging
investment into Armenia."

Aharon Levonyan, CEO of Cascade Bank, added: "Given the upward
trend in Armenian deposit rates, EBRD credit lines are an important
alternative source of funding which will help Cascade Bank continue
to offer lower lending rates to SME borrowers."

The EBRD loan comes under the Armenia Multi-Bank Framework Facility
II which continues the successful provision of funds to local banks
for on-lending to commercial customers. Armenia is part of the Bank’s
Early Transition Countries Initiative which follows a streamlined
approach to financing medium-scale private sector enterprises. The
programme recently topped the 100 marker with 105 projects.

The EBRD’s Early Transition Countries Initiative is supported by a
multi-donors fund which to-date has received almost ~@50 million from
12 donor governments. The fund which exists alongside bilateral support
funds provides financing for project preparation and implementation.

Azerbaijani party unhappy for India’s position in UN

Azerbaijani party unhappy for India’s position in UN

2008-03-15 17:48:00

ArmInfo. ‘Azerbaijani Embassy worked much with the Indian party for the
latter at least to abstain when voting on the Karabakh conflict in UN’,
– Azerbaijan’s Ambassador to India Tamerlan Karayev said when
commenting on the voting results on draft resolution on Karabakh
conflict in UN where India voted "against".

As 1news.az reports, he also added that India did not listen to the
view of Baku. Karayev also said they had big plans regarding the
bilateral relations but by its yesterday’s step India broke everything.
‘At present Azerbaijani Embassy in Delhi is waiting for certain
instructions from Foreign Ministry, after which we shall officially
present our position to the Indian party’, – Karayev said. He also
added that the Azerbaijani party is unhappy for India’s position in UN.
‘It will seriously affect the Azerbaijani-Indian further relations’, –
the ambassador said.

Armenian Prime-Minister To Explain Situation About Simplified Tax To

ARMENIAN PRIME-MINISTER TO EXPLAIN SITUATION ABOUT SIMPLIFIED TAX TO MEDIUM BUSINESSES

ARKA
March 14, 2008

YEREVAN, March 14. /ARKA/. Armenian Prime-Minister Serge Sargsian
expressed his intention to clarify the situation about simplified
tax to medium businesses.

The legislative amendments passed in 2007 narrowed the limits of
imposing simplified tax on economic entities. Under the amendments,
commercial organizations and individual businessmen can pay simplified
tax payers only if they carry out commercial activities in one shop,
kiosk or through one trade facility.

"The simplified tax is not cancelled; the legislative changes are to
bring the major business to taxation framework. These amendments are
not against small and medium business. In the next three-four days
I will meet with representatives of medium business and will clarify
the issue to them in detail," the Premier said.

Yerevan Centre To Get Water Supply On Schedule By March 31

YEREVAN CENTRE TO GET WATER SUPPLY ON SCHEDULE BY MARCH 31

ARKA
March 14, 2008

YEREVAN, March 14. /ARKA/. The Kentron (Centre) District of Yerevan
will get water supply on the following schedule – from 7:00 a.m. to
12:00 a.m., and from 6:00 p.m. to 10:00 p.m.

This system of water supply will continue until March 31. Yerevan
Water Sewage Company says this is accounted for by many water system
failures caused by winter frosts.

The water supply schedule applies to the residential houses located
in Mashtots Avenue (34-37), Byron Street (4-12), Moskovyan Street
(4-38), Abovyan Street (26-34/1), Teryan Street (42-50), as well as in
Nalbandyan, Sayat-Nova, Parpetsi, Pushkin, Saryan, Buzand, Amiryan,
Koghbatsi, Zakyan, Agatangeghos, Khorenatsi, Kajaznuni, Vratsyan,
Kochar, Manukyan, Vardanants, Charents, Nar Dos and Aygestan.

The company apologizes for inconveniences and expresses gratitude
for understanding, the report reads.

At The Crossroad: Between Dignity And Instinct Of Self-Preservation

AT THE CROSSROAD: BETWEEN DIGNITY AND INSTINCT OF SELF-PRESERVATION
Naira Hayrumyan

KarabakhOpen
13-03-2008 13:14:40

The Armenian world – Armenia, Artsakh and the Diaspora – is discussing
seriously the possibility of establishment of democracy and protection
of national security in Armenia. The post-election process in Armenia
is viewed in this context. Although everyone understands this is a
primitive approach, in this discourse many perceive the government of
Armenia as a guarantor of national security, and Levon Ter-Petrosyan’s
supporters as carriers of democracy which is believed to pose national
security to threat.

