EBRD Extends $10 Million Loan To VTB Bank Armenia

EBRD EXTENDS $10 MILLION LOAN TO VTB BANK ARMENIA

ARKA
Dec 24, 2008
YEREVAN

The European Bank for Reconstruction and Development (EBRD) has
extended a $10 million loan in three tranches to enable VTB Bank
Armenia to offer credit to micro-and-small-sized enterprises (MSEs)
across the country.

The project will enable the creditworthy MSEs in Armenia to access
to medium-term reliable sources of finance.

"Micro and small enterprises are the backbone for a developing economy.

There is a significant unmet demand for MSE finance in the country",
said Chikako Kuno, director of the EBRD’s Group for Small Business.

"This facility gains particular prominence in the current environment
of global liquidity constraints and with VTB Bank’s wide regional
presence we hope to increase financial access for the rural, micro
and small entrepreneurs in the country," he added.

Established in 1923, the VTB Bank (Armenia) (formerly the
Armsavingsbank) had been member of the USSR Sate Savings Bank by
1993. Later, the bank was renamed Savings Bank of the Republic of
Armenia. The bank’s absolute shareholder is the Russian VTB Bank.

The chartered capital of VTB Bank (Armenia) totaled 13.9bln drams, with
its own capital amounting to 23.2bln drams on November 1, 2008. The
bank’s assets and loan portfolio reached 98bln drams and 74.8bln
drams respectively, with total liabilities amounting to 74.8bln drams.

A The bank’s net profit exceeded 2.4bln drams.

On December 7, 1992, Armenia became EBRD member with 10mln eur share.

As a chief investor, the bank has allocated 202mln eur for 52 programs
in Armenia.

‘South-Caucasian Railway’ CJSC Suspends Repair Of Electric Locomotiv

‘SOUTH-CAUCASIAN RAILWAY’ CJSC SUSPENDS REPAIR OF ELECTRIC LOCOMOTIVES

ArmInfo
2008-12-23 14:42:00

‘The South-Caucasian Railway’, being a subsidiary of ‘RRW’ OJSC, has
suspended repair of electric locomotives, Minister for Transport
and Communication of Armenia Gurgen Sarkisyan said at today’s
press-conference.

"We shall still return to the issue of efficiency of using the
investments and the funds allotted to the company, as well as to their
structure and form. Not everything, that is invested, may be considered
investments", the minister said when commenting on the accusations,
published in the mass media, to SCRW on non-target use of funds. In
particular, the repair of the Armenian electric locomotive in Georgia
cost $1,8 mln to the "South-Caucasian Railway". G. Sarkisyan also said
the Ministry should receive the company’s financial report in early,
2009 and start its assessment. A special subdivision is created in
the Ministry to control the financial and investment activity of SCRW.

To recall, SCRW CJSC is the 100 percent subsidiary of Russian
Railways CJSC.

In February 2008 SCRW obtained a concession of the state CJSC Armenian
Railway. The agreement of concession of the Armenian Railroad CJSC
for 30 years with a 20-year renewable period was signed in Yerevan in
February 2008. The Russian Railways will invest $572 million in the
Armenian railway network, including $220 million within the coming
5 years.

BAKU: Frederick Starr: "It Is Obvious That Russia Attempts To Replac

FREDERICK STARR: "IT IS OBVIOUS THAT RUSSIA ATTEMPTS TO REPLACE THE MINSK PROCESS WITH THE MOSCOW PROCESS"

Today.Az
olitics/49731.html
Dec 22 2008
Azerbaijan

Day.Az interview with Frederick Starr, head of the Institute of
Central Asia and Caucasus of John Hopkins University.

– What is the reason of the intensification of Russia’s role in the
resolution of the Karabakh conflict, which led to signing of the
Moscow declaration?

– It is quite obvious that despite official statements, Moscow tries to
replace the Minsk process with the Moscow process. But such a conduct
remained in the past and I think that Russia has more urgent problems
on which it should focus its attention.

– How serious can changes in the relations between Russia and the
United States be following the events in Georgia?

