Author: Nahapetian Samvel

U.S. MINSK GROUP CO-CHAIR ISSUES STATEMENT ON COMMITMENT TO SECURING PEACEFUL SETTLEMENT OF NAGORNO-KARABAKH CONFLICT

US State News
June 23, 2009 Tuesday 5:50 PM EST

YEREVAN, Armenia, March 10 — The U.S. Embassy issued the following
statement:

The United States Co-Chair of the OSCE’s Minsk Group shares with its
fellow Co-Chair countries and all Minsk Group members a commitment to
securing a peaceful settlement of the Nagorno-Karabakh conflict. If
it is to be just and lasting, any such settlement must be a mutually
agreed balance of the Helsinki Final Act’s key principles of non-use
of force, self-determination, and territorial integrity. It is the
fundamental mission of the Minsk Group Co-Chairs to help the parties
negotiate this balance. They have proposed a set of Basic Principles,
outlined in their Madrid Document, which can achieve this difficult
but crucial goal.

NASDAQ OMX ARMENIA CONDUCTS INVESTOR RELATIONS SEMINAR, SORPORATE GOVERNANCE WORKSHOP

ARKA
June 23, 2009

YEREVAN, June 23. /ARKA/. The Investor Relations and Corporate
Governance seminars were organized in Yerevan jointly by NASDAQ OMX
Armenia and the Partners for Financial Stability (PFS), a program
run by USAID and the East-West Management Institute.

As ARKA was told in the department of marketing and communications
of the NASDAQ OMX Armenia, as one of its primary objectives, the PFS
Program assists countries in Central and Eastern Europe to accelerate
financial sector development and reform based on best practices
as well as international standards, promoting integration into the
European and international economic systems.

The Investor Relations (IR) seminar held on June 17 gathered nearly 60
representatives of all capital market stakeholder groups, including
issuers listed and admitted to trading on NASDAQ OMX Armenia, stock
exchange member banks and investment companies, business journalists,
as well as the Central Bank of Armenia.

Speakers, both local and invited from the United States, Poland, and
Estonia, covered a variety of topics such as importance of IR in modern
corporate environment, IR development trends in Europe in the past two
decades, information disclosure requirements that exist in European
countries and Armenia, channels and tools used for communicating with
investors, Baltic market experience in promoting the development of
the com panies’ IR function and rewarding IR outperformers.

A survey of websites of Armenian companies listed or admitted to
trading on NASDAQ OMX Armenia was also presented, focusing on how
their online IR practices compare to those of peers in various European
and CIS countries.

It was concluded that, even though investor relations is a relatively
new area of activities in Armenia, it is not neglected by Armenian
companies and will continue to receive increasing attention from
businesses that want to raise capital in the market.

The Corporate Governance workshop was held on June 19, 2009
and was attended by over 20 participants, primarily financial
journalists. During the workshop a corporate governance case study
was presented, which helped emphasize the importance of transparency
and good governance practices in companies.

Evidence from multiple sources was used to demonstrate that investors
worldwide are prepared to pay a premium for the securities of companies
that are governed in an accountable and transparent manner. The
second presentation, specially designed for journalists, provided an
overview of principles and best practices to follow when reporting on
topics related to corporate governance. The role of media in making
the general public aware of potential issues related to governance
practices in companies, as well as in providing insightful and
impartial coverage of all related topics was stressed.

Having received v ery positive feedback regarding both events,
NASDAQ OMX Armenia foresees that they will promote good governance
practices and strengthen investor rights protection in Armenia, thus
assisting the Armenian companies in attracting more capital for their
development needs.

In January 2008, Nordic exchange operator OMX Group acquired 100%
of shares of the Armenian Stock Exchange (Armex) and the Central
Depository of Armenia (CDA). After the combination of NASDAQ and OMX
in February 2008, Armex and CDA have become fully owned by the NASDAQ
OMX Group, Inc.

