Author: Kajoyan Gevork

Armenia Gets Another Western Credit Rating
Radio Liberty, Czech Republic
July 25, 2006
By Atom Markarian
Moody’s Investors Service, a leading Western risk assessment company,
has assigned its first-ever credit rating to Armenia in what senior
officials in Yerevan described on Tuesday as another milestone in
the country’s transition to the free market.
Moody’s ratings are widely used by investors around the world for
analyzing risks associated with lending to foreign countries and
companies. The BA2 grade given to Armenia signifies a medium level
of creditworthiness.
The chairman of the Armenian Central, Tigran Sarkisian, and Finance
Minister Vartan Khachatrian stressed the fact that Moody’s rated
Armenia more highly than neighboring Georgia and Turkey and put it on
a par with neighboring Azerbaijan. They said the rating will allow
the Armenian government to sell bonds in international financial
markets and will make it easier for local private firms to attract
foreign investments and loans.
Khachatrian made it clear, however, that Yerevan has no intention to
issue so-called Euro-bonds in the near future. “The government does not
plan to issue Euro-bonds and get into greater debt in the coming years
because we think we can achieve our current objectives with internal
resources and loans received from international organizations,”
he told a joint news conference with Sarkisian.
Much of Armenia’s budget deficits have for years been covered by
low-interest loans disbursed by the World Bank and financial grants
provided by Western governments. Proceeds from domestic sales of
government bonds and treasury bills still pale in comparison with
donor funding.
Moody’s rating is slightly higher than the one assigned to Armenia
by another famous rating agency, Fitch, in early June. The latter’s
“sovereign credit rating” of BB- indicated a relatively high risk of
doing business. While praising the country’s “impressive economic
performance,” Fitch said Armenian economy remains “vulnerable to
shocks” due to its high degree of dollarization, underdeveloped
financial services and the unresolved Nagorno-Karabakh conflict.
A statement by the Armenian Central Bank quoted the Moody’s
vice-chairman, Sarah Bertin, as citing the same problems hampering
Armenia’s economic development. She said at the same time that Moody’s
analysts believe that a renewed war in Karabakh is unlikely in the
coming years.

Armenian agency calls for clear-cut Middle East policy
Mediamax news agency, Yerevan
24 Jul 06
24 July: On 23 July, all Armenian churches gave prayer for the
restoration of peace in the Middle East. This is quite understandable –
an Armenian community of 120,000 people lives in Lebanon. It is one
of the most united and well organized communities of the Armenian
diaspora.
[Passage omitted: known details about Armenia’s relations with Israel,
Turkey, Iran]
The new spiral of tension in the Middle East is a serious challenge
for Armenia, as Israel and the USA do not conceal that this time they
are going to finally resolve the “Hezbollah problem”. This means that
the new conflict in the Middle East may last long and result in the
direct or indirect involvement of Iran and Syria in it. In this case,
Armenia, which is now implementing the Individual Partnership Action
Plan (IPAP) with NATO, will obviously have to revise some aspects of
its foreign policy.
As back as six months ago, in one of our weekly analytical reports
we expressed doubt as to whether Yerevan has a clear strategy of
relations with the Greater Middle East. Unfortunately, our doubts
have not only disappeared during this time but have strengthened.
The USA does not make it secret that it views the so-called Wider Black
Sea region (including the South Caucasus) as one of the elements of
its “strategic rear” and keeps on indicating to the interdependence
of processes in the Caucasus and Middle East. This makes Russia,
Turkey and some European neighbours of the USA nervous. Such clash
of interests followed by the growing tension over Iran’s nuclear
programme should make the Armenian leadership seriously think over
its place and role in the Great Middle East and work out a relevant
program of action for a long-term perspective.
Speaking about foreign policy immediately after his election as
Armenian president in 1998, Robert Kocharyan said: “We don’t see
the world in black and white colours any longer.” Today, two years
before the end of his terms in office, Kocharyan has a chance to
use the whole scale of available political colours to rule out the
possibility that the echo of today’s explosions in the Middle East
may ever affect Armenia.