– Most expect profound changes in the relations between Moscow and
the United States. I consider these expectations to be mistaken. The
relations will develop in the evolutionary manner. No doubts that the
United States have ground to support good relations with Moscow. It
will not be conducted to damage the interests of our friends in the
Caucasus. I think ignoring these interests in relations with Moscow
would become the worst mistake for Washington. This is what Europeans
do, who use the Caucasus states as a trading object in the relations
with Moscow. I hope that in the future the United States will still
treat Georgia, Azerbaijan and Armenia as legal objects not as a token
money in the geopolitical game.

– Can the differences between Russia and the United States, as the
OSCE MG states, influence on the Karabakh resolution?

– I was initially confident about the ineffectiveness of the Minsk
process, as Russia on many aspects was the conflict participant and
now it offers mediation services. I do not know which progress it will
lead to, but it is clear to me that the Minsk Group has previously
failed. All parties are aware that it will lead to nothing. Certainly,
Russia has an opportunity to settle the Karabakh problem, but if it
illegally supplies Armenia with arms for $1 bln it creates problems.

Moscow is interested in preservation of the quo status. Russia must
realize that the careless policy towards neighbors and the world
community will lead to nothing and it must behave as a responsible
modern force. Other imprtant members of the world community do not
intend to build a Great Chinese Wall between the Russian actions in
the Caucasus and their readiness to cooperate with Russia.

But until Russia changes its policy in the Caucasus, there will be
suspicion and distrust in the relations with this country. I imply
not only the United States and Europe, but also China, which is also
resented over Russia’s behavior in Georgia. Moreover, all the Central
Asian States are quite strong to show their resentment which will be
possible under Beijing’s support.

– What do you think about Ankara’s actions in the resolution of
problems in the Caucasus and its Initiative of the Caucasus Stability
and Security Platform?

– I took a particular interest in Turkey’s initiative in this
direction. At the same time, I am anxious that Ankara may have the
intention of settling the "Armenian genocide" issue at the cost of
Karabakh. I sincerely believe that I am mistaken. I hope Turkey will
soon make a clear statement on this issue. Otherwise, there may appear
grounds for concern.

http://www.today.az/news/p

Merry Christmas from Abp. Hovnan Derderian

WD Newsletter

Western Diocese of the Armenian Church
3325 North Glenoaks Blvd. Burbank, CA 91504
Tel: (818) 558-7474 Fax: (818) 558-6333
E-mail: [email protected]
Website:

Dear Reader

"… Let the peace of Christ rule in your hearts to
which indeed you were called in the one body."
– Colossians 3:15

The blessed Birth of our Savior and Lord Jesus Christ
brings peace on earth. Peace is the reflection of the love
of God; the peace which is being offered to us all,
reawakening in us the wisdom to live a purpose-driven life.

The words of St. Paul the Apostle are a spiritual gift on
the eve of the New Year and Christmas which nourishes our
spirituality with the Divine presence.

Today we live in a world, where the celebration of the
Birth of Christ has been commercialized. Christmas, dear
faithful, is most of all a time of spiritual reawakening. It
is that time of the year the faithful hold firm the sacred
traditions of the Church and make Christmas a special time
for family reunions and gatherings.

Click here to read the entire
message…[ primate-s-christmas-blessings/?utm_source=newslett erAlpha&utm_medium=email&utm_campaign=chri stmasMessage]

Watch the Video in English or
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America, providing spiritual guidance and leadership to the
Armenian Apostolic community, is a 501 (c)(3) non-profit,
tax-exempt organization comprised of more than 50 churches
in 16 western states. It was established in 1898 as the
Diocese of the Armenian Church encompassing the entire
United States and Canada. In 1927 the Western Diocese was
formed to exclusivly serve the western United States.