The discussion takes place in different aspects in the three parts
of the Armenian world.

In Armenia, which is the subject in this process, a great number of
people think that democracy cannot be sacrificed. They think that
the government violated democracy long before March 1. There was no
democracy in the country in the pre-election period when the government
took under control the majority of the media. A major part of people
in Armenia think the absence of democracy is lack of respect of the
government for people, violation of rights, honor and dignity of
every separate person. Most of those people think this behavior of
the government is a heavier blow at the national interests than the
external foe.

In Armenia there are also people who think that some freedoms could
be sacrificed to security and stability. Some people agree not to
get information, live in a corrupt, non-democratic country only to
avoid war.

The correlation of those two parts of the Armenian society is difficult
to measure.

In Artsakh, which is the main subject of national security and where
skirmishes occurred on the border some time ago, there is almost no
discussion (except for a couple of alternative opinions). There is
a diehard opinion that no democracy will help if they are shooting
on the border, that those who cause instability in Armenia are
accomplices of the external foe which is interested in the weakness of
Armenia. In Armenia nobody perceives the idea that democracy can also
be a guarantor of national security. Most people of the country think
that only a strong government can guarantee security in this stage.

Judging by blogs and forums, opinions differ. Most Armenians living
abroad, who live in accordance with democratic rules, were frightened
by the border incident and rumors about funding of the Armenian
opposition from the outside, and think that for the sake of stability
and security it is possible to ignore rigged elections, corruption,
violation of human rights.

Everyone knows that in Armenia non-democratic elections are already
customary, whereas stability is a national priority, say most Diaspora
Armenians, especially who have a Dashnaktsutyun-like thinking.

There are also a great number of Diasporans who do not accept the
present government. They think that this government is a threat
to national security, both in terms of internal and external
policies. They consider the ongoing process as an effort of the
government to hold on to the top of the pyramid.

The following conclusions can be drawn:

1. Part of the Armenian nation perceived the ideas of regional
integration offered by Levon Ter-Petrosyan as a threat to their
security. Hardly anyone denies that the world is moving toward
integration, that this is the only way of not taking a back seat in
politics, that Armenia cannot live in isolation forever, but analyzing
the external conditions, especially hostile neighbors, every Armenian
understand inside that in this situation opening of borders, Caucasian
integration may lead to physical extermination of the Armenian people.

2. Democracy has not become an absolute value for the Armenian people.

Freedom of expression of thoughts, enjoyment of rights for freedom of
political and other opinions set down in laws, public discussion of
urgent problems of the society have not become part of the Armenian
mentality. The basis of the national worldview is the instinct of
self-preservation which stems from objective external conditions.

3. Due to the lack of free media, the Armenian people have difficulty
understanding what the struggle in Armenia is for, and how it is
connected with national security. If it is a banal struggle for
power, why are people involved in it? If the change of orientation is
concerned (pro-West or pro-Russian), how is it possible to find out
without a public discussion, which is more beneficial for an average
Armenian? If it is a Turkish or whatever political plot aimed at
weakening the state, and its external political potential, very serious
arguments are needed to make such accusations. If those arguments had
been offered to people, everything would have moved in a different
direction. The lack of arguments gives rise to other thoughts.

4. Assume that Armenia sacrifices democracy for the sake of stability.

Assume that the external forces forced Armenia to make concessions
which threaten national security. Assume that people decides to go
on protest.

What actions will be taken against the society which protests
against the decision of the government to return the territories,
for instance? Again impose a state of emergency?

In March 13 Interview Serge Sargsian Responds To Nearly 80 Questions

IN MARCH 13 INTERVIEW SERGE SARGSIAN RESPONDS TO NEARLY 80 QUESTIONS OF INTERNET USERS AND CITIZENS

Noyan Tapan
March 13, 2008

YEREVAN, MARCH 13, NOYAN TAPAN. The newly elected president of the
RA, prime minister Serge Sargsian responded to nearly 80 questions
of Internet users and citizens during an over two-hour interview
on March 13. NT was informed by the RA Government Information and
PR Department that the prime minister promised to organize anothet
inteview in the same format after formation of the new government.

