Author: Vasilian Manouk

THE REGISTRATION DEADLINE FOR THE PRE-PAY CARDS OF "ARMENTEL" AND VIVACELL IS PROLONGED TILL MARCH 1 OF 2008

Mediamax, Armenia
Oct 30 2007

Yerevan, October 30 /Mediamax/. The Public Services Regulation
Commission (PSRC) of Armenia made a decision today to prolong the
registration deadline for the pre-pay cards of "ArmenTel" and VivaCell
operators up to March 1 of 2008.

As the Chairman of PSRC Robert Nazarian stated during the session
today, the necessity to make the given decision was based on the fact
that long lines were formed in the subscribers’ service points.

According to the latest data, by October 30, only 25% of the prepay
subscribers of "ArmenTel" and 17% of VivaCell prepay subscribers have
managed to register their cards.

WHY KARABAKH HAS NO INFORMATION POLICY

KarabakhOpen
29-10-2007 18:14:19

Over the past 15 years the Karabakh government has not focused on
the information policy, said the editor of the Chto Delat Newspaper
Murad Petrosyan during the round-table meeting in NKR with Russian
and German experts.

"Karabakh is not in blockade. The systemic propaganda war currently
waged in the region strongly affects the public consciousness of the
international community. And since the Azerbaijani machine is mostly
active, the world is now using the Azerbaijani phraseology to refer
to the conflict.

Karabakh is not offering anything in return. The latest example is
the visit of the Azerbaijani delegation led by their ambassador to
Russia. In answer to the activities of the Azerbaijani media which
have posted an immense amount of information on web sites, Karabakh
is silent," Alexander Krilov, a Russian political scientist, says.

During the round-table meeting a number of opinions were heard,
confirming that Karabakh is not providing enough assistance and
content for an information policy. Meanwhile, the information space,
unlike all the rest, has no limits, and even not being recognized
cannot be a hurdle for an information policy. It takes only wish and
an awareness of objectives to conduct a policy. Karabakh need not
falsify, misinform like others, we have enough political arguments.

"I hope after the election of the new president reforms will be
carried out in this sphere as well," said one of the participants of
the meeting.

Fresno Bee , CA
Oct 27 2007

ANALYSIS: Armenian genocide term a tough political sell

Issue — including the recent resolution — puts lawmakers in a bind.

By Michael Doyle / Bee Washington Bureau

WASHINGTON — Armenian genocide resolutions such as the one that
collapsed this week confound congressional leaders and presidential
candidates alike.

Promises come easily and are politically alluring. Delivery is
difficult, as House Speaker Nancy Pelosi now has learned the hard
way.

Failure brings second-guessing and no guarantee of when the
resolution might return.

"We’ll continue to stay focused on this," said Rep. Jim Costa,
D-Fresno, a member of the House Foreign Affairs Committee. "We’ll
await our time."

The resolution declares that "the Armenian genocide was conceived and
carried out by the Ottoman Empire from 1915 to 1923" and "1,500,000
men, women and children were killed."

Turkish officials say the resolution twists history, and they
reported spending $300,000 a month lobbying against it earlier this
year. Bush administration officials say the resolution undermines
relations with a country that borders Iraq and Iran.

Late Thursday, resolution supporters asked Pelosi to put it off until
a "more favorable" time. Translated: They lack the votes.

Publicly, supporters say they can still win before the 110th Congress
ends next year.

"We’re going to be working this really hard," Rep. Adam Schiff,
D-Pasadena, said Friday. "When we bring it up, we want to be
absolutely confident we have the votes."

Skeptics — some of them resolution co-sponsors — are doubtful. One,
Rep. Devin Nunes, R-Visalia, said Friday that there was "zero" chance
of reviving the measure next year.

"Democrats aren’t going to bring it up," Nunes said. "They’ve got
shaky feet."

Nunes speculated that the letter sent by Schiff and others to Pelosi
late Thursday afternoon amounted to political cover, a concession of
defeat also designed to shield the Democratic leader from criticism
about letting the bill die.

