Author: Tavakalian Edgar

ARMENIAN GDP GROWS 13 PERCENT IN JANUARY-NOVEMBER

Armenpress
Dec 21 2006

YEREVAN, DECEMBER 21, ARMENPRESS: Armenia’s Gross Domestic Product
(GDP) rose 13.2 percent in January-November of 2006 from a year ago
to almost 3 trillion drams in real prices, the country’s national
statistical service said.

Industrial output without indirect taxes was worth 580 billion drams,
1.2 percent down from a year ago.

The committee said also power production reduced 6.6 percent from a
year ago to 5.3 billion kilowatt/hours electricity.

Agricultural GDP rose 0.2 percent to nearly 498 billion drams in real
prices. The biggest growth of 37 percent was reported in construction
that saw 530 billion drams of investments.

The national statistical service said also Armenia’s foreign trade
in January-November rose 13.6 percent from a year ago to $2.847
billion. Cut diamond trade deducted it rose nearly 20 percent to
$2.410 billion.

Armenian exports made $895 million, a 0.3 percent growth from a year
ago, while imports grew 21 percent to $1.952 billion.

MINING, FOOD AND SERVICE INDUSTRIES ARE ARMENIA’S PRIORITY SPHERE IN THE EUROPEAN MARKET
By Gohar Gevorgian

AZG Armenian Daily
20/12/2006

The export of Armenian goods to Europe has considerably increased
through the last years, stated yesterday AEPLAC Armenian office
coordinator Tigran Jrbashian. He added that the EU has become the
most important economic partner of Armenia.

According to Mr. Jrbashian, the variety of goods has also considerably
increased. Import from Europe to Armenia has also changed. In the past
mostly foodstuffs were imported, but now the majority of imported
goods is technical equipment, which displays the progress in the
Armenian business.

The AEPLAC representative also noted that the European market,
which has the biggest purchasing capacity in the world (450 million
population), most of all values the quality and safety of the Armenian
products. Mr. Jrbashian said that the European Neighborhood Action
Plan, signed on November 14, 2006, will have a decisive influence on
eth development of Armenian-European economical relations. Nevertheless
he said that there is still much to be changed in the Armenian market
for complete integration with the European one. Tigran Jrbashian
said he considers the mining, food and service industries Armenia’s
priority sphere in the European market.

HOVNANIAN SUFFERS $117.9M Q3 LOSS
By Janet Frankston Lorin

Associated Press
Tuesday, December 19, 2006

Home builder Hovnanian Enterprises reported late yesterday it swung
to a loss in fourth quarter, beset by a downturn in the housing market
that has also plagued competitors.

After paying preferred stock dividends, the company reported a
quarterly loss of $117.9 million, or $1.88 per share for the quarter
that ended Oct. 31. This compared with a profit $165.4 million,
or $2.53 per share, for the same period a year ago.

The quarter included $315 million in charges related to inventory
impairments and land option write- offs. Excluding these, the company
recorded income of $198.4 million, or $3.43 per share.

Analysts surveyed by Thomson Financial had forecast quarterly
earnings of $1.05 per share on $1.7 billion in revenue. Hovnanian
warned investors last month that it would have a net loss in its
fourth quarter.

The Red Bank-based company, which builds luxury homes in 17 states
including California, Florida, New Jersey and New York, is the latest
builder to be slammed by the downturn in the housing market.

President and Chief Executive Ara Hovnanian said he was disappointed
in the 2006 numbers, even as the company cut pricing and offered
incentives to improve affordability.

"We did not anticipate sudden ness or magnitude of the fall in
pricing that occurred this year in many of our communities," he said
in a statement. "Our profitability and the pace of new home sales
in our markets continues to be adver sely impacted by high contract
cancellation rates, increases in the number of resale listings and
increases in the number of new homes available for sale."

Revenues for the quarter dropped 1.5 percent, to $1.75 billion, from
$1.77 billion in the prior- year period. Costs rose 28.5 percent,
to $1.93 billion, from $1.5 billion a year earlier.