On January 27, 2009, "Armenian Stock Exchange" OJSC was officially
renamed as "NASDAQ OMX Armenia" OJSC. On June 5, 2009, "NASDAQ OMX
Armenia" OJSC became the owner of 100% of the shares of the "Central
Depository of Armenia" OJSC.

GEORGIANS VIOLATE JAVAKHETI ARMENIANS RIGHTS PRIOR TO SAAKASHVILI’S VISIT TO YEREVAN

/PanARMENIAN.Net/
23.06.2009 16:34 GMT+04:00

/PanARMENIAN.Net/ Georgian authorities’ consistent policy aimed at
violating the rights of the Armenian population of Samtskhe-Javakheti
has recently acquired coarser and more vivid manifestations. Georgian
National Security Council recently interrogated Javahk’s school
teachers preparing to leave for Armenia for trainings, "Yerkir"
union reported to PanARMENIAN.Net.

"The continue violating the rights of political activist Vahagn
Chakhalyan who was sentenced to 10 years’ imprisonment on April 7,
2009. Besides, RA NA parliamentarian Shirak Torosyan who is well known
for his public speeches devoted to Javahk Armenians was denied entry
to Georgia without any explanation," the union says in a statement.

Concerned over the increasing dissatisfaction in Armenia, Diaspora
and international community, Georgian authorities intensified
persecutions against Armenians prior to President Saakashvili’s visit
to Armenia. In this way, they attempt to reiterate their unyielding
stance on Armenians of Javahk and impose new concessions of Armenia
through economic pressures.

" ‘Yerkir’ union calls on Georgian authorities to refrain
from persecution policy, as it may intensify existing
dissatisfactions. Hence, Georgian authorities’ attempts to transfer
Javahk issue to the level of intergovernmental relations will be
doomed to failure," runs the statement.

The union states that Armenian authorities, different structures
in Armenia and Diaspora, as well as international organizations are
obliged to implement effective steps towards eliminating the deepening
crisis in Javahk and resolving Armenian population’s problems in
compliance with international norms of protecting human rights and
ethnic minorities.

SUPPLY OF NATURAL GAS TO ARMENIA RESTORED

ARMENPRESS
June 23, 2009

YEREVAN, JUNE 22, ARMENPRESS: The supply of natural gas to Armenia
has been restored at 13:15, June 21, said the press secretary of
"ArmRusgasprom" company Shushan Sardaryan. The flow of natural gas to
Armenia was temporarily suspended because of the construction works of
3.6 km length Ghazakh-Saguramo sector in the Georgian territory. These
works will contribute to the increase of reliability of Armenian
gas supply.

During the mentioned period the gas supply of Armenia was ensured from
the Abovian underground gas-store station without any restrictions.

IMF APPROVES INCREASE IN ARMENIA’S FINANCIAL SUPPORT TO $822.7 MILLION

ARMENPRESS
June 23, 2009

YEREVAN, JUNE 23, ARMENPRESS: The Executive Board of the International
Monetary Fund (IMF) today completed the first review of Armenia’s
economic performance under a Stand-By Arrangement (SBA) and approved
an increase in the IMF’s financial support to an amount equivalent to
SDR 533.6 million (about US$822.7 million; or 580 percent of Armenia’s
quota). An official from the IMF Armenian office told Armenpress that
these decisions enable the immediate release of SDR 102.7 million
(about US$158.3 million), bringing the total disbursed to SDR 264.2
million (about US$400 million). The Board also granted a waiver of
performance criteria on net banking system credit to the government
and the program’s fiscal balance.

The revised arrangement will support the government’s economic
program amid a sharperthan-expected impact from the global financial
crisis. The 28-month SBA was approved on March 6.

The key objectives of the program are to help Armenia adjust to the
external shock, maintain confidence in the currency and the financial
system, and protect the poor. The sharp contraction in economic
activity, the fall in remittances, an increase in unemployment,
and difficult conditions in credit markets require an easing of
macroeconomic policies and the implementation of several measures to
stimulate domestic demand and create new jobs.