Undeniably, the genocide resolution puts lawmakers in a bind, and
Pelosi wasn’t the first leader to get entangled in it.

As candidates, George W. Bush and his father, George H.W. Bush,
endorsed the Armenian genocide characterization. They did so in
statements to Armenian-American voters, a political force in certain
regions.

As presidents, both subsequently repudiated the term. Neither used it
in annual commemorations of the 1915-23 Ottoman Empire horrors.

"These are not the Ottomans," Secretary of State Condoleezza Rice
told the House Foreign Affairs Committee on Wednesday. "What we have
tried to do instead is to get the Turks and the Armenians to work
together to look to their future."

President Clinton likewise avoided the Armenian-genocide phrase.

The rhetorical hesitancy, said Elizabeth Chouldjian of the Armenian
National Committee of America, "is not a Republican or a Democratic"
trend. Instead, it reflects the difference between a candidate
seeking domestic votes and a governmental leader on the world stage.

The same conflict, between politics and governance, can trip up
congressional leaders.

Then-House Speaker Dennis Hastert reportedly pledged in 2000 that
he’d bring a genocide resolution to the floor. He made the promise
while campaigning for Republican incumbent James Rogan, challenged by
Schiff in a district with many Armenian-American voters.

At the last minute in October 2000, Hastert pulled the bill at
Clinton’s behest.

Pelosi’s turn came this month, after the House Foreign Affairs
Committee approved the genocide resolution by 27-21.

"I said if it comes out of committee, it will go to the floor,"
Pelosi said Oct. 11. "Now it has come out of committee, and it will
go to the floor."

She left no wiggle room. But behind the scenes, her lieutenant, Rep.
John Murtha, D-Pa., was advising her that the resolution was a losing
idea. In barely a week, 14 members of the House of Representatives
withdrew their co-sponsorship.

The Record (Bergen County, NJ)
October 25, 2007 Thursday
All Editions

Church leader sees kids as path to hope;
Fair Lawn to host Armenian cleric

By JOHN CHADWICK, STAFF WRITER, North Jersey Media Group

With his black robe, black hood and gold icon, the spiritual leader
for Armenian Christians personifies a solemn, Old World tradition.

But on Saturday, he’ll arrive at a Fair Lawn church to chat with a
younger generation.

His Holiness Karekin II, visiting from Armenia, will conduct a
worship service and eat lunch with nearly 500 children ages 5 to 17
at St. Leon Armenian Church – part of his effort to push this ancient
Christian denomination into the 21st century.

"His Holiness feels very strongly that the youth are not only the
future of the church, but the present," said the Rev. Diran Bohajian,
pastor of St. Leon. "He wants to have a real relationship with them
and show them the importance of our church in our everyday life."

Karekin, supreme patriarch for the Armenian Apostolic Church, has
been hailed for rebuilding his country’s church after decades of
oppression under the Soviet Union. He has been spiritual leader for
most of the world’s 8 million Armenians since 1999.

Making a rare, monthlong tour of the United States, he’s now getting
acquainted with an established, successful Armenian-American
community whose challenge isn’t fighting communism but resisting the
lure of assimilation in a prosperous, multi-ethnic nation.

Anticipation for his North Jersey appearance is high. Young people
from 14 churches and day schools in New Jersey, Pennsylvania,
Connecticut and New York are expected to attend.

"He has a wonderful way of relating to children," said Dennis
Papazian of Woodcliff Lake, who has two daughters attending the
event. "He has a simple way of showing his love and God’s love."

Armenians trace their church to the year 301, when Armenia became the
first country to adopt Christianity as its national religion. The
country has had a turbulent history – including mass killings by the
Ottoman Turks during what’s commonly called the Armenian genocide
from 1915 to 1923.

Armenians began coming to North Jersey in the late 19th century, with
the major waves coming in the years immediately after the
persecution. A small but tight network of churches is still
flourishing. And at a private Armenian-run day school in New Milford,
students still learn the Armenian language and recite prayers in
class.

But like other churches built around national origin, the Armenian
community faces a challenge in keeping a younger generation of
Americans invested in the tradition.