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Ex-Foreign Minister Of Armenia: Proposal By PACE Monitoring Committe

EX-FOREIGN MINISTER OF ARMENIA: PROPOSAL BY PACE MONITORING COMMITTEE TESTIFIES THAT ARMENIAN AUTHORITIES’ APPROACH ON FULFILLMENT OF OUR COMMITMENTS DIFFER FROM THAT OF EUROPEAN STRUCTURES

ArmInfo
2008-12-18 19:32:00

ArmInfo. Yesterday’s decision by PACE Monitoring Committee is extremely
worrying for Armenia, especially given the growing influence of
economic crisis on Armenia that will undoubtedly crease serious
problems with democratization and make Armenia’s positions in the
international arena even weaker. Ex-Foreign Minister of Armenia
Vardan Oskanyan made this statement when commenting on PACE Monitoring
Committee draft resolution on Armenia’s commitments to PACE adopted
in Paris Wednesday.

‘I think that Armenian authorities should rapidly respond to this
statement by such actions that would lead to adoption of a favorable
decision for Armenia in January. The circumstance that Monitoring
Committee proposes suspending the right of the Armenian delegation to
vote and, it seemed to be unexpected for the authorities, testifies
that the approaches of the Armenian authorities on fulfillment of our
commitments differ from the approaches of European structures. While
the authorities are expressing confidence that Armenia fulfills
the requirements by the relevant resolutions, the response by the
Monitoring Committee testifies to the opposite. I hope that Armenian
authorities will make real steps till January in order our approaches
and those of PACE on fulfillment of our commitments no longer differ,
and it will become possible to prevent the decision so unfavorable
and extremely dangerous for Armenia’, Vardan Oskanyan said.

ANKARA: Assyrians Part Of Turkey’s Mosaic, Says Swedish MP

ASSYRIANS PART OF TURKEY’S MOSAIC, SAYS SWEDISH MP

Turkish Daily News
December 18, 2008 Thursday

A Swedish parliament deputy of Assyrian origin will attend a hearing
Friday for a land dispute between a 1,600-year-old monastery and
locals in the southeastern Anatolian town of Midyat, populated by
about 3,000 Assyrians

"I hope a fair verdict will be delivered and the case will be resolved
within Turkey’s legal system, so that the country’s image is not
harmed in Europe," Yilmaz Kerimo told the Hurriyet Daily News &
Economic Review in a telephone interview.

Kerimo has served in Swedens parliament for 10 years and is a member
of the Social Democratic Party. He is from Midyat and moved to Sweden
three decades ago. Close to 80,000 Assyrians live in Sweden, most of
who migrated from Turkey.

The land dispute has been brought by local officials of three nearby
villages who contest the borders of the monastery, which they argue
are bigger than any place of worship in the world. Concerned by
the re-drawn borders following land surveying proceedings in the
area, officials from the monastery foundation applied to the court,
saying they are not occupiers as they’ve been paying tax for the land
since 1938

"Our goal is not to denigrate Turkey. On the contrary, we want to see
the country in the EU. The monastery has been there for centuries. The
Assyrians peacefully live in the region without engaging in any
terrorist activity. I cannot understand why the group is branded as
occupiers," Kerimo told the Daily News.

The Assyrians will apply to the European Court of Human Rights once
all domestic legal means are exhausted.

[HH] More Assyrians claimed to return home

The land dispute is rooted in uneasiness about the return of migrant
Assyrians to their former lands in Turkey, according to some Assyrian
groups. Kerimo said their migration to Europe started 30 years ago but
democratic reforms in Turkey over the last five years have prompted
some to return home, leading to land disputes.

"Some of the Assyrian land was occupied [by the locals] and ended up
in courts. Turkey must protect its Assyrian community. There are only
3,000 left in Midyat. Assyrians are a richness of Turkey and part of
its mosaic," he said.

The EU is closely monitoring the situation for religious groups
in Turkey. A draft report of the European Parliament drew adverse
reactions from Ankara when it referred to an alleged "genocide" of the
Assyrians, but the controversial expression was later removed from
the final version of the document. Separately, the EU’s Executive
Commission pointed out in 2004 the problems encountered by the
Assyrians

"The Assyrians are non-Muslims but they are considered neither a
minority nor Turk. In other words, the Assyrians were caught in the
middle. An Armenian or a Jew has the right to education and religion
but not an Assyrian," said Kerimo. Jews, Greeks and Armenians are the
only recognized minority groups spelled out in the Lausanne Treaty,
the founding agreement of the Turkish Republic.