Shares fell 16 cents, or 0.45 percent, to $35.73 on the New York
Stock Exchange. In after-hours trading, the stock fell $1.25, to $34.

Over the past year, the stock has traded from $24.79 to $54.59.

Alex Barron, who follows home builders for JMP Securities, said the
industry will get worse before it gets better. He said with so much
inventory, builders like Hovnanian must cut their prices to compete.

"Until those inventory levels come more in line with historical levels,
it’s going to be very difficult for builders to show an improvement,"
he said. While Hovnanian posted a large write-off, he said the company
is being more realistic than other large home builders "about how
deep this current downturn is."

Excluding unconsolidated joint ventures, Hovnanian delivered 17,940
homes with an aggregate sales value of $5.9 billion in fiscal 2006,
compared with deliveries of 16,274 homes with aggregate sales value
of $5.2 billion the previous year.

For the fiscal year, the company recorded net income of $138.9 million,
or $2.14 per share, versus $469.1 million, or $7.16 per share, the year
before. Excluding $336 million in charges for inventory impair ment and
land option write-offs, in come was $753.2 million, or $4.53 per share.

Analysts surveyed by Thomson Financial had forecast full-year profit
of $4.97 per share.

Other home builders also have fared poorly of late.

Toll Bros.’ fourth-quarter earnings fell 44 percent, but the company
said it sees some signs of stabilization in the slumping housing
sector and raised its forecast for first-quarter home deliveries.

Executives of several of the largest home builders, including Ara
Hovnanian, predicted this month at an industry conference that the
housing market would improve in 2007 because low prices would bring
buyers back to the market.

The company also offered guidance for 2007 earnings between $1.50
and $2 per share, and first- quarter earnings between 5 cents and 10
cents per share. Analysts predict income of $2.71 per share for 2007
and 46 cents for the first quarter.

ARMENIAN MINISTER NOTES PROGRESS IN KARABAKH SETTLEMENT IN 2006

Armenian TV, Armenia
Dec 17 2006

Armenian Foreign Minister Vardan Oskanyan has said that progress
was achieved in the settlement of the long-standing dispute with
Azerbaijan over the Nagornyy Karabakh region in 2006.

"If I try and compare where we were at the beginning of 2006 and where
we are today, I can say we have achieved progress although there are
still numerous unsettled problems, but there was progress in general,"
Oskanyan told Armenia TV on 17 December in an exclusive interview. "The
fact that we have a document outlining settlement principles on the
table, an it is worded in quite a balanced way, should be regarded
as a good basis for the continuation of the talks," he said.

However, the minister said the sides should not be overoptimistic
about the results.

"Having agreed the principles, we should take into account that
we have to go a long way to learn in detail those principles and
formulate the general terms of an agreement. I am sure there will be
difficulties since I know what details will be discussed there. There
will be serious obstacles and disagreements," Oskanyan said.

The Armenian minister also commented on the West’s negative reaction
to the constitutional referendum held in breakaway Nagornyy Karabakh
on 10 December.

"This will lead to a situation when the people of Karabakh will also
ignore statements of those organizations," Oskanyan said. "They did
not have to recognize [the referendum], but they could have positively
assessed the aspiration of the people of Karabakh to democracy."

Speaking about the action plan signed between Armenia and the EU as
part of the European Union Neighbourhood Programme, the minister said
that it was a guideline for Yerevan for the next five years.

"This is a serious multilateral programme and provides Armenia with
a serious opportunity to move that way and introduce qualitative
changes in our political, economic and social life. I think that
this will be a serious guideline for us over the next five years,"
Oskanyan told Armenia TV.

ARMENIA’S STRATEGIC FACILITIES MUST BELONG TO NATIONAL PRIVATE CAPITAL

Arka News Agency, Armenia
Dec 19 2006

YEREVAN, December 18. /ARKA/. Armenia’s strategic facilities must
belong to the national private capital, Edward Agajanov, economist
and former chief of the National Statistical Service stated at the
press conference on Friday.

He pointed out that oligarchs’ assets exceed the country’s budget
several times, and this capital could be used for the welfare of
Armenia.

