Author: Karapetian Hovik

RATING ASSIGNED TO ARMENIA CAN BE CONSIDERED QUITE GOOD: INTERVIEW WITH CB CHAIRMAN

ARKA News Agency, Armenia
June 7 2006

Exclusive interview given to the ARKA News Agency by Chairman of the
Central Bank of Armenia Tigran Sargsyan.

ARKA: Mr. Sargsyan, would You comment on Armenia’s getting the
credit rating?

T. Sargsyan: Armenia will appear on the world’s financial map as
early as now, and all the potential and real market participants, as
well as investors, will see Armenia on this map with its sovereign
rating. This will help everybody form the idea of the economic and
political situation and on the country’s credit worthiness. Besides,
this also means that in the future we must implement all our
national and investment projects to make the country more attractive
to investors. On the other hand, it is a unique chance to get an
impartial estimation of the real situation in our economic, political
and social life.

ARKA: What do You think, does the “BB-” rating assigned to Armenia
reflect the real situation in Armenia’s economy, its political risks?

T. Sargsyan: The Fitch Company is a rather well-known company – it is
among the three best known companies along with Moody’s and Standard
Poor’s, and we cannot ignore their authoritative opinions. We just
should consider the parameters, the strong and weak points reflected
in the report for the Armenian authorities’ further actions to be
aimed at gradual rise in the rating. Of course, we would like to get
a rating much higher than “BB-“. Any country seeks a better rating
and a more favorable situation on the financial map of the world and
for investors.

ARKA: What are the current ratings of our closest neighbors in
the region?

T.Sargsyan: Georgia’s rating is one mark lower than Armenia’s,
and Azerbaijan’s is one mark higher. However, there are a number of
peculiarities. First, ratings agencies seem to initially display a
more conservative approach to estimations, which is quite reasonable.

Azerbaijan started from a much lower rating that we did. So, since we
are just starting this process, it is quite a good start compared with
Azerbaijan. Besides, we think that we have a sufficient potential for
further gradual rise of Armenia’s rating. In general, Armenia is at
the same level with Turkey and Brazil, and the “BB-” rating assigned
to our country can be considered quite good for a start.

ARKA: When can the rating be revised?

T. Sargsyan: This is continuous monitoring, which will be conducted in
future as well. If any radical changes occur in our life, estimation
parameters serious change, that is, serious progress takes place,
the rating will mechanically be raised or lowered.

ARKA: What is the benefit of Armenia’s banking system from the country
rating? What opportunities and prospects open up?

T. Sargsyan: First, with the country rating available, commercial
banks can directly get their own ratings by means of rating agencies,
which is of high importance for us. In turn, rating agencies themselves
will find it much easier to work with commercial banks and enterprises
wishing to get ratings. As regards investors, they will be enabled to
really estimate the ratings of the country and of Armenian companies,
including commercial banks, and form a real idea of the state of
affairs not only in the country, but also in particular banks, which
can become their potential partners.

ARKA: Rating also implies the possibility of issuing bonds. How
promising is this for Armenia?

T. Sargsyan: This issue has been discussed by RA Premier-headed Supreme
Economic Council. Later, Armenia will enter the international financial
markets with its securities. However, it is inadvisable during the
next two years, because out medium-term financial program does not
yet envisage such measures. That is, we do not yet have to attract
funds for the country’s needs.

In future, depending on the progress of our reforms, particularly on
the progress of our programs with the WB and IMF, and if the rates
of economic growth are as high as now in two years, this task, I
think, will be a topical one – not only for attracting funds for the
Government’s needs, but, first of all, for demonstrating Armenia’s
solvency and credit worthiness and for confirming its rating. And
this attitude to the foreign debt may in principle contribute to the
rise of our rating.

ARKA: What are Your comments on the situation on Armenia’s foreign
exchange market? Will the dram revaluation continue or is it a
temporary process?

T. Sargsyan: One of the weak points, which is indicated by the Fitch
Company in estimating our rating, is a high dollarization level in
Armenia. In turn, this means that we have serious chances to get
our country rating raised. The only thing required is to reduce the
dollarization level, which means that we must change our people’s
way of thinking and attitude to the national currency.

For most of us the national currency must be not only the principal
means of payment, but also a means of saving. Our major problem is
smooth dedollarization during the next 2-3 years. Armenia’s citizens
must give priority to the national currency. Exchange rate fluctuations
will be less appreciable, and the population will be less sensitive
to them.

If get the population’s main incomes and expenses to be in the national
currency, and the national currency’s purchasing power to be estimated
in conformity with the price rise, we can then speak of rather serious
progress. And that will inevitable reflect on out country rating.