In comparison, he said the situation of the immigrant Assyrians living
in Sweden has been better over the last 30 years.

"We have everything in Sweden: parliamentarians of Assyrian origin,
schools, television channel and magazines in Assyrian and even a
football club. Why cant we utilize the same rights in our homeland
Turkey? There is something wrong going on in the system," he said

BAKU: Turkish Prime Minister Criticizes Apologizers To Armenians

TURKISH PRIME MINISTER CRITICIZES APOLOGIZERS TO ARMENIANS

Azeri Press Agency
Dec 17 2008
Azerbaijan

Ankara-APA. Turkish Prime Minister Receb Tayib Erdogan reacted to
the Internet campaign started by a group of scientists, writers,
journalists and representatives of the non-governmental organizations
to apologize to Armenians for 1915 events in Ottoman Empire.

Erdogan said his government had tried to normalize relations with
Armenia since coming to power: "We allowed avia cargo transport to
Armenia and restored Armenian church in Akdamar, Van province. Our
president visited Yerevan to watch Armenia-Turkey match. However I do
not join and do not support the campaign started on Internet. I did
not commit a crime that to apologize for it. I do not understand the
people, who started this campaign and I think they are wrong. The
good will approach is one thing and apologizing for not committed
crime is another".

Turkish President Abdullah Gul called the campaign an appearance of
opinion pluralism in the society.

Iran Envoy Offers Iran’s Mediation To Solve Nagorno-Karabakh Problem

IRAN ENVOY OFFERS IRAN’S MEDIATION TO SOLVE NAGORNO-KARABAKH PROBLEM

Thai Press Reports
December 15, 2008 Monday

Section: General News – Iran’s Ambassador to Azerbaijan Naser Hamidi
Zare voiced Tehran’s preparedness to help resolve a longstanding
conflict between Azerbaijan and Armenia.

"Azerbaijan and Armenia make efforts to resolve the conflict. Iran
can also use its potential in this respect," the envoy said about
Iran’s intention to mediate in the settlement of Nagorno-Karabakh
conflict, reminding that Iran has made great proposals to Azerbaijan
on this issue.

Speaking to reporters during a press conference, Hadimi Zare
further viewed future of Iran-Azerbaijan relations as very clear
and prosperous.

Asked about Iran’s view over Turkey’s "Caucasus Stability and Security
Platform" initiative, Hamidi Zareh said the world is tired of Marxist
and capitalist systems.

"It is time to create a new clean and honest system. The world needs
a fair system," he said.

Elsewhere, the diplomat said Muslim countries, as well as independent
and free countries of the world must take effective steps toward
prevention of genocide in Palestine and ending of blockade of Gaza
Strip.

Responding to a question about possibility of war between Iran and
Israel, Hamidi Zare reminded that Tehran does not recognize any such
country as Israel, and called possibility of war as tattles.

Israel and its close ally the United States accuse Iran of seeking
a nuclear weapon, while they have never presented any corroborative
document to substantiate their allegations. Both Washington and Tel
Aviv possess advanced weapons of mass destruction, including nuclear
warheads.

Iran vehemently denies the charges, insisting that its nuclear program
is for peaceful purposes only. Tehran stresses that the country has
always pursued a civilian path to provide power to the growing number
of Iranian population, whose fossil fuel would eventually run dry.

Speculation that Israel could bomb Iran has mounted since a big
Israeli air drill in June. In the first week of June, 100 Israeli
F-16 and F-15 fighters reportedly took part in an exercise over the
eastern Mediterranean and Greece, which was interpreted as a dress
rehearsal for a possible attack on Iran’s nuclear installations.

Iran has, in return, warned that it would target Israel and its
worldwide interests in case it comes under attack by the Tel Aviv.

A US attack on the Syrian village of Sukkariyah on October 26, has
also raised speculation about the likelihood of a US unilateral strike
on the Islamic Republic.