Following the Executive Board’s discussion on Armenia, Mr. Murilo
Portugal, Deputy Managing Director and Acting Chair, stated:
"Since the approval of the stand-by arrangement in March 2009,
the external economic outlook has deteriorated significantly
for Armenia. Falling private transfers and capital inflows have
aggravated external imbalances and affected household incomes and
investor confidence. Construction activity, the main driver of growth
in previous years, has collapsed, and the economy is experiencing a
deep contraction.

"The additional financial assistance from the Fund will help cover
Armenia’s growing financing needs, while the recalibration of the
authorities’ economic program will help them better respond to the
deepening downturn. The program envisages an easing of monetary and
fiscal policy to mitigate the severity of the crisis, while laying
the ground for future fiscal consolidation primarily through one-off
investment expenditures and measures to strengthen tax policy and
administration. The authorities remain firmly committed to achieving
the program’s objectives of adjusting to the changed external
environment, supporting confidence in the currency and the banking
system, and protecting the poor.

"Following the successful return to a flexible exchange rate, monetary
policy will focus on maintaining low inflation. With the fall in
inflation rates, the recent reductions of policy interest rates are
appropriate. In addition, the authorities are taking active measures to
provide liquidity to the banking system and help resume lending. Fiscal
policy will provide crucial support by accelerating growth-enhancing
investment in infrastructure and strengthening social safety nets.

"As external conditions improve in 2010, growth is expected to
resume gradually. The short-term outlook remains, however, very
challenging. Continued reforms will be necessary to boost the
medium-term growth potential of the economy, including efforts to
improve the business climate, completion of the unfinished tax policy
and tax administration reform agenda, and progress on financial sector
reforms," M Portugal said.

UAE FOREIGN MINISTER TO VISIT ARMENIA

armradio.am
19.06.2009 17:53

On June 20 the delegation headed by the Foreign Minister of the United
Arab Emirates, Abdallah Bin Zayid Al Nahyan, will arrive in Armenia
on a two-day official visit.

Within the framework of the visit the UAE delegation is expected to
have meetings with the President of Armenia, Serzh Sargsyan, Speaker
of the National Assembly Hovik Abrahamyan and Foreign Minister Edward
Nalbandian.

During the meetings reference will be made to the Armenia-UAE
trade-economic relations. The agreement on "Provision of lands for
founding diplomatic representations in the Republic of Armenia and
the United Arab Emirates" and the memorandum of understanding on
"Lifting the requirement for persons having diplomatic passports to
receive a visa" will be signed.

THIRD ARMENIAN TOURISM COMPETITIVENESS CONFERENCE HELD

Noyan Tapan
June 18, 2009

YEREVAN, JUNE 18, NOYAN TAPAN. The Armenian government has proclaimed
tourism a priority sector of the economy, and it is taking steps
to turn the country into an excellency center of this sphere. So
the government attaches importance to holding Armenian Tourism
Competitiveness Conferences, which open an opportunity to discuss once
again the approaches to the sector’s development. RA Deputy Minister
of Economy Vahe Danielian stated this in his speech of welcome at
the 3rd annual Armenian Tourism Competitiveness Conference on June
18. This year’s conference is entitled "Towards Crisis Solutions".

The conference is hosted by the USAID-funded Competitive Armenian
Private Sector (CAPS) Project. Its Director Hayley Alexander said that
the conference subject of targeted marketing in international market
is a key one. In his opinion, success was achieved in this direction,
particilarly in terms of cooperation with France. The CAPS director
also focused on the use of information technologies in tourism and the
coordinated work of the bodies responsible for the sector’s development
such as the RA Ministry of Economy, the Armenian Tourism Development
Agency (ATDA) and the National Competitiveness Foundation of Armenia
(NCFA) – other organizers of the event.

The USAID Armenia Office Head Ms. Jetinder Chima reminded that since
2005 an average annual growth of 20% has been recorded in Armenia’
tourism. However, in her estimation, the sector can grow at a higher
rate. She said that although Armenians are hospitable, foreign tourists
spend little money in Armenia because "those who sell goods do not
speak and smile". She expressed an opinion that Armenia’s tourism
can also be encouraged by the formation and sale of budgetary –
cheap travel packages.