ARKA: What is Your estimate of Armenia’s macroeconomic indices over
the last five months?

T. Sargsyan: Early this year we had some fears of the accumulated
inflation potential. The CBA aimed at toughening the monetary policy.

I think that these measures, along with the RA Government’s decision
on gradual rise in gas prices, proved rather effective, as they
considerably reduced the accumulated potential. Now we are within the
planned indices. The inflation level is under control as well. The
rates of economic growth inspire optimism. We think that the results
of the first five months will allow us to forecast that we will be
able to close the year with inflation within 3% and two-digit GDP
growth.

BLACK SEA STATES AGREE ON STRENGTHENING REGIONAL TIES

Gulf Times, Qatar
June 6 2006

BUCHAREST: Leaders of states around the Black Sea committed during a
summit in Bucharest yesterday to work together on regional problems
such as organised crime, security, energy supplies and economic
development.

The nine states also called on the European Union to get more involved
in the region, where many countries are struggling to forge closer
ties with the West as they move away from Russia’s orbit.

“The Black Sea region now has a chance to become an attractive partner
for the main centres of economic power if it is capable of transforming
itself from a source of problems into a source of solutions for
Europe,” Romanian President Traian Basescu told the meeting.

But they made little progress in outlining an end to several
territorial disputes which stem from the messy dissolution of the
Soviet Union and cloud the prospects for stability in the region,
also known to be a major illegal trafficking area.

“We announce the launch of the Black Sea Forum for Dialogue and
Partnership, a process that will serve as a regional platform … to
define a common vision of democratic and sustainable development,”
the countries said in a declaration, which was not signed by Russia.

“The Forum will provide a framework for generating new ideas …

encouraging regional co-operation in crisis management,” said the
nine states including EU candidates Romania and Bulgaria, as well as
Armenia, Azerbaijan, Georgia, Greece, Moldova, Turkey and Ukraine.

The EU, which is looking for alternative routes for energy supplies
throughout Asia, welcomed the agreement, urging regional leaders to
take action on organised crime and territorial conflicts.

“Our aim is to see a stable, democratic region here … to help
fight human trafficking, (the) transit of drugs, to prevent weapon
smuggling,” said Peter Semneby, EU special representative for Caucasus
and central Asia.

But presidents of Armenia and Azerbaijan, locked in a dispute over
the Nagorno-Karabakh territory, appeared to be no closer to resolving
the conflict.

Nagorno-Karabakh is internationally recognised as part of Azerbaijan
but under the de facto control of ethnic Armenian separatists and
has been a scene of conflict in which about 35,000 people were killed.

BLACK SEA FORUM FOR DIALOGUE AND PARTNERSHIP STARTS IN BUCHAREST

AzerTag, Azerbaijan
June 6 2006

The Black Sea Forum for Dialogue and Partnership initiated by Romania
commenced June 5 at the Romanian Parliament in Bucharest. The forum
was attended by President of Azerbaijan Ilham Aliyev.

Opening the forum Foreign Minister of Romania Mihai Razvan Ungureanu
reported on the agenda.

Then, the forum participants got involved in discussions dealing with
“The Black Sea Region in the European and global context”. Most
of speakers highlighted the need to settle existing conflicts in
the former Soviet Republics as they are seen as impediment for
the regional development and globalizing world. At the same time,
forum participants stressed the importance for the Black Sea region
countries to combine their efforts in order to expand economic,
political, cultural cooperation.

After the break, the forum continued its work with participation
of the Heads of Azerbaijan, Romania, Georgia, Ukraine, Moldova and
Armenia as well as representatives of Turkey, Bulgaria and over 10
other countries.

Speaking at the meeting focused on “The Black Sea Forum: new ideas,
new commitments, new instruments”, President of Romania Traian Basescu
welcomed the participants and guests and said that this forum is very
useful in terms of drawing world community’s attention to the Black
Sea region. He said the forum offers a platform for open dialogue in
order to promote regional cooperation, solidarity, transparency and
democracy. The forum aims to contribute to the peace and stability
in the Black Sea region. To this end, six heads of states as well
as senior officials of the European Union, Council of Europe, NATO
and other international organizations and representatives of over
10 countries were invited to this event. Over 400 non-governmental
organizations show great interest in the event and over 350 local
and foreign media outlets cover the forum’s activities.

President of Azerbaijan Ilham Aliyev delivered a speech during
the forum. The Head of State touched upon Azerbaijan’s economic
development, involvement in international projects and the work that
has been done towards integration into the European structures.

