CBA Leaves Refinancing Interest Rate Unchanged

CBA LEAVES REFINANCING INTEREST RATE UNCHANGED

Noyan Tapan
Dec 06 2006

YEREVAN, DECEMBER 6, NOYAN TAPAN. At the December 5 sitting,
the Central Bank of Armenia (CBA) Board left the CBA refinancing
interest rate unchanged – 4.75%, NT was informed from the CBA
press service. According to the CBA Board, although the inflation
pressures coming from the external sector and related to high
international prices of power bearing substances and some other
goods (particularly granulated sugar) formed this year still remain,
inflation pressures expected to come from this sector in the next 12
months will be milder. A high economic growth continues, mainly in
the construction and service sectors. The expected increase in the
population’s incomes due to the economic development, combined with
growing remittances keep moderate inflation pressures. At the same
time, under conditions of the continuing dramization of the economy
and the seasonal increase in demand for the Armenian dram at the
end of the year, the CBA’s meeting this demand by purchasing foreign
currency will cause a liquidity surplus. The CBA Board takes the view
that neutralization of this suplus is possible at the current level
of the interest rate. If the current prospects of economic development
continue, the CBA Board does not rule out that the interest rate will
be changed in the coming months.

Custom Duty Collection Grows By 11.2% In Armenia In January-October

CUSTOM DUTY COLLECTION GROWS BY 11.2% IN ARMENIA IN JANUARY-OCTOBER 2006 ON SAME PERIOD OF LAST YEAR

Noyan Tapan
Dec 05 2006

YEREVAN, DECEMBER 5, NOYAN TAPAN. In January-October 2006, the RA
state budget’s customs duty revenues made 14.5 bln darms, exceeding
by 11.2% or 1.5 bln drams (about 3.5 mln USD) the respective index
of 2005. According to the RA Ministry of Finance and Economy, in the
first ten months of 2006, fixed payments from certain types of activity
amounted to 12.3 bln drams, exceeding by 17.8% or about 1.9 bln darms
the respective index of last year. The growth is mainly conditioned by
an increase in payments for gasoline filling, transport activity and
organization of public catering and trade facilities. In the period
under review, the state budget’s simplified tax revenues made 6.2
bln drams, growing by 12.1% or 670.8 mln drams on the same period of
last year mostly due to an increase in revenues from trade. During
the first ten months of this year, the budgetary revenues from other
taxes made over 9.8 bln drams.

Particularly, nature use and environmental protection payments amounted
to 5.6 bln drams and road payments – to 2.1 bln drams. Other taxes
grew by 30% or about 2.3 bln drams on the same months of last year,
which was mainly due to an increase in nature use payments and fines
for violation of the tax legislation.

BAKU: Azeri Foreign Minister Discussed Nagorno-Karabakh Conflict Wit

AZERI FOREIGN MINISTER DISCUSSED NAGORNO-KARABAKH CONFLICT WITH CO-CHAIRS OF OSCE MINSK GROUP
Author: E.Huseynov

TREND Information, Azerbaijan
Dec 5 2006

A meeting was held in Brussels between the Azerbaijani Foreign
Ministers Elmar Mammadyarov and co-chairs of the OSCE Minsk Group,
the Head of the Press and Information Policy Department of the
Azerbaijani Foreign Ministry, Tahir Tagizade, informed Trend.

The meeting focused on the present stage of the process of peaceful
settlement of the Nagorno-Karabakh conflict and the plans for the near
future. In addition, despite that the meeting of the Azerbaijani and
Armenian Foreign Ministers were planned, it did not take place due
to the rich working schedule of the Ministers.

Mammadyarov met in Brussels with his Portuguese colleague, as well
as the Chairman of the OSCE Parliamentary Goran Lennmarker.

Syria Invites Armenia To Arab League As Observer

SYRIA INVITES ARMENIA TO ARAB LEAGUE AS OBSERVER

PanARMENIAN.Net
05.12.2006 15:51 GMT+04:00

/PanARMENIAN.Net/ Syria would be glad to see Armenia as an observer at
the League of Arab Nations (LAN), Syrian Temporary Charges d’Affaires
in Armenia Muhlis Farauni told journalists Tuesday. He noted that
three countries – Armenia, Iran and Turkey – expressed their desire to
become observers at the LAN. In his words, Syria can only welcome that
decision of Armenia, which will "more strengthen the Armenian-Syrian
relations without fail." Earlier Armenian FM Vartan Oskanian and
LAN Sec. Gen. Amr Moussa agreed to signed a respective memorandum
on mutual understanding over Armenia’s participation in LAN work
with the status of a special invited party in Cairo or Yerevan,
reports Novosti-Armenia.