St. Leon’s, for example, has recently come up with a way to keep
people from getting lost in a prayer book that has sections in
English, modern Armenian, classical Armenian and the English
transliteration.

The church has purchased an electronic page reminder to help people
keep their place during the service, which is completely in Armenian
and lasts more than two hours.

"Not everyone speaks Armenian and some people have difficulty
following our liturgy," Bohajian said. "We’re doing whatever we can
to help people grow in their faith."

Meanwhile, Karekin’s U.S. appearances have had a decidedly upbeat,
energetic tone similar to the barnstorm evangelizing of the late
Roman Catholic leader Pope John Paul II. He has held interfaith
meetings, helped paint a house in Katrina-devastated New Orleans and
ventured far beyond the Armenian enclaves on the coasts to visit
small churches in the South and Midwest.

He has also encouraged younger Armenians to retain their heritage and
use their faith to improve their own country.

"Be faithful Americans and never forget your Armenian Christian
identity, bringing it home as part of your daily lives," he said in a
meeting with young professionals in Boston.

TER-PETROSYAN PROMPTED KOCHARYAN AND SARGSYAN THE LAST OPTION FOR REMAINING IN HISTORY ~

Lragir
Oct 26 2007
Armenia

This government is a kleptocracy," stated the first president of
Armenia during the rally on October 26 who repeated his September
21 statement that this government is guided by kleptocratic rules,
is corrupt and vicious, a structured system of mobsters. "This system
guarantees the welfare of a limited group of people who control all
the levers of government through oppressing and robbing people,"
Levon Ter-Petrosyan says.

According to him, the Armenian government is a monolith pyramid
at the top of which is Robert Kocharyan. Below Kocharyan is Prime
Minister Serge Sargsyan, according to Levon Ter-Petrosyan, and the
third and the fourth are Hovik Abrahamyan, the vice prime minister,
and Armen Gevorgyan, the head of the president administration. "Then
come the majority of ministers, deputy ministers, governors, as well as
some notorious mayors and heads of communities," Levon Ter-Petrosyan
says. In his opinion, a few essential links sustain the activities
of this criminal structure. The first is the head of the president
administration Armen Gevorgyan, whose influence, according to the
first president, was especially big during the office of the prime
ministers Andranik Margaryan and Armen Darbinyan. "When in fact Alexan
Harutiunyan and Armen Gevorgyan made decisions on appointments,
conditions of trade, granting privileges, unfair auctions and
tenders." The next important link, according to Levon Ter-Petrosyan, is
the customs service led by Armen Avetisyan. "Whose function of customs
control and legal customs fees has transformed into government-level
smuggling," Levon Ter-Petrosyan says. The other link supporting the
pyramid is, according to Levon Ter-Petrosyan, the office of prosecutor
general and Prosecutor General Aghvan Hovsepyan. He and his office,
according to the first president, guarantee the legal security of the
kleptocracy. The next link, according to Levon Ter-Petrosyan, is the
Central Bank whose monetary and loan policy and the suspicious game
with the exchange rates of currency is ruining the country’s economy
and wastes over 40 percent of the real value of remittances. And
lastly, Levon Ter-Petrosyan mentions the Public Television headed
by Alexan Harutiunyan which ensures the propaganda in defense of
the regime and tries its hardest to defame its opponents. After
the definition and structured revelation of the government Levon
Ter-Petrosyan touched upon the moral, psychological, political,
economic, social consequences of the rule of this regime, which has
turned Armenia into an "outcast", the population is impoverished,
even though the government is demonstrating tiger bounces through
juggling of statistics. "However, research by serious economists
shows that these indices are false, and the annual growth in reality
is hardly 3-4 percent. What is the secret of appearance of those
two-digit numbers? It turns out that there is no secret. The figures
of the economic growth are direct correlation with the dynamics
of remittances," Levon Ter-Petrosyan says, adding that it means if
the Armenian economy develops, it develops outside Armenia. "At the
expense of the muscle energy of hundreds of thousands of Armenian
migrant workers in Russia," Levon Ter-Petrosyan says. He also spoke
about black economy because, according to him, black economy is one
that is out of the control of the government. "It is found everywhere,
even in the most developed and legitimate countries.