The United States has also always stressed that military action is
a main option for the White House to deter Iran’s progress in the
field of nuclear technology.

Iran has warned it could close the strategic Strait of Hormoz if it
became the target of a military attack over its nuclear program.

Strait of Hormoz, the entrance to the strategic Persian Gulf waterway,
is a major oil shipping route.

Meantime, a recent study by the Institute for Science and International
Security (ISIS), a prestigious American think tank, has found that a
military strike on Iran’s nuclear facilities "is unlikely" to delay
the country’s program.

The ISIS study also cautioned that an attack against Iran would
backfire by compelling the country to acquire nuclear weaponry.

Intensified threats by Tel Aviv and Washington of military action
against Iran contradict a recent report by 16 US intelligence
bodies which endorsed the civilian nature of Iran’s nuclear plans
and activities.

Following the US National Intelligence Estimate (NIE) and similar
reports by the IAEA head – one in November and the other one in
February – which praised Iran’s truthfulness about key aspects of
its past nuclear activities and announced settlement of outstanding
issues with Tehran, any effort to impose further sanctions or launch
military attack on Iran seems to be completely irrational.

The February report by the UN nuclear watchdog, the International
Atomic Energy Agency, praised Iran’s cooperation in clearing up all
of the past questions over its nuclear program, vindicating Iran’s
nuclear program and leaving no justification for any new UN sanctions.

The UN nuclear watchdog has also carried out at least 14 surprise
inspections of Iran’s nuclear sites so far, but found nothing to
support West’s allegations.

Following the said reports by the US and international bodies, many
world states have called the UN Security Council pressure against
Tehran unjustified, demanding that Iran’s case be normalized and
returned from the UNSC to the IAEA. – FNA

Left Behind – Left In Dark Times: A Stand Against The New Barbarism,

LEFT BEHIND – LEFT IN DARK TIMES: A STAND AGAINST THE NEW BARBARISM, BY BERNARD-HENRI LEVY
by Claire Berlinski

National Review
December 15, 2008

A curious thing happened as I was reading Bernard-Henri Levy’s latest
book: I found myself moved.

It begins with an account of a phone call from Nicolas Sarkozy in
March 2007. Levy recalls Sarkozy’s triumphant tone as he asked whether
Levy had seen Andre Glucksmann’s article in Le Monde. Glucksmann,
like Levy a prominent intellectual of the kind France particularly
treasures and like Levy a man of the Left, had just announced his
support for Sarkozy against the pretty socialist airhead Segolène
Royal. "Let’s get to the point," Sarkozy says to Levy, cutting him
off in mid-pleasantry. "When are you going to write your article
about me? Huh, when? Because Glucksmann is fine. But you, after all,
are my friend."

Levy is steamrollered in the face of Sarkozy’s force majeure. "No
matter how much I like you," he at last stammers, "the Left is my
family, and . . ."

"Emmanuelli, your family? Montebourg, your family? The people who’ve
spent thirty years telling you to go f**k yourself? Do you really
think I’m an idiot or do you really believe what you’re saying,
that these people are your family?"

Levy captures both Sarkozy’s unctuousness and his steroidal aggression
— but captures, as well, his paradox: The man is right about a great
many things and braver by far than his enemies. It is I, not Sego, who
speaks out about Chechnya, about Darfur; it is she, not me, who praises
Hezbollah and extols the virtues of the Chinese justice system . . .

Sarkozy hangs up; Levy is left uneasy. "Unfortunately," he writes,
"he was right. . . . The Left to which I had stayed faithful was
behaving strangely."

At that point, he remarks, this book began. The first half of the
book may best be described as Levy’s apology for voting against
Sarkozy all the same. It reflects the thinking of a deeply conflicted
man, and while it is to be applauded for its honesty, it cannot be
celebrated for its rigor: Again and again, Levy refuses to follow
his own arguments.

