Author: Torgomian Varazdat

CBA CHAIRMAN: ONE OF ARMENIAN GOVERNMENT’S ACHIEVEMENTS OVER PAST 3 YEARS IS PROPORTIONAL TAX COLLECTION

arminfo
2007-11-13 18:23:00

ArmInfo. One of the Armenian government’s achievements over the past
3 years is the proportional tax collection, Chairman of the Central
Bank of Armenia (CBA) Tigran Sargsyan said in parliament, Tuesday,
presenting the CBA’s conclusion on the draft budget 2008.

According to him, earlier taxes were collected during the last
days of each month, which caused tension in the banking system and
hindered the efficient control over the commercial banks’ liquidity
level. Fortunately, this problem was solved over the past three years,
but the problem of proportional expenditure of budget funds still
remains unsolved. In particular, the budget 2007, like the ones of
previous years, has serious divergences. The targeted expenditures
of the first quarter of each year fail to be carried out, they move
from quarter to quarter and finally find themselves in the fourth
quarter. From the viewpoint of inflation, this creates certain
problems, particularly, to introduce a new system of price growth
forecast. In this connection, the CBA draws the government’s attention
to the necessity to solve this problem and create favorable conditions
for market participants. He stressed the fact that the government
presents a budget meeting international statistic standards. In
2007-2008, the CBA concluded a new agreement with the Armenian Ministry
of Finance and Economy, whereby the rules of serving the state budget
are regulated. In particular, the terms of serving budgetary funds,
interest rates for short-term and long-term programs are regulated,
and this will prevent preferential terms for the Armenian government
and exclude divergences in the financial market. "Our goal is to form
an environment which will be predictable for the market participants,"
said T.Sargsyan.

ARMENIAN COPPER TO INVEST UP TO $250 MLN IN COPPER-MOLYBDENUM DEPOSIT

Russia & CIS Business and Financial Newswire
November 5, 2007 Monday 11:58 AM MSK

The Armenian government has approved Armenian Copper Programme’s
(ACP) plan to develop the Tekhut copper- molybdenum deposit, Trade
and Economic Development Minister Nerses Yeritsian said at a briefing
Thursday.

The cost of the program will be $200 million-$250 million and the
life of the project will be 30-40 years.

ACP received a 25-year license to the deposit in 2001. The business
plan to develop the deposit was prepared based on the results of
exploration work done by Canada’s Strathcona Mineral Services Ltd.

Preliminary estimates put ore reserves at 450 million tonnes,
containing 1.6 million tonnes of copper and 99,000 tonnes of
molybdenum.

The company plans to annually mine 25,000-30,000 tonnes of copper
and 800 tonnes of molybdenum, which will account for 40-50% of the
country’s copper production and up to 20% of its molybdenum output.

ACP plans to export up to $270 million worth of copper concentrate
annually at current prices for the metal, Yeritsian said. Within
four years the company plans to build a concentration plant near the
deposit, along with the necessary infrastructure and buffer zone.

The minister also said there were environmental risks involved
in clearing of forests for open-cast mining of the deposit, so an
environmental management plan has been developed.

It was reported earlier that ACP might borrow $200 million from VTB
(RTS: VTBR), Russia’s second biggest bank. Company president Valery
Medzhlumian said "a political agreement has been reached with the
VTB group."

ACP said earlier that the loan would enable it to set up mining at
the Tekhut deposit and process 7 million tonnes of ore per year.

Tekhut, in northern Armenia, is the country’s second largest copper
and molybdenum deposit after Kadzharan.

SEYRAN OHANYAN: BORDER INCIDENTS PROVOKED BY AZERIS

PanARMENIAN.Net
12.11.2007 18:25 GMT+04:00

/PanARMENIAN.Net/ Incidents at the Armenian-Azeri border are mostly
provoked by the Azeri side, Chief of the Armenian Armed Forces General
Staff, colonel general Seyran Ohanyan told reporters Monday.