Armenian leader, EU envoy discuss cooperation, Karabakh
Mediamax news agency
24 Jul 06
Yerevan, 24 July: Armenian President Robert Kocharyan today received
the special representative of the European Union for the South
Caucasus, Peter Semneby, a source in the press service of the Armenian
president has said.
The two men discussed issues concerning the coordination and approval
of Armenia’s action plan within the framework of the European
Neighbourhood Policy.
Kocharyan and Semneby also exchanged views on the settlement of the
Nagornyy Karabakh conflict and regional development.

Azerbaijan has never left talks table – Azeri FM official
Source: Trend
24.07.2006
Author: E.Huseynov
The recent statement of the Armenian foreign minister Vardan Oskanyan
regarding the issue that “Yerevan hopes that the new American co-chair
of OSCE Minsk Group Mathew Bryza will achieve to convince Azerbaijan
to return to the talks on base of the final proposals of mediators” is
unclear, Tahir Tagizade, the head of the press and information policy
department of the Foreign Ministry of Azerbaijan, told, Trend reports.
“It is possible to say many things, the commentary would be longer
than the word of Oskanyan. It would be to say that Azerbaijan has
never left the table of talks so that it is drawn back to the talks.
The second, finally the talks emerged about the framework document,
although the mediators themselves told that there is no document,
but collection of non-agreed principles. And the third, Armenia has
already started to appeal to the fact that it will be held elections
in Armenia in 2007 and therefore, it is impossible to seriously hold
negotiations,” told Tagizade.

RA DEFENCE MINISTER RECEIVES COMMANDER OF KANSAS NATIONAL GUARDS
AZG Armenian Daily #138, 25/07/2006
Meeting
RA Defence Minister Serge Sargsian received Todd Banting, Commander of
the Kansas National Guard, and the members of the American official
delegation, today. The Press Service of RA Defence Ministry informed
that US Ambassador to Armenia John Evans was also present at the
meeting. In particular, in the course of the meeting, the sides
touched upon the issues of the Armenian-American military cooperation,
focusing the attention on the peace keeping activities and the
sphere of the military medicine. The parties also emphasized the
importance of establishing a sergeant’s institute within the framework
of the Armed forces of Armenia. They also stated the necessity of
establishing cooperation between the military hospitals of Armenia
and Kansas. Banting highly estimated the professional skills of the
Armenian peace keepers in Iraq. He also informed that “Rescuer 2006”
exercises were held at quite a high level.

Armenian, Ukrainian presidents cancel Moscow visit
Agence France Presse — English
July 21, 2006 Friday 11:01 AM GMT
The presidents of Armenia and Ukraine cancelled scheduled visits to
Moscow on Friday for a meeting of leaders of ex-Soviet republics.
“We’re not going,” said Irina Gerashchenko, a spokeswoman for Ukrainian
President Viktor Yushchenko, blaming “the political situation” back
home — where the main parties are locked in a power struggle —
for the cancellation, Interfax news agency reported.
Armenian President Robert Kocharian will also not be able to attend
because “he has a respiratory illness,” an official from Kocharian’s
press office said.
The presidents were due to attend an informal summit of leaders of
the Commonwealth of Independent States (CIS) group of 12 ex-Soviet
republics.
The announcements came after Georgian President Mikheil Saakashvili’s
office said he could not attend because he was busy with a cabinet
reshuffle. Turkmen President Saparmurat Niyazov was also not expected
to attend.
The CIS members are: Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan,
Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine and
Uzbekistan. bur-dt/njc