Armenia Works For Improvement Of Relations With Turkey

ARMENIA WORKS FOR IMPROVEMENT OF RELATIONS WITH TURKEY

PanARMENIAN.Net
02.12.2006 14:52 GMT+04:00

/PanARMENIAN.Net/ Armenia works for improvement of relations with
Turkey, however it does not accept preconditions put forward by it,
Secretary of the National Security Council at the President of Armenia,
Defense Minister Serge Sargsyan stated Friday, when presented the
draft National Security Strategy of the country. "Armenia works for
improvement of relations with Turkey via establishing contacts both
at the state and non-state levels," the Minister said.

Nevertheless, in his words, Armenia does not accept preconditions put
forward by Turkey for establishing relations. Sargsyan also added
that Armenia also considers the necessity for Turkey to recognize
the Armenian Genocide as restoration of historical justice regarding
the Armenian population of the Ottoman Empire and their descendants,
and ruling out new infringement against Armenia within that context,
reports Novosti-Armenia.

Musician Manuk Haroutiunian Makes Ancient National Musical Instrumen

MUSICIAN MANUK HAROUTIUNIAN MAKES ANCIENT NATIONAL MUSICAL INSTRUMENT CALLED "JUTH"

Noyan Tapan News Agency, Armenia
Nov 29 2006

YEREVAN, NOVEMBER 29, NOYAN TAPAN. Musician Manuk Haroutiunian made
musical instrument called "juth" from maple and pear-tree wood. Juth
is one of ancient Armenian national instruments. As M.Haroutiunian
said in his interview to Noyan Tapan correspondent, various types of
juth were discovered as early as during excavations of Dvin. He gave
assurance that violin and cello origin from Armenia. M.Haroutiunian
is also convinced that in the future juth will become one of the most
important instruments of our folk orchestras.

M.Haroutiunian has been engaged in collecting national instruments
since 1984. He has rather a big collection that includes unique samples
of Armenian national instruments, including Baghdasar Dpir’s saz
(Eastern, as well as Armenian national stringed musical instrument),
pipes brought from Van, Kars, Mush, Levon Madoyan’s duduk, Makar
Yekmalian’s duduk made in 1895, zournas (Armenian national wood-wind
musical instrument, type of flute), zarbs, tars, mandolines, etc. In
his words, his collection was mainly replenished in the 1990-s when
people had to sell instruments having historic value in consequence
of hard socio-economic conditions. In those years the musician
managed to purchase many instruments with great difficulty for them
not to be taken away from Armenia. "I was anxious about preventing
these instruments from appearing in the hands of our too well-bred
neighbors. I am convinced that if our neighbors bought them after
some period of time they would announce that these were not Armenian,
but Azerbaijani instruments," M.Haroutiunian emphasized.

ANKARA: What Is Turkey’s Importance All About?

WHAT IS TURKEY’S IMPORTANCE ALL ABOUT?
Barin Kayaoglu

Journal of Turkish Weekly, Turkey
Nov 27 2006

News agencies recently reported that former German Chancellor Helmut
Schmidt delivered a lecture at Florence last week, arguing that in
contrast to popular thinking, Turkey was not a bridge between Europe
and the Muslim world and that it was in fact disliked in the Arab
world. The heyday of the address allegedly came when Schmidt said
that "it is suffice to remember how Arabs suffered under Ottoman
rule." Because of the Ottoman past, incorporating Turkey would be
counter-productive to the European Union, Moreover, he continued,
Turkey’s EU membership was not in European interests and was indeed
pushed by the United States. [1]

It is important to attend to such questions, especially when they
come from senior statesmen. Let us embark on a mind-quest to figure
out just exactly what Turkey’s "importance" is all about. What do we
really mean by Turkey being a "bridge" or a "model country" to the
Muslim world? Is Turkey really a viable answer to the problems of
the world today? If so, what are those lessons?