"The Armenian army does active service along the border with
Azerbaijan and this circumstance made us ensure maximal security for
our soldiers. If a soldier feels safe, he will never commence fire
for no particular reason," Ohanyan said, Novosti Armenia reports.

ARMENIA, LITHUANIA SIGN MILITARY COOPERATION PLAN

ITAR-TASS, Russia
Nov 12 2007

YEREVAN, November 12 (Itar-Tass) – Armenia and Lithuania have signed
a plan of military cooperation in peacekeeping, military legislation,
reforms and education for the next year, Armenian Defence Minister
Mikhail Arutyunyan said after talks with his Lithuanian counterpart
Juozas Olekas on Monday.

He is on a three-day official visit in the Baltic republic.

Arutyunyan said he was sure there were all prerequisites for successful
Armenian-Lithuanian military relations.

"Lithuania, which is a full-fledged member of the European Union,
and Armenia, which is seeking it, will use in full the potential of
military cooperation with the aim of consolidating European security
and stability," he said.

He said he had agreed with his Lithuanian counterpart about the
"joint solution of Armenia’s question of fulfilling its obligations
under the NATO programmes".

The defence ministers exchanged views on regional and international
security, Arutyunyan said.

"Touching on the issues of conflicts in the region, the sides have
reached an understanding that they should be resolved only peacefully."

"Lithuania is ready to share with Armenia the not easy experience of
joining the European Union," Olekas said at the talks.

He said Armenian military servicemen study in the Lithuanian military
academy and in the Estonian military college in Tartu.

The Armenian side in turn provides to Lithuanian servicemen a
possibility for training in mountain terrain before participating
in peacekeeping operations in "countries with similar climatic
conditions," the minister said.

The Lithuanian army servicemen will take part in NATO command and
staff exercises and in field exercises Cooperative Archer 2007 that
will be held in Armenia in next year’s August.

Olekas said Armenian servicemen participated in last year’s military
exercise Amber Hope, "showing themselves highly professional".

Panorama.am

22:51 09/11/2007

Construction of Sun Electric Power Station Must be Completed

`The construction of the sun electric power station must be
completed. 200 thousands drams are needed to accomplish it,’ said
Paris Heruny, the head of Radio physics research institute. He
mentioned that the power station was built 10 years ago and because of
the lack of money the construction was stopped.

`Our government ignores this problem,’ said Mr. Heruny. Some
Armenians from California intend to finance the project and to
complete the construction. According to Mr. Heruny the power station
will develop our economy and will give a chance to get free
electricity.

Source: Panorama.am

IN ESTIMATION OF MELIK-SHAHNAZARIAN, SITUATION IS VERY STRAINED IN REGION

Noyan Tapan
Nov 7, 2007

YEREVAN, NOVEMBER 7, NOYAN TAPAN. The situation is very tense in the
region and under this circumstance Armenia, in fact, is an island
of peace. This opinion was expressed by political scientist Levon
Melik-Shahnazarian. He, in particular, referred to the events taking
place in Georgia and Iraqi Kurdistan.

According to the political scientist, there will be no revolution in
Georgia, since the positions of Mikhail Saakashvili are rather steady,
and if, however, a revolution takes place, that country, in any way,
will not change its foreign pro-West policy.

In the opinion of Levon Melik-Shahnazarian, those, who are currently
against Mikhail Saakashvili, are his supporters, in fact. "Not
ideological, but an intra-clan struggle is proceeding in Georgia,
which, however, can have a negative influence on the economy of
Armenia," he said.

As for the developments proceeding in Iraqi Kurdistan,
Melik-Shahnazarian mentioned that the United States of America will
try to use the current strained situation against Iran. According to
him, it is not excluded that certain Kurdish detachments, conducting a
partisan warfare with the Turkish regular army, will pass the border
of Iran, which can become an important factor for destabilizing the
inner situation in Iran.