MEMBER OF PARLIAMENT BELIEVES SERGE SARGSYAN WILL NOT OCCUPY ANDRANIK
MARGARYAN’S PLACE AND WILL NOT RESIGN
Lragir.am
21 July 06
In reply to forecasts that on joining the Republican party with
his administrative and economic resource the defense minister will
gradually take up the role of the formal or informal leader of the
party, Rep. Armen Ashotyan stated July 21 at the Pastark Club that the
Republican Party has a leader, and the powers of the party hierarchy
are set down clearly. Armen Ashotyan said Serge Sargsyan will be
offered the post of the chair of the Council of the Republican Party.
Of course, there is no doubt that the powers of the Republican Party
are set down clearly, but the powers of the government hierarchy
of Armenia are set down equally clearly, which however, did not bar
Serge Sargsyan from having greater powers than the post or posts he
occupies allow. Armen Ashotyan says he is not very close with Serge
Sargsyan and he does not know if his possibilities are greater than the
post. Meanwhile, it is not necessary to be close with Serge Sargsyan
to know this. It is enough to observe which of his possibilities makes
businessmen, heads of communities and other officials announce that
they will be where Serge Sargsyan is.
Or what would happen with the hope of the Republican for becoming
powerful in case the defense minister resigns from his post? “I don’t
think it is possible. Although the president of Armenia appoints
ministers, particularly the minister of defense, I think such a
scenario is not possible, I even think it is impossible.
Political activity and political post do not contradict, and the post
of the minister is political, Mr. Sargsyan is a civilian, who took
up the post of defense minister, two functions, two spheres must be
independent. As a minister of defense, Mr. Sargsyan will work in his
sphere, as a chair of the council of the party he will work in his
sphere,” says Armen Ashotyan.

AZG Armenian Daily #137, 22/07/2006
OSCE Fact Finding Mission
OSCE FACT FINDING MISSION CONFIRM ARMENIANS DON’T SET
ON FIRE BORDERLINE AREAS
NKR Deputy Foreign Minister Masis Mayilian met with
Gunter Volk, Field
Assistant of the Personal Representative of OSCE
Chairman in Office, on July 20.
The press service of NKR Foreign Ministry informed
that Mr. Volk handed the OSCE report on the fires in
the forests near Azerbaijan-NKR border to Mr. Mailian.
At present the report is being studied at NKR Foreign
Ministry. It’s worth mentioning that as a result of
the monitoring activities, the OSCE Fact Finding
Mission found no trace of harm made by the fires to
Azeri settlements near the borders, which was claimed
by Azerbaijan.
By Nana Petrosian

SPAIN BUSTS VEHICLE-STEALING GANG HAVING BULGARIAN PARTICIPATION
Sofia Echo, Bulgaria
July 19 2006
An organised criminal group, responsible for stealing luxurious
vehicles in Spain has been busted.
The group had Bulgarian and Armenian members, an Interior Ministry
press release said.
Interior Ministry experts aided the Spanish police in the operation.
Most group members were Armenians. The group is responsible for a
series of vehicle stealings in Madrid and the nearby areas.
Once stolen, the vehicles were transported through France and Italy
to Turkey. From there, the cars were taken to Armenia.
The group used electronic technology. Gang members worked on false
documents and car numbers, as well as on ensuring transportation for
the stolen vehicles.
During investigation, police found nine stolen luxury vehicles.
One of the Bulgarians detained has previous criminal record. She was
involved in an illegal vehicle trafficking ring previously.

BUILDING OF MUSEUM OF REGIONAL STUDIES OF AKHALKALAK REPAIRED
AKHALKALAK, JULY 18, NOYAN TAPAN – ARMENIANS TODAY. On the initiative
of the Armenian Educational Union of America the building of the
Akhalkalak’s Museum of Regional Studies was repaired. The building
dates back to late 19th century and until the reconstruction it was in
an emergency state, which endangered the exhibits kept in the museum.
According to the Museum’s Director Hasmik Hambarian, now it is
possible not only to keep the exhibits safe, but also it is envisaged
to acquire new exhibits.
“A-Info” agency also informs that on the initiative of the Armenian
Educational Union a number of schools have been recostructed in
Javakhk, and according to the Union’s representatives, this work
will continue.