Modernizing the state and the socio-economy of the land was one of
the greatest hardships that challenged the Ottoman Empire. Renowned
historian İlber Ortayli calls the 19th century the "Empire’s
Longest Century." Ottoman reforms, even though always intended to
modernize the armed forces first, extended to other aspects of the
Empire’s life: a secular legal system, a new education system, female
emancipation, the advent of a lively press and intelligentsia all came
about during the 19th century. It was during the 19th century that the
power of the sultan was legally curbed through a constitution. This
was extremely significant, one should bear in mind, because the
Ottoman sultan held the title of caliph, the nominal successor of
the Prophet Mohammed. What really happened with the Ottoman example
was the limitations imposed to the authority of an Islamic absolute
monarch who was believed to hold divine right.

For those who study political science or European history, there is
nothing new here. But it was a historic precedent for a Muslim empire
to witness the rise of a parliamentary and constitutional system.

Ottoman constitutionalism, for sure, was not trouble-free. Sultan
Abdulhamid II suspended the constitution and kept the parliament shut
for over thirty years from 1877 until 1908.

Another very important element of the Ottoman experience was what
has been dubbed Pax Ottomana (Ottoman peace). As can be inferred
from the name, this system involved the peaceful co-existence of
different nations under Ottoman imperial rule. The central government
did not interfere with the intra-ethnic workings of its constituent
communities and sustained a multi-cultural social order until the
very end. Pax Ottomana ultimately collapsed, with tragic consequences:
present-day Middle East and Balkans, as well as the mutual headaches
between Turks and Armenians are but a few of these.

The peace and tranquility that the Ottomans delivered to the Balkans
and the Middle East remain to be resuscitated.

The Ottomans had the greatest misfortune of being on the losing side
at the end of World War I. Faced with an ominous partition, Turkey
managed to negotiate a more fair peace treaty with the Allies thanks
to its successful conclusion of its War of Independence in 1922 under
the leadership of its founding father, Mustafa Kemal Ataturk.

Volumes have been written on Ataturk’s legacy. There are but two very
important points to bear in mind about that legacy: democracy and
secularism. One of the virtues of Ataturk – and there were many of
them – was that he was a great visionary. He restructured the Turkish
political system in such a way that despite all of the challenges,
it has been able to remain both democratic and secular and adapt
to changing global dynamics. Secularism, the separation of church –
well, in Turkey’s case mosque – and state, has been the core element
through which Turkish society has been able to safely practice its
myriad religious aspirations. For their part, Turkish statesmen have
had an easier time in running the state as secularism freed their
hands from addressing religious concerns and allowed them to operate
pragmatically in the realm of politics. In other words, secularism
has empowered Turkey.

Democracy has also been a blessing for Turkey. Since the establishment
of the Republic in 1923, Turkey has always claimed to be a democracy
of some sort. This claim was realized in the late 1940s with the
advent of multi-party politics and an extension of the boundaries of
freedom of expression. Those years were marked by incessant political
turmoil and economic instability but today Turkish people elect
their representatives and despite all the problems that trouble the
country, such as poverty and the inadequacy of public services, they
remain hopeful. In spite all of its deficiencies, Turkey sustains
a vibrant civil society and press which exert a remarkable degree
of influence over the state. Democracy, just like secularism, has
empowered Turkish people.

One should aviod the trapdoor of self-righteousness, however. The setup
of the Directorate of Religious Affairs (Diyanet İşleri
Başkanligi – which does not sponsor non-Sunni Muslim places
of worship) and the remaining obstacles to free speech (such as the
hideous article 301 of the penal code) are still formidable setbacks
for Turkey. The solution to these problems are not intractable,
nevertheless. The inclusion of other major religious parties in
the country -the leaders of Alawite foundations, Greek and Armenian
Orthodox patriarchs, and the Chief Rabbi – would not only enrich the
intellectual aura of divinity schools and the Directorate itself,
but also grant tremendous legitimacy to the state’s supervisory role
over religion. As for freedom of expression, it has been stated time
and again in this column to view free speech not as a danger, but as
one of Turkey’s most important allies. Anybody who wishes to disagree
with anything – with the caveat that they do not espouse violence –
should have their say. That is the best and luckily the only option
before Turkey.[2]

Notwithstanding these nuisances, any objective commentator must
appreciate the democratic and secular character of Turkey. Turkey
is the only country that combines the elements of being Muslim,
democratic, and secular. This is a unique thing in the world today.