In particular, Agajanov believes that one of Armenian oligarchs could
become the owner of ArmenTel Company.

The expert believes that foreign capital and technologies incoming
to the country is very encouraging.

At the same time, Agajanov pointed out that everything depends on
the importance of sectors and the size of the foreign capital’s share.

"It is necessary to take the country’s security into account, and
it is inadmissible to put all the strategic sectors in the basket of
one country," Agajanov said.

According to him, Russia is undoubtedly an important player in the
region. However, national interests should be observed in terms of
economic security.

In this relation, he also called unsuccessful the transaction "Property
Against Debt" with Russia.

RAO "UES of Russia" (Unified Energy System)owns the Sevan-Hrazdan power
unit of the HEPS, Hrazdan TEPS and manages the financial transfers
of the Armenian NPP.

Besides this, Russian VimpelCom Company bought 90% shares of the
national communication operator ArmenTel Company from OTE Greek
Company for EUR 341.9mln.

The agreement to transfer five Armenian enterprises to Russia’s
ownership against Armenia’s public debt for $93mln before Russia was
signed in 2002. However, the enterprises have not yet been put into
operation.

CREATION OF A NATIONAL SECURITY COUNCIL IS A MUST
By Karine Mangassarian

Yerkir.am
December 15, 2006

"It is necessary to create a second level of the executive power,
a National Security Council.

This is not stipulated in the National Security Concept that is
under discussion," Deputy Speaker of the National Assembly Vahan
Hovhannissian said during a meeting with students organized by ARF’s
Nikol Aghbalian Student Union.

Hovhannissian noted that there is no consensus among the political
forces as to the future of the country. Meanwhile, in the developed
countries the political forces have a common vision of their countries’
future and they debate over the ways how to reach that future.

"In our society this vision is on the level of perceptions: everyone
understands where the threat comes from, they understand what we should
not do, but there is no singe document that would contain this vision.

Today the National Security Concept is being developed. However,
until this document is accepted by all of us we have to say that the
consensus on the future development of the country is on an intuitive
level," Hovhannissian said.

Commenting on some details on the National Security Concept
Hovhannissian pointed out one issue that is important for the ARF. "You
can create any document. Serious efforts were contributed to develop
the draft. It has passed expertise several times. It is a positive
document but there are no mechanisms for its implementation. We
believe the country needs a National Security Council.

Theoretically, such a Council exists in Armenia, but in practice –
it is absent. The executive power solves day to day issues and the
government that is dependant on the results of the election and the
National Assembly has too short a time which it uses to solve social
issues. However, we do not have a body that would have the vision
of Armenia in 50-70 years’ time and it is impossible to assign this
responsibility to the government," Hovhannissian told the students.

"RUMI IDEAS AND THOUGHTS" IN ARMENIA

Iranian Students News Agency, Iran
Dec 18 2006

TEHRAN, Dec.18 (ISNA)-On the occasion of Rumi’s 800th birthday
anniversary, a ceremony entitled "A Survey in the Ideas and Thoughts
of Mawlana Jalal ad-Din Muhammad Rumi" in the Acharian University of
Yerevan, Armenia.

"On the occasion of Rumi’s 800th birthday, the UNESCO will organize
various cultural programs in Egypt, Afghanistan, and Turkey and
particularly in Iran," stated Iran’s cultural official in Armenia,
Reza Otoufi while speaking in the ceremony.

He also recognized the meeting with Rumi’s inspiring master, Shams
Tabrizi as the turning point of Mawlana’s life.

"He was a poet who bridged the Persian literature to Islamic
mysticism," observed Otoufi while noting the competency of Rumi in
interpreting the Holy Koran and Islamic words.

Also in other parts of the meeting, an Armenian professor at Acharian
University, Garnic Georgian and the Armenian Writers Association
director, Leon Ananian presented a summary of Rumi’s life and poetry
in their speeches.

In the final section of the meeting, a few students at the Iranology
department of Acharian University recited the works of Rumi.