4,000 Servicemen To Participate In CSTO Military Drill

4,000 SERVICEMEN TO PARTICIPATE IN CSTO MILITARY DRILL

Interfax News Agency
Russia & CIS Presidential Bulletin
March 11, 2008
Russia

Around 4,000 servicemen are to participate in the Frontier-2008
command-post drill of the Collective Security Treaty Organization
(CSTO,) to be held in Armenia and Russia in the summer and autumn.

"Armored vehicles, cannon artillery, missile systems, army, attack
and fighter aircraft, air defense weapons and engineering and liaison
units will be involved," Maj. Gen. Vitaly Kormiltsev in charge of
the CSTO’s joint headquarters’ tactical and combat training tasks,
told Interfax-AVN.

"The drill is ranked as a brigade-level exercise," the general said.

The troops to be involved in the drill will only act as "conditional
forces," he said.

The Frontier-2008 is a command-post exercise, not force-on-force
maneuvers, Kormiltsev said.

Ararat Zurabian And Alexander Arzumanian Put Under Arrest

ARARAT ZURABIAN AND ALEXANDER ARZUMANIAN PUT UNDER ARREST

Noyan Tapan
March 12, 2008

YEREVAN, MARCH 12, NOYAN TAPAN. As a result of the operative-searching
work implemented by the RA National Security Service, Ararat Zurabian
and Alexander Arzumanian, who were hiding from the investigation,
were discovered in rented Appartment 3, Saryan 16, Yerevan on March
10. On March 11 a message about this was put on the official site of
the RA Prosecutor General’s Office. According to the official message,
they were brought to the Police station and put under arrest by the
RA Special Investigation Service on the same day on the first parts
of Article 300 and Part 3 of Article 225 of the RA Criminal Code on
the suspicions of organizing mass disorders with murders and making
activities directed at ruining the RA constitutional order by violence,
as well as at seizing the state power by violence by infringing the
RA Constitution.

Working Consultations At RA President’s Office

WORKING CONSULTATIONS AT RA PRESIDENT’S OFFICE

armradio.am
12.03.2008 18:05

The doctrine of passports with biometric data and reforms of the
migration system was discussed during President’s Robert Kocharyan’s
working consultations featuring Deputy Prime Minister Hovik Abrahamyan,
the Ministers of Justice, Foreign Affairs, Finance and Economy,
Chief of Police, the National Security Service, representatives of
other interested agencies.

The President said the process that is starting in the migration
system is one of the recurrent steps in the reformation of the state
system and is targeted at formation of a common migration service.

Assistant to RA President Gevorg Mheryan presented the suggestions of
the working group on implementing a system of electronic passports
including biometric data and identification cards. In his words,
passports with biometric data are meant for entering foreign countries,
while inside the country identification cards will be used. The study
of the international experience has shown that implementation of such a
system will enable to reduce the opportunities of falsifying documents,
will simplify and automatize the system of personal identification. It
may also simplify the process of receiving visas to EU member states.

The participants of the consultations underlined the necessity
of implementing an electronic management system. Emphasizing the
importance of the start of the work, the President said a concrete
schedule has been worked out and the interested agencies have been
instructed to work within that framework.

Birth Rate Increased In Nagorno-Karabakh

BIRTH-RATE INCREASED IN NAGORNO-KARABAKH

DeFacto Agency
March 3 2008
Armenia

YEREVAN, 11.03.08. DE FACTO. 375 children were born in the
Nagorno-Karabakh Republic in January-February 2008, which exceeds
the level of the same period of 2007 by 31, 1 %.

According to the information DE FACTO received at the NKR National
Statistic Service today, 37, 6% of the new-born had been registered in
Stepanakert, the capital city of the Republic As compared with the same
period of 2007 death-rate increased by 28, 5 %. In January-February
2007 natural increment of the population increased by 40%, as compared
with the analogous period of the last year, making 91 people. High
indices of the population’s natural increment have been fixed in
Stepanakert and Kashatag region – 31 and 29 people accordingly.

For the two first months of the current year mechanical increment of
the Republic population made 132 people.