No other Muslim country has managed to combine these three
characteristics yet.

The question is, then, as to what can be done in a turbulent world.

Many people would agree that there is a significant democratic
deficit in Muslim countries today. We cannot afford to ignore this
problem that has global ramifications. Lack of proper governance in
distant parts of the world affects each and every member of the global
community. The answer to that problem is to empower Muslims around the
world. The only way to do that is to follow Turkey’s example. Islam is
not inherently in conflict with modernization. The problem is not with
Islam but with how Muslims interpret it. We ought to realize that not
only are secularism and democracy not in contradiction with Islam,
but they in fact augment it. Turkey is the case in point. For the
past 80 years, and even before that, religious tension has not been
a major issue in Turkey. Turkish people enjoy both the pleasantries
of mundane life while practicing their religions freely.

Perhaps the statement by Prime Minister Mr. Tayyip Erdogan’s former
senior advisor sums all of what has been said so far. About a year
ago, Mr. Omer Celik stated that secularism was the greatest power
("nuclear" power, as he put it) which Turkey had in comparison with the
Middle East. The Republic’s secular and democratic characteristics,
according to Celik, were proof that Turkey’s political ideals were
compatible with those of Europe.[3]

Turkey is at a critical juncture in its accession negotiations
with the EU. Those who follow this column already know that I have
lost my enthusiasm for Turkey’s EU membership. But it would be too
foolish to deny the fact that there is still a historic opportunity
before the EU and the West. By faithfully negotiating with a Muslim
country that has been a part of Europe for centuries (bear in mind
that the Ottoman Empire was a European power even more than a Middle
Eastern one), the EU and the West have it within their grasp to turn
to other Muslim countries around the world and convincingly make the
case that there are genuine benefits by joining the global community
through democratization and secularization. This appeal will not be
easy and that Turkey will probably not join the EU. Nevertheless,
by accepting Turkey as a legitimate partner, European countries can
counter most of the criticisms that they are Islamophobic. Following
Turkey’s example, Muslim countries will finally ease their suspicions
in their dealings with the West.

Turkey is the best asset that Europe can hope to incorporate in
the brave new millenium. The European Union with Turkey would serve
European interests more than Turkish interests in the long run. The
decision to walk that bridge is for Europeans like Helmut Schmidt
to decide.

+++

24 November 2006

Barin Kayaoglu is a Ph.D. student in history at the University of
Virginia in Charlottesville, Virginia and a regular contributor to
the Journal of Turkish Weekly.

E-mail: [email protected]

[1] "Schmidt: Turkiye Kopru degil" (Schmidt: Turkey is not
a bridge), ntvmsnbc.com, November 18, 2006; available from

[2] Barin Kayaoglu, "Turkey’s Allies are Common Sense and Freedom of
Expression," Journal of Turkish Weekly, October 25, 2006; available
from

[3] "Laiklik Turkiye’nin elinde nukleer guc gibi" (Secularism is
like nuclear power for Turkey), Sabah, October 13, 2005; available
from

http://www.ntvmsnbc.com/news/391283.asp.
http://www.turkishweekly.net/comments.php?id=2339.
http://www.sabah.com.tr/2005/10/13/siy102.html.

Salary is evidence but also the only legal thing

Lragir, Armenia
Nov 24 2006

SALARY IS EVIDENCE BUT ALSO THE ONLY LEGAL THING

On November 27 the National Assembly is going to discuss the state
budget bill and decide what to do with it. There is no need to worry
about the budget. We may even be sure that this bill will be passed.
And not because it will be discussed on November 27. This date is
highly mystical. It is a time when nobody does anything, but as a
result something happened. For instance, nobody votes to the
referendum on Constitution, but it turns out that the referendum was
adopted with queues of voters everywhere. So, in the end it may turn
out that the members of the parliaments of the previous convocations
came and voted for the budget. The government perhaps chose the day
of the extraordinary meeting on purpose in order not to have the
members of parliament control the situation. The bill on
expropriation taught a good lesson to the executive, and even if
Tigran Torosyan is not in the parliament, an important document such
as the budget should not be exposed to risk.