The ATDA CEO Nina Hovnanian-Alexanian expressed satisfaction with
the fact that Armenia’s tourism is growing, whereas all over the
world tourism is suffering a decline due to the global financial and
economic crisis. By official statistics, the number of tourists to
Armenia rose by 2.8% in the first quarter of 2008 compared to the
same period of the previous year and made 86,569.

BRIC SEEKING FRESH ANSWERS TO OLD PROBLEMS
Aurobinda Mahapatra (India)

en.fondsk.ru
18.06.2009

Brazilian President Lula De Silva in his article published in an Indian
daily on 16 June 2009 observed that BRIC is seeking fresh answers to
old problems. In his words, the BRIC summit in Yekaterinburg "marks a
major turning point in how our countries engage in a world undergoing
profound change…amid broken paradigms and failing multilateral
institutions." Russian President Dmitry Medvedev echoed the similar
view point at the press conference at the end of the summit when he
stated, "All the decisions important for the international community
— economic, security and political — should be taken on fairer
basis…this fairness is the key word for our interaction. BRIC
should create conditions for a fairer world order." The simultaneous
organisation of BRIC along with Shanghai Cooperation Organisation
(SCO) testifies to dynamism of Russian diplomacy but at the same time
it indicates the BRIC has to evolve a united and coherent approach
to tackle various issues that affect the world including food crisis,
financial crisis, and reform of the United Nations bodies.

The first summit meeting of BRIC (Brazil, Russia, India and China)
at the Russian Urals city of Yekaterinburg on 16 June 2009 held lot
of promises for a better and fairer world. Undoubtedly, through
equitable partnership BRIC can play a dynamic role and assert
itself in international politics. The 16-point statement issued at
the end of the summit dealt with divergent issues of international
concern ranging from food crisis to United Nation reforms. The BRIC
countries constituting 40 per cent of world population with 40 per
cent of world GDP no doubt can play an effective role in remoulding
international order by opening multipolar centres of dialogue and
reconciliation. And in these multipolar centres the developed countries
must come forth to adjust to the changing circumstances by taking in to
account divergent view points and accommodating the emerging powers in
international framework. It is in this context the grouping emphasised
on accommodating emerging powers in a reformed United Nations. The
joint statement clearly stated the importance the grouping attaches "to
the status of India and Brazil in international affairs, and understand
and support their aspirations to play a greater role in the UN."

Another important issue that the BRIC confronted during the summit
is the prospects of a new currency and the reform of Bretton Woods
structures such as World Bank and International Monetary Fund. The
joint statement argued for a strong need for a stable, predictable
and more diversified international monetary system. It reiterated the
grouping’s demand that the emerging and developing economies must
have greater voice and representation in international bodies. It
made explicit its demand that the leadership of these bodies "should
be appointed through an open, transparent and merit-based selection
process." Regarding the food crisis the joint statement argued that it
is not only the issue of developing countries consuming more, but it
is a matter far complicated and multifaceted. The grouping urged the
developed countries to give up protectionism and emphasised on the need
for a comprehensive and balanced outcome of the WTO’s Doha Development
Round. However, on the issue of alternate currency, no concrete
decision could be taken. Perhaps on the issue of a supranational
currency or a world reserve currency the grouping would have to
deliberate further to reach at a concrete and unanimous decision.

Indian Prime Minister, Manmohan Singh before departing to Yekaterinburg
to attend the SCO meeting and the BRIC summit told the press his
visit testifies to the "high regard we have for Russia’s Presidency
of the SCO and our desire to intensify our engagement with countries
of our extended neighbourhood in Central Asia." Reportedly, it was
at the initiative of Russia last year that the observers of SCO
were allowed to take part in the deliberations. While expressing
optimism that "the volume of trade among BRIC countries has grown
rapidly in recent years, Intra-BRIC investments have also grown,"
Singh advocated for the creation of a BRIC Joint Business Forum that
could cooperate in diverse areas such as agriculture, aviation,
energy, pharmaceuticals and services. The Indian prime minister’s
argument that the group need to further coordinate their effort at
official level in the forthcoming G 20 meeting in Pittsburgh towards
evolving a multilateral financial system has also been taken well
by the grouping. This can be a successful idea provided the parties
adopt a unanimous approach to the issue.