President said that implementation of Baku-Tbilisi-Ceyhan and
Baku-Tbilisi-Erzerum oil and gas pipeline projects is of great
importance for the world, in particular, European and Black Sea
region countries and found a need to create regional transport
infrastructure. Speaking of the Armenia-Azerbaijan, Nagorno-Karabakh
conflict President Ilham Aliyev once again revealed Azerbaijan’s
fair stance on this matter and said that 20 percent of Azerbaijani
territories are occupied by Armenia and over a million Azerbaijanis
became refugees and IDPs as a result of the policy of ethnic
cleansing. According to the President, this problem should be settled
in line with international legal standards.

President of Azerbaijan stressed the importance of the forum, saying
that discussion were very fruitful at the event. Then, he expressed
his gratitude to the organizers of the event.

The forum was also addressed by Presidents of Armenia, Georgia,
Moldova and Ukraine as well as Ivailo Kalfin, Deputy Prime Minister
and Minister of Foreign Affairs of Bulgaria, Besir Atalay, Minister of
State, Turkey and other top officials. The speakers highly assessed the
forum and highlighted the need to find a solution to some important
issues.

In conclusion, a joint declaration for the Black Sea Forum for Dialogue
and Partnership was adopted.

ARMENIA WELCOMES WINNER OF CHESS OLYMPIAD

Armenpress
Jun 06 2006

YEREVAN, JUNE 6, ARMENPRESS: Thousands of Armenians and tens of senior
government officials gathered early morning on June 6 in a downtown
Yerevan Freedom square to give a hearty welcome to Armenian men chess
players who have won the gold of the Turin Chess Olympiad.

The six men are Levon Aronyan, Vladimir Hakobian, Gabriel Sarkisian,
Artashes Minasian, Smbat Lputian and Karen Asryan. They were taken
from the airport to the square and driven through the crowd by a
Soviet time Chayka car.

Addressing the crowd defense minister Serzh Sarkisian who is also
president of the Armenian Chess Federation said. “Our chess players
have managed to justify our nation’s hopes.” Thirty-three years
thousands of Armenians had been on this very square to welcome Tigran
Sarkisian, after he won the world chess championship. The today’s
welcome ceremony was followed by a concert and a firework.

The 37th Chess Olympiad in Turin ended on Sunday.

Rapid draw by the Armenian men’s team against Hungary assured it
Olympic Gold. China took Silver in the men’s section and USA Bronze.

Today, Azerbaijan
June 3 2006

Armenian MP thinks any document to be signed in Bucharest will meet
Azeri interests

03 June 2006 [15:00] – Today.Az

“Any document to be signed between Azerbaijan and Armenia presidents
in Bucharest on Nagorno Garabagh conflict regulation will be in favor
of official Baku,” stated Armenia Democratic Party’s chairman, MP
Aram Sarkisian.

According to his words, since exact agreement formula was not found
between the sides, signing of any document is inadmissible in the
present situation.

“Ilham Aliyev has stated for several times that Nagorno Karabakh will
remain within composition of Azerbaijan, with these terms Armenia
will lose if signs an agreement. OSCE Minsk Group co-chairs propose
stationing of peacekeepers in the region, but it is not within the
concern of Armenia.”

It should be noted that, the next meeting between Azerbaijan and
Armenia presidents will be held in Romania tomorrow.

Before the meeting foreign ministers of countries, OSCE Minsk Group
chairman, Foreign minister of Belgium Karel de Gucht, OSCE Minsk
Group co-chairs and OSCE chairman in-office Andrzey Kasprzyk will
agree the issues once again which will be discussed in the meeting,
APA informs.

URL:

ARTUR AGHABEKIAN: TARGET SHOTS HAVE BECOME ACTIVE RECENTLY

Noyan Tapan
Armenians Today
May 31 2006

YEREVAN, MAY 31, NOYAN TAPAN – ARMENIANS TODAY. The Armenian side has
repeatedly expressed its concern over violations of the cease-fire,
and although there have always been shots after the cease-fire, target
shots have become active recently. RA Deputy Minister of Defence
Lieutenant General Artur Aghabekian stated this during a talk with
reporters in the RA National Assembly on May 31. According to him,
as a result of such a target shot, Sergeant-Major Levon Adamian,
a serviceman for a fixed period, died on May 27 while on duty.

The deputy minister noted that the RA Ministry of Defence constanly
informs the OSCE group on contact-line monitoring about each fact of
cease-fire violation. The group conducts monitoring regularly, as
well as in case of an obvious violation of the cease-fire. He said
that there have been cases when the monitoring group has presented
facts about a violation of the cease-fire by the Armenian side.