However, the government need not worry. Even if the budget is not
passed, no one in the country will feel that there is no budget. Of
course, the pensions and benefits, as well as the salaries of
state-financed workers may be endangered. However, today it is
impossible to live on the benefit or pension of the budget, and the
state-financed workers would even be happy if their salary was not
paid from the budget. The point is that the salary fills them with
remorse. For instance, the doctor whose salary is raised by the
government feels remorse when he takes the fee from the patient,
because thus the patient pays the doctor twice: first, through the
budget, as a taxpayer, and second, in cash, as a customer. Meanwhile,
the doctor would be happy to get only from the hand of the patient.

The government raises the salary of the teacher ruthlessly, whereas
the teacher would be happy not to get a salary at all. Thus he would
have more moral rights to ask money from the students or their
parents for curtains, brooms, vaccum cleaners, tablecloths, the
graduation ball, the first love, and the like, or accept their gifts.
Whereas now the teachers undergo a stress when they learn that the
students leaving school or the first-grade schoolchildren have a
small gift for them, such as a golden ring or a dinner.

Let alone the high-ranking and not so high-ranking public officials,
who get their salary from the state budget. Busy with a state
business of a particular importance, they have no time to go to the
government and officially reject the salary. The point is that the
salary is real evidence for the prosecutor. You can judge yourselves.
When someone sees how an official lives, he is amazed how he can live
such a luxurious life on his small salary. They start doubting, and
it is possible that they will be charged one day, like Member of
Parliament Hakob Hakobyan.

But when the official does not get a salary, besides preventing
doubts he also has an `extenuating condition.’ For instance, if a
public official does not get a salary but works, it means he is doing
a favor for the state and the public by serving for free. And the
public and the state will by all means appreciate him. The same
example: if Hakob Hakobyan had rejected the salary for all these
years, they would have certainly pardoned all the tax breaches he is
accused of.

However, strangely enough nobody learns from Hakobyan’s case and
rejects the salary he gets from the state budget. On the other hand,
they are doing the right thing. After all, their only tie with the
law is their salary, and if they reject it as well, even the best
lawyer will be unable to save them. Therefore, the budget is
necessary, and the members of parliament will vote for the budget,
even if it is not November 27.