EU FOR PEACEABLE RESOLUTION OF NAGORNO-KARABAKH CONFLICT – POLITICAL ADVISER

Trend
08.11.2007 16:37:22

Azerbaijan, Baku / corr Trend A.Gasimova / The European Union
is against the military solution to the Nagorno-Karabakh conflict
between Azerbaijan and Armenia. "The Nagorno-Karabakh conflict should
be resolved in a peaceable way," Mark Fawcett, Political Adviser to
EU Special Representative, Peter Semneby, told Trend on 8 November.

The conflict between the two countries of the South Caucasus began
in 1988 due to Armenian territorial claims against Azerbaijan. Since
1992, Armenian Armed Forces have occupied 20% of Azerbaijan including
the Nagorno-Karabakh region and its seven surrounding districts. In
1994, Azerbaijan and Armenia signed a ceasefire agreement at which
time the active hostilities ended. The Co-Chairs of the OSCE Minsk
Group ( Russia, France, and the US) are currently holding peaceful
negotiations.

"The EU fully supports the efforts of the OSCE Minsk Group and
will not do anything that contradicts or undermines their efforts,"
Fawcett said.

According to EU representative, the EU has several ways in which
it can contribute to and support peace settlements, ranging
confidence-building-measures to peacemaking. "Most of these have
not been employed in the South Caucasus, in particular military
peacekeeping.

These use of these means remains a possibility, but only in support
of a settlement and if all EU member states agree," Fawcett said.

DANISH GOVERNMENT ENVISAGES ALLOCATING CREDIT RESOURCES OF 5 MILLION DOLLARS TO ARMENIA FOR DEVELOPMENT OF AGROTOURISM

Noyan Tapan
Nov 6, 2007

YEREVAN, NOVEMBER 6, NOYAN TAPAN. A preliminary agreement has
been reached between the "Rural Financing Facility" (RFF) programs
implementation office – state institution of the RA ministry of finance
and economy and the Danish government that the Danish government
will allocate credit resources of 5 million dollars for development
of agrotourism in Armenia, the director of the RFF Ara Muradian told
NT correspondent.

According to him, the implementation of the above mentioned credit
program in several Armenian marzes (provinces) will help increase
significantly incomes of the local population within 1-2 years,
therefore, expand the local consumption markets.

In the opinion of A. Muradian, problems related to development of rural
areas should be solved not only by promoting the agriculture. In his
words, it is envisaged that new credit programs will be implemented
with IFAD and World Bank resources, during which not only agricultural
but also other enterprises of rural areas will be credited.

He said that the studies conducted by the RFF show that for example,
non-agricultural enterprises of Tavush marz have greater demand for
financial resources than agricultural enterprises. "If financing of
non-agricultural sectors and the agriculture is not proportionate,
especially in remote marzes, agriculture will lose its capacity to
"absorb" investments at some stage of its development – due to the
absence of a growth of solvent demand in marzes," A. Muradian said.

NIS AND BALTIC STATES OLYMPIC COMMITTEE CHAIRMEN TO GATHER IN ARMENIA
`
Panorama.am
16:50 06/11/2007

NIS and Baltic State National Olympic Committee chairman and leading
sports specialists will gather in resort town of Tsaghkadzor on
November 7 to 8. They will conduct a seminar-discussion. Armenian
National Olympic Committee press secretary Karo Poghosyan said the
major topic will be the preparation of sportsmen for Beijing Olympic
Games in 2008. The sides will touch other issues of mutual cooperation.

IRAN’S DEFENSE MINISTER TO ARRIVE IN ARMENIA TODAY

armradio.am
06.11.2007 10:28

The Defense Minister of the Islamic Republic of Iran, Brigadier General
Mostafa Mohammad Najjar is scheduled to pay a visit to Armenia otoday
at the head of a high-ranking delegation, Iranian Fars news agency
reports.

During the trip, which will take place at the invitation of the
Armenian Defense Minister Michael Harutyunyan, the two sides will
discuss bilateral ties and exchange views on regional and international
issues.

The Iranian minister is also scheduled to attend meetings with
President Robert Kocharyan and Prime Minister Serge Sargsyan during
his stay in Armenia.