Meanwhile, the ruling system in Armenia is so organized and powerful
that nothing avoids its control, even a proprietor who earns 200
dollars. In other words, all kinds of criminal economic activities
are carried out by it. Consequently, it is not black economy but
flagrant robbery, extortion, and two budgets accrue in Armenia, one
is the official budget, the other is in the pocket of the government.

In addition, calculations show that the second is much bigger than
the first," Levon Ter-Petrosyan says. He says, however, he does not
think the government, which comprises conscientious professionals,
provides false data to the government. Levon Ter-Petrosyan believes
that the data are initially correct but they are distorted before
offering to the society. According to him, the judicial system also
serves the government, and recent evidence is Justice Pargev Ohanyan’s
punishment who dared to make a decision on acquittal.

However, Levon Ter-Petrosyan points out that he does not mean thousands
of lower-ranking judicial and low enforcement officials who are
honest and conscientious professionals. "They are also humiliated
and insulted by the regime like the rest of people. They are not
expressing their feelings because of the lack of an alternative,
but they will unanimously join the surge of popular movement. The
same is with the police, like in 1988, during the national movement,"
Levon Ter-Petrosyan says. Nevertheless, Levon Ter-Petrosyan said this
criticism and attitude gives him pain because both Robert Kocharyan
and Serge Sargsyan were his personal and military friends not a long
time ago. "Personalities whose names should be out down in the modern
history of the Armenian people.

Their behavior after 1999 cannot erase or cast a shadow on them, as
well as the undeniable and considerable role of Samvel Babayan in the
liberation of Artsakh, restoration and strengthening of the Armenian
state. My tough statements do not aim to defame or condemn them,
and are out of sheer necessity to prevent the reproduction of the
regime," Levon Ter-Petrosyan stated. He even said Robert Kocharyan
and Serge Sargsyan will stand a chance to keep their good name in
the history of independence of Armenia if they leave the political
arena voluntarily. The first president also stated that his attitude
is not due to their Karabakhi origin. "If they deserved, they would be
welcome to rule in Armenia for one hundred years, like their ancestors,
the Hetumians from Artsakh who ruled the Kingdom of Cilicia for 150
years," Levon Ter-Petrosyan says. He condemns all efforts to tap a
wedge between the Armenians of Karabakh and Armenia, describing them as
unfair and dangerous. "Therefore, I will be trying my best to prevent
this mindset from spreading and becoming rooted. Especially that 99
percent of the pillars of the government system created by Kocharyan
and Sargsyan are Armenians of Armenia rather than of Karabakh,"
Levon Ter-Petrosyan says.

THE USA PLANS UNPRECEDENTED SANCTIONS AGAINST IRAN.

PanARMENIAN.Net
25.10.2007 GMT+04:00

Iran, with its oil and gas supplies may divide up Iraq’s share if
the USA manages to take advantage of the Iranian opposition living
in the West.

Iran nuclear problem still continues to be the trouble for the Bush
Administration. The USA plans unprecedented sanctions against Iran,
particularly against guard Corps of Islamic Revolution, which are
accused of creating weapon of mass destruction and supporting terrorism
on state level.

/PanARMENIAN.Net/ The Administration made this decision because Iran’s
position hasn’t changed. "Our diplomacy must be stronger and more
effective," writes The Washington Post. New sanctions condemn Iran
to complete economic isolation, especially regarding its military
sphere. "Iran’s policy poses an immense challenge to the American
security and our interests in the Middle East, and perhaps in the whole
world, because the combination of terrorism, repression in the country
and the striving to get nuclear technology for weapon manufactory, is
a very dangerous," announced the Secretary of State Condoleezza Rice
in her speech delivered in the U.S. House Committee on Foreign Affairs.