Mawlana Jalal ad-Din Muhammad Rumi was born in Balkh (then a city
of Greater Khorasan in Persia, now part of Afghanistan) and died
in Konya (in present-day Turkey). His birthplace and native tongue
indicate a Persian heritage. He also wrote his poetry in Persian and
his works are widely read in Iran, Afghanistan, Tajikistan, and in
their translation in Turkey. He lived most of his life and produced
his works under the Seljuk Empire.

Rumi’s importance is considered to transcend national and ethnic
borders. Throughout the centuries he has had a significant influence on
Persian as well Urdu literature and Turkish literature. His poems are
widely read in the Persian speaking countries of Iran, Afghanistan and
Tajikistan and have been widely translated into many of the world’s
languages in various formats.

After Rumi’s death, his followers founded the Mevlevi Order, better
known as the "Whirling Dervishes", who believe in performing their
worship in the form of dance and music ceremony called the Sema.

AZERBAIJANI SIDE HAMPERED OSCE MONITORING

Azat Artsakh, Republic of Nagorno Karabakh [NKR]
16 Dec 2006

On December 13, in accordance with an arrangement with the governments
of the sides, the OSCE mission was to hold monitoring of the front
line between the armed forces of Nagorno Karabakh and Azerbaijan near
the Karakhanbeyli area, Fizuli. The monitoring mission and the
representatives of the ministries of foreign affairs and defense
arrived at the place of monitoring, however, considering that the
Azerbaijani side, like in the previous cases, did not take the
observers to the agreed place, the OSCE mission members decided to
postpone the monitoring for security.

NKR MFA PRESS SERVICE
16-12-2006

ROBERT KOCHARIAN: NO COLORED REVOLUTIONS ARE EXPECTED IN ARMENIA

YEREVAN, DECEMBER 16, NOYAN TAPAN. "No colored revolutions are
expected in Armenia. This wave passed through several CIS countries,
not leaving good memories about itself, and I’d advise the sponsors of
revolutionaries not to waste money: it would be better to build
something good in Armenia," the RA President Robert Kocharian said
this in his interview to three Armenian TV companies on December
15. He did not rule out the possible influence of external forces at
the upcoming parliamentary elections. "It would be even offensive if
the countries having interests in this region did not try to have some
influence. It would mean that nobody needs us and it is not an
important country," R. Kocharian expressed an opinion. According to
him, after observing what kind of conferences and seminars are
organized in Armenia, the subjects under discussion and those who
finance, it becomes clear from where and what kind of influence
various external forces want to have on Armenia’s poilitical field.

In the president’s opinion, it is enough to examine the directions of
grant programs and some mass media and everything becomes clear. "It
certainly causes a problem for the Armenian national security. We
cannot confront all this by imposing restrictions rudely," the
president stated. In his words, this should be done by using "more
reasonable and flexible versions and great explanatory work." "Our
people should realize that the political forces who get powe r with
the financing from outside and the support of external forces are
dangerous to the country. The country’ leadership should be
pro-Armenian and devoted to our national interests," Robert Kocahrian
stated, adding that this is the only direction guaranteeing the
country’s safe future.

Robert Kocharyan: There will be no active talks in the pre-election period

ArmRadio.am
16.12.2006 13:07

`There will be no active negotiations on the Karabakh conflict
settlement before the parliamentary elections. The main reason is as
follows: I think it immoral to use the Karabakh issue in the election
campaign, and even the best suggestion will be criticized in case it
is discussed in a pre-election period,’ RA President Robert Kocharyan
said in an interview to three Armenian TV Channels.

According to RA President, for this reason it will be correct to turn
the process passive and reactivate it after the elections. `I don’t
wish the Karabakh issue to become the captive of pre-election moods,
where it is impossible to anticipate impartiality,’ said Robert
Kocharyan, noting that there are people we cannot restrict themselves
during different meetings, clearly hinting that the President will be
obliged to go to certain concessions on the Karabakh issue, and they
will use this in the election campaign.

Robert Kocharyan also turned to the issue of `colored revolutions,’
noting that nothing of this kind is expected in Armenia. `This wave
passed through several CIS countries, not leaving good memories among
people.’ He advised ` the sponsors of new revolutions’ not to spare
means in vain.