NAGORNO-KARABAKH CONFLICT MUST BE SOLVED THROUGH DIALOGUE – FM
by Kseniya Kaminskaya, Diana Rudakova

ITAR-TASS News Agency
May 29, 2006 Monday

Russian Foreign Minister Sergei Lavrov said on Monday that the
settlement in the mostly Armenian populated Azerbaijani enclave of
Nagorno-Karabakh should proceed “in a dialogue with efforts of the
world community”.

“These efforts should be made within the framework of a peace
settlement,” Foreign Minister Lavrov noted. The sides have started
settling the conflict “and it is counterproductive to exert pressure
on them,” he added.

In reply to a query whether Russia has fulfilled its commitments on
the pullout of a peacekeeping contingent from the Dniester Region,
the foreign minister said “Russia has fulfilled its commitments to
the world community in the Dniester Region”.

However, according to the minister Chisinau “is not inclined to solve
the problem constructively, and has imposed an economic blockade”.

“We don’t support such measures by Chisinau,” the top Russian diplomat
emphasized.

32 000 PEOPLE LEFT FOR ABROAD TO FIND WORK

A1+
[01:39 pm] 31 May, 2006

The main work of the population of the Gegharqounik region is
agriculture, small and medium business, fishing, service in the
tourism field, state and social service and work abroad.

According to statistics, the majority of the population engages
in agriculture. There are more than 42 thousand major agricultural
economies in the region. The rest struggles hard against poverty.

Another way of combating poverty is work abroad.

At present 32 000 people from the region are working abroad. Their
age ranges between 22 and 55. According to the investigations of the
Gegharqounik regional agency of the strategy national service, this
phenomenon is conditioned by the absence of jobs and low profitability
of agriculture.

TV Company “Qyavar” of Gavar

RA FOREIGN MINISTER TO PAY TWO-DAY OFFICIAL VISIT TO KAZAKHSTAN

Noyan Tapan
Armenians Today
May 30 2006

YEREVAN, MAY 30, NOYAN TAPAN – ARMENIANS TODAY. On May 31, RA Foreign
Minister Vartan Oakanian will pay a two-day official visit to the
Republic of Kazakhstan. RA Foreign Minister will have meetings with
President of Kazakhstan Nursultan Nazarbayev and Foreign Minister
Kasimzhomart Tokayev in Astana. On June 1, RA Foreign Minister will
speak at the Diplomatic Academy of Kazakhstan.

In the evening the same day Vartan Oskanian will leave for Almati
where on June 2 he will meet with the representatives of the local
Armenian community.

As Noyan Tapan was informed from RA Foreign Ministry Press and
Information Department, Vartan Oskanian will return to Armenia on
June 2.

PRESENT ANTHEM CAN ADOPTED AS NEW ANTHEM

In accordance with Article 117 of the Transitional Provisions of the
new Constitution of Armenia, a new anthem of the Republic of Armenia
must be adopted within a year. Within this time the old anthem remains
in effect.

It not marked anywhere in the Constitution that the present anthem
cannot be adopted as a new anthem. In other words, all the fuss about
the anthem and its possible change is partly the consequence of
unawareness and is, therefore, caused artificially. Unfortunately,
news reporters supposed to inform the public, and certain political
figures aspiring to become leaders the society are distinguished by
their unawareness.

Thus, `new’ does not necessarily mean defying the existing one. In
addition, in any sphere the defiance of the old one, perception of the
new, combination of new-old surely leads to the loss of something.
Moreover, the change of the anthem is not the prime challenge of the
state and the society. On topof all, in the modern history of Armenia
two cases were reported when the acting one became the new one. The
presidential elections in 1996 and 2003are meant. Like with regard to
the anthem, both in 1996 and 2003 some people were hopeful that the
acting would not become new. The others had an opposite opinion. But
the acting became the new. By the way, people who were against having
the acting become the new both in 1996 and 2003, think differently
now. For although a head of state is a symbol of the state like an
anthem or an emblem, he or she is, nevertheless, personified, and can
give guarantees and other things from him in return for
expression. However, if the presidential election is a regular event,
held once in five years in our country, for the anthem, there is no
such obligation. And there is no need to make a fuss, especially if
there is a perception that the present anthem can work for another 30
years. Or until the anthem becomes the greatest and most complicated
problem of Armenia.

Hence, people who deal with the hasty change of the anthem remind me
of a builder who has not built the roof yet but is already decorating
the walls.
ARAM ZAKARIAN