All these accusations are not new; the situation is almost like the one
during the Invasion of Iraq; the same accusations, the same threats
and chaos, and disintegration of Iraq into several "independent"
provinces, whose significance is determined by the oil supply the given
province possesses. The Province of Kurdistan is on the first place,
which is the reason why the USA doesn’t want to have problems with
Turkey and try its best to "dissuade" the government of Erdoghan off
the invasion of the North. Iran, with its oil and gas supplies may
divide up Iraq’s share if the USA manages to take advantage of the
Iranian opposition living in the West. The USA may also stake on Baku,
taking the claims of Azerbaijan on the part of Iran, which Baku calls
Southern Azerbaijan.

The truth is though, that Europe tries to come to an agreement
with Iran, realizing very well the consequences of just another
conflict. So, Iran and EU called the negotiations on Iran nuclear
problem constructive. Such announcements were made by the High
Representative for the Common Foreign and Security Policy Javier
Solana and the former secretary of the Supreme National Security
Council of Iran Ali Larijani, who participated in the meeting as a
special representative of the spiritual leader of Iran Ayatollah Ali
Khamenei. True, the leader of the Iranian delegation is Saeed Jalili,
who was appointed the secretary of its Supreme National Security
Council, however this doesn’t change anything. Javier Solana also
expressed his hope that the dialogue on the resolution of the Iran
nuclear problem will continue till the end of November.

According to President Mahmoud Ahmadinejad, Tehran is ready to carry
on the negotiations over its nuclear program, but doesn’t intend
to discuss its inalienable rights with anyone. "Iran doesn’t agree
with moratorium on uranium enrichment like it is desired by the
international community who fears the fact that Iran may in future
possess military nuclear technologies. Soon the new phase of Iranian
diplomacy is being activated, the official figures of the country are
going to visit different countries, and foreign representatives will
visit our country. I will pay new visits to the foreign countries
as well.

During these visits different consultations and negotiations
having essential influence on the international atmosphere will be
carried. Economic agreements are going to be signed as well," said
President of Iran.

In his turn, Iran’s Interior Minister Mostafa Pur-Mohammadi promised
that in case of the nuclear attack by the USA on his country, the
Republic will not make revanchist actions in regard with the Persian
Gulf countries, where the U.S. troops are always dislocated. The
Iranian Minister mentioned that in its policy Iran doesn’t give up
its principles of developing two-sided relations with the countries
of the Persian Gulf. Pur-Mohammadi highly appreciated the position
of these countries, which had refused to put their territories under
the US disposal to attack Iran, says the Agency "Sinkhua"

Armenia is in a more complicated situation. In case Iran is attacked,
Armenia will find itself in complete isolation. Though not everything
is that bad; as the temporary charge d’affaires for the USA in
Armenia Rudolf Perina announced, the U.S. government approaches the
Armenian-Iranian relations with understanding. According to his words,
the USA is perfectly aware that the only land route from Armenia passes
through Iran. "We understand all the difficulties of your situation and
this issue has been discussed in Washington with the RA Prime-Minister
Serge Sargsyan. Along with this, the U.S. government is concerned with
the development of the situation regarding the Iran nuclear problem. We
hope that the issue will get peaceful resolution," said Perina.

Meanwhile it should be mentioned that the sanctions that the US is
going to apply will not have any effect on Turkey either, which by
the way has signed a contract with Iran about cooperation in field
of energy, in spite of the strong opposition of the US.

FRENCH PM DESCRIBED RELATIONS WITH ARMENIA AS BRILLIANT

PanARMENIAN.Net
26.10.2007 14:40 GMT+04:00

/PanARMENIAN.Net/ Armenian Prime Minister Serge Sargsyan, currently
in France on a formal visit, met yesterday with his French counterpart
Francois Fillon, the RA government’s press office said.

The French PM described relations with Armenia as brilliant,
specifically in the sphere of politics, education and
self-government. Economic relations are also rapidly developing,
according to him. "With its huge economic capability, France can
contribute to Armenia’s development," he said.

For his part, Serge Sargsyan noted the increasing French capital in
the Armenian economy.

The Prime Ministers also referred to stability issues in the Caucasus,
the Karabakh peaceful process and