HAKOB BADALYAN

T. Papadopoulos says Cyprus to Support Armenia in EU Neighborhd Prg

Armenpress

TASSOS PAPADOPOULOS SAYS CYPRUS TO SUPPORT ARMENIA IN
IMPLEMENTATION OF EU’S NEW NEIGHBORHOOD PROGRAM

NICOSIA, NOVEMBER 23, ARMENPRESS: A wide range of
issues was discussed today during the face-to-face
meeting of the Armenian and Cyprian presidents Robert
Kocharian and Tassos Papadopoulos and at the extended
meeting which followed after it.
During the negotiations an agreement on fighting
against organized and other crime manifestations has
been signed and the task groups have been assigned to
develop concrete proposals and programs for boosting
the cooperation.
At the press conference which followed after the
negotiations the presidents of the two countries
particularly pointed out the warm and productive
atmosphere maintained during the whole process of
negotiations. `We had a very productive discussion and
tried to give practical solutions and suggestions,’
Kocharian said. The President of Cyprus Tassos
Papadopoulos noted that both during personal and
official meetings the Cyprian side assured the
Armenian president that it is ready to boost bilateral
friendly relations between the two countries and
expand the cooperation.
`Cyprus must speak in favor of Armenia in all the
international and political issues,’ the Cyprian
president stated. In the implementation of agreements,
the president underscored the role of the Armenian
community, which, according to Papadopoulos, is a
high-level community and is leading in all the
spheres. `The relations between our peoples and
countries are very warm and there exists an effective
dialogue which we tired to expand today particularly
in the economic sphere,’ the Armenian president noted.
According to Kocharian, Armenia and Cyprus have
always defended each other in different international
establishments. He said today Armenia has great
expectations in respect of acquiring experience of
Cyprus in the implementation of reforms within the
frameworks of the EU’s New Neighborhood Policy. The
Cyprian side has expressed readiness to support and
cooperate with Armenia in this field. `From the very
first moment Cyprus was for the inclusion of Armenia
in the EU’s New Neighborhood program, which supposes a
great number of reforms. We are ready to support in
their practical implementation,’ the Cyprian president
said.
The reporters present at the conference were
interested what approaches the sides have over the
process of Turkey’s membership to EU. `Turkey has
assumed these commitments on its own wish. All the
countries agree that Turkey must implement its
commitments but at the same time they do not want
negotiations be suspended. Punitive measures must be
undertaken to show Turkey that it must be
conscientious. At present it is being discussed what
punitive measures must be undertaken,’ president of
Cyprus said. According to Robert Kocharian, Armenia is
interested in the issue as it is connected with the
readiness and wish of Turkey to regulate its relations
with the neighboring countries, including Armenia. `It
is important whether the process of membership of
Turkey will be conducted fully or not. This will
directly influence on Armenian-Turkish relations,’
Armenian president said.
On response to the question about the position of
the Armenian president over Turkish-Cyprian relations,
Kocharian said that Armenia has many times stated in
the international organizations its position. `We
would like to see the Cyprus issue regulated in the
way the Cyprian people and government is picturing
it,’ the Armenian president said. Kocharian said that
he has invited his Cyprian counterpart to visit
Armenia next year.
Armenian president also met today with the Chairman
of the Cyprian House of Representatives Demetris
Khristofias. The latter said that they have reached
agreement over consolidation of political partnership,
expansion of legislative cooperation which will bring
to the development of cooperation in economic,
cultural, tourism and other spheres. `Good ties exist
between the parliaments of the two countries but it is
necessary to carry out more effective work for
developing them more,’ Demetris Khristofias said at
the press conference that followed the meeting.
Referring to the recognition of the Armenian
Genocide by Turkey on its way to the EU, the president
of Armenia said, `The process of coming into terms
with the own history is a way which people must pass
on their own. We hope the process of membership to EU
will bring to the state when the discussions over this
issue in Turkey will be more open and the
intellectuals and society will have an opportunity to
express themselves freely,’ Kocharian said.
Within the framework of the visit the members of
the delegation also had separate meetings with their
Cyprian partners. Particularly Armenian deputy
foreign, trade and economic development and culture
and youth affairs ministers met with their
counterparts and discussed with them prospects for the
development of cooperation.
Gagik Gyurjian, deputy culture and youth affairs
minister, noted that during the meeting an agreement
has been reached over the all-encompassing program on
cooperation in the cultural sphere for 2006-2008.

Number Of Tourists Visiting Armenia To Increase By 20% Amounting To

NUMBER OF TOURISTS VISITING ARMENIA TO INCREASE BY 20% AMOUNTING TO 380,000 BY END, 2006
By Ara Martirosian
AZG Armenian Daily
23/11/2006
The number of tourists, visiting Armenia per year, will increase by
18-20% and amount to 370,000-380,000 by the end, 2006, as compared
with the data of the same period in 2005, Ara Petrosian, RA deputy
minister of trade and economic development, said at a press conference.
He said that 272,000 tourists have visited the country for Jan-Sep,
2006, against 230,000 for the same period in 2005. Petrosian
noted the inflow of tourists within the next 4-5 years will grow by
20-25%. Meanwhile, according to Petrosian forecasts, 500,000 tourists
will visit Armenia in already 2-3 years. He said that activation
of the inner tourism for the last years is conditioned by several
factors, in particular, the development of tourism infrastructures,
increase of the level of services, rendered to the tourists. From
this viewpoint, Petrosian noted that if there were 2 hotels with
international standards in the country 7-8 years ago, this indicator
grew to 20, at present.
Besdies, he informed that 5 new hotel objects have opened in
Armenia within this year, in particular, in Yerevan, as well as in
such towns as Goris, Tsakhkadzor and Sevan. Moreover, Information
Center for Tourism functions in Dilijan since November 14 within
the framework of the USAID program “Competitive Armenian Private
Sector”. A. Petrosian underlined that correct presentation of the
country’s tourist potential in the international market by means of
participation in tourist exhibitions, advertising also contributes
to the development of Armenia’s home tourism. He emphasized that
the American CNN is broadcasting the country’s tourism by means of
2 advertising spots since September 2006.