How far the BRIC would succeed in remoulding the international order
would depend on a set of factors. The members need to develop a common
agenda with effective will to push that agenda. Any divergence of
goals might defeat its purpose to achieve a fairer multipolar world
order. At the same time, in the changing world order which is much
more economically bargaining oriented, the counties may redesign
their goals to suit the common objective without sacrificing their
national interests. The BRIC countries which represent about 40
per cent of world population with high growth rates and resources
indeed have the potential to lead global economic growth. In fact,
global economic recovery is closely linked to the success of BRIC
economies. Whatever the stature and effectiveness of the BRIC
at present may be, it has no doubt emerged with prospects of an
alternative voice in the international politics. It is another point
of debate how far the resolve of this grouping to dawn a fairer
world order would be translated into practice, as it would depend
on the type of coordination and match of interests among the members
of the grouping. That BRIC has provided a platform to voice diverse
aspirations and to exchange ideas for a ‘more democratic and just
multipolar world order’ need to be kept in mind by BRIC countries
despite their diverse national interests. Only such an approach can
foster BRIC’s agenda for a fair world. _________________ Dr Debidatta
Aurobinda Mahapatra is a research faculty in the Centre for Central
Eurasian Studies, University of Mumbai, India.

INGO ARMENIA TO TAKE UP INSURANCE OF AVIATION RISKS

ArmInfo
2009-06-17 20:50:00

ArmInfo. INGO Armenia insurance company has added a new class to its
non-life insurance licence – insurance of responsibility for using
air vehicles (including cargo vehicles). The press- service of the
Central Bank of Armenia (CBA) reports that the relevant decision was
taken at the recent CBA sitting.

Deputy Director of INGO Armenia Arevshat Meliksetyan said that the
preliminary agreement with the potential client has already been
reached and by the end of 2009 the volume of premiums on insurance
of responsibility for using air vehicles will amount to $100 thsd,
the share of which in the total portfolio will total 2-3%.

According to INGO Armenia leadership’s forecast, the share significance
of the company in the market by premiums collected in 2009 will make
up 25-30%.

Meliksetyan added that in II quarter of 2009, despite the crisis
impact, the company ensured a considerable growth in premiums.

According to the Ranking of Insurance Companies of Armenia by the
Agency of Rating Marketing Information (ArmInfo), INGO Armenia
maintains its leading position by both the total volume of premiums
and certain classes. In particular, in I qt 2009 the company collected
premiums worth 317 mln AMD, having ensured the first position among
11 insurance companies, the index of diversity of insurance classes
portfolio exceeds 80%.

ARMENIA AND NKR SIGNED COOPERATION AGREEMENT IN THE SPHERE SPORTS

/PanARMENIAN.Net/
17.06.2009 16:00 GMT+04:00

/PanARMENIAN.Net/ On June 17, RA Sports Minister Armen Grigoryan
and NKR Sports Committee Chair Razmik Hovsepyan singed a cooperation
agreement for 2009-12.

The agreement aims at developing cooperation between two countries’
sports ministries.

Sports is one of the most important spheres for developing and
strengthening friendly ties between Armenia and Nagorno Karabakh
Republic, RA Sports Minister Armen Grigoryan said.

Let’s note that Armenia and NKR started cooperation in the sphere of
sports in April 2009 upon the initiative of National Olympic Committee
Chair Gagik Tsaroukyan, leader of "Prosperous Armenia" party. During
his visit to NKR, parties signed agreement on constructing a new
sports school and football grounds, as well as proposed a number of
other projects aimed at developing sports in NKR.