Levy rightly scorns the relativist who has "nothing against the stoning
of adulterous women in Afghanistan. Nothing against mutilating the
genitals of young girls"; he rightly acknowledges that the Left
was blind to the evils of Stalinism and a host of other evils as
well. He is of course not the first man of the Left to note this: The
American neoconservative movement was made up originally of refugees
from the Left; 9/11 prompted fresh apostasy among such figures as
Christopher Hitchens and Nick Cohen (whose What’s Left? is a more
disciplined book). Levy’s observations are more or less those made
(with welcome Anglo-Saxon verbal economy) by the drafters of the 2006
Euston Manifesto in Britain.

But Levy cannot bring himself simply to reject and renounce the
Left. Like a battered wife remembering from her hospital bed the
exquisite roses her husband once brought her, Levy lets his beautiful
memories of Rosa Parks and Martin Luther King prevent him, too,
from petitioning for divorce. No, he argues, the Left is still the
place for the pure of heart; it must only remember what it stands
for, to wit, the instinct to support the Dreyfuses of the world,
the "good memory of antifascism," the lessons of anticolonialism
and antitotalitarianism. This is well-meant, vaporous, and empty. We
remain with the question: Is it the Left or the Right that supports
the Dreyfuses of the world and opposes colonialism, fascism, and
totalitarianism?

Levy makes the case that the Left is morally unmoored, but nonetheless
insists he will remain of it — a policy as ruinous in politics as it
is dangerous in seamanship — for one belongs on the Left, he insists,
if one sympathizes with human suffering. "Man," he writes, "the man
of the Left, is the only animal who can shed his own self to enter,
without fusion or effusion, someone else’s mind and heart." Now,
this is first of all not true on the face of it, and Levy offers
no evidence to the contrary. The evidence we do have suggests that
those who describe themselves as men of the Right tend to give more
— a lot more — to charity. In any case, if the Left stands on its
natural sense of sympathy, its defense is not apt to persuade those who
believe it more important to rectify than to sympathize with suffering;
Levy himself offers ample evidence that many of the Left’s schemes,
however well-intentioned, in the end increase the sum of suffering.

Elsewhere too Levy seems unwilling to follow his own thoughts. He
concedes that there was a "whiff of barbarity" about the rioters
who torched the suburbs of France in 2005, but cannot bring himself
to agree with Sarkozy, who condemned them as "scum," for, he admits,
all the historic riots so beloved to the collective memory of the Left
were barbarous. "The Paris Commune, for example . . . do we really
think that event was purely grandiose, majestic and glowing, worthy
of entering, all of a piece, the golden legend of the Republic?" No,
I don’t. But I’m not the one with a contradiction in thought to defend.

Levy rightly deplores the exclusion of these banlieues,
suburban ghettos, from French society. He sympathizes with their
inhabitants. But he does not ask — much less answer — the important
questions, important, at least, if he is trying to buttress the case
against Sarkozy he implicitly sets out to make. Beyond saying that
this situation makes him feel bad — because he is a sympathetic man
— and beyond suggesting that it might be best for France were its
leaders to use mollifying rhetoric to describe the inhabitants of
the suburbs (rather than suggesting, as Sarkozy did, that they be
treated to the business end of an industrial-strength fire hose),
what can be done to improve things?

Here there is an important debate between the Right and the Left,
one that is of much greater moment than a debate over rhetoric:
Should France attempt to reduce barriers to entry into its workforce
by liberalizing its economy? Or should the state instead redistribute
income from France’s wealthier citizens to the inhabitants of the
suburbs? I am willing to be persuaded that the more sophisticated
theorists of the Left may have something worthwhile to say about
this, but is it too much to ask to see the argument and look at the
evidence? An appeal for compassion for the wretched of the banlieues
is not a policy prescription. Nor is it a reason to regret the defeat
of Sego, who more than ever seems determined to become the Eva Peron
of French political life.

But then we come to the second half of the book, where Levy
denounces the anti-Americanism and anti-Semitism of the modern
Left, and here something remarkable occurs. Now, I confess to an
interesting experience: I read this book out loud. This, obviously,
is how Levy intended it to be read, and read this way, this part of
the book is exceptionally effective. Those easily mocked exclamation
points and sentence fragments and one-sentence paragraphs and long,
run-on passages when declaimed acquire an extremely powerful rhythm.

My listening audience was a Turkish friend (I live in Istanbul)
of half-formed but vaguely leftish political sensibilities, prone,
like most Turks, to believing the worst of America and raised in a
climate where the proposition "Israel is the world’s worst nation"
is taken as a self-evident statement on the order of "The Armenians
had it coming." When I came to the passages in which Levy denounces
the moral disgrace, the appalling apologetics, the sheer imbecility
of a Left that would dismiss the suffering of the persecuted of Darfur
on the grounds that admitting it might encourage the Americans — the
Empire — to intervene, I saw something in his eyes that I had not seen
before: a visceral and emotional understanding. For Levy’s voice, here,
is powerful, it is scathing, it is thunderous and outraged; it places
this failure in its historical context, it is deeply learned and rich
with authority, and it is the best indictment of its kind in print.

His condemnation of the 2001 anti-racism conference in Durban
is masterly. His reply to those who would diminish or deny the
Holocaust is eviscerating. His response to apologists for fascist
Islamic movements is furious and deserves to be the final word on the
subject. It is entirely worth suffering through the book’s first half
to reach his devastating rebuke to Chomsky, Pinter, Badiou, Galloway,
Carter, and a long list of similarly craven fools.

Thus the book leaves the reader with a question. If Levy knows all
of this, and obviously he does, why was he "literally incapable"
of voting for Sarkozy? Why did he bother with the first half of this
book at all? Surely a man of his intellect isn’t really persuaded by
the silly arguments he makes in defense of the Left? There are deep
and unexamined emotional issues at work here, but the book is no less
fascinating for that.

Claire Berlinski is the author, most recently, of "There Is No
Alternative": Why Margaret Thatcher Matters.

–Boundary_(ID_pztseOva1zAbjAg21IHBHQ)–

Hovnanian says debt exchange undersubscribed

Hovnanian says debt exchange undersubscribed
Thu Dec 11, 2008 1:42pm EST
By Helen Chernikoff
NEW YORK, Dec 11 (Reuters) – Hovnanian’s recent debt exchange did not
lower its outstanding debt as much as it could have, but it is a first
step in a series of debt reduction moves, including more exchange
offers, Chief Financial Officer Larry Sorsby told Reuters.
Through the exchange, the No. 6 U.S. homebuilder reduced its outstanding debt
of about $2.51 billion by $42.1 million, Sorsby said.
It traded various unsecured senior notes for senior secured notes, due 2017,
with an 18 percent interest rate on the condition the holders accept a loss
of their original value in the range of 53 percent to 60.5 percent, according
to a company statement.
Hovnanian extended the offer in late October to holders of $1.5
billion worth of notes, but only $71.4 million worth of the company’s
noteholders accepted, likely because they refused to accept the heavy
discount, said analyst Vicki Bryan of Gimme Credit, a corporate bond
research firm.
Ultimately, Hovnanian issued $29.3 million of the new notes, according to a
Dec. 8 filing with the U.S. Securities and Exchange Commission.
If the company had found enough takers among its noteholders, it could have
lowered its absolute debt by about $350 million, said Fitch Ratings analyst
Robert Curran.
"In the end, there wasn’t enough interest to move the needle on the company’s
capital structure," Curran said.
But Sorsby sees this exchange as a start.
"While we did not capture as big of a discount as we would have had
the exchange been fully subscribed, we did reduce our outstanding
debt," Sorsby said.
"We believe that there are other initiatives we can take to reduce our debt
in the future, including additional exchange offers."
Bryan also sees more exchange offers in builders’ futures, as they struggle
to cope with the squeeze between debt expense and dwindling cash, Bryan said.
Over the course of the U.S. housing slump, banks have cut back their
agreements with the builders. Also, next year, the builders cannot rely on tax
refunds as they have until now because the provision that made them possible is
expiring.
"They won’t sell enough homes to save them, so where are they going to get
their cash?" Bryan said. "They have to get their debt down somehow." (Editing
by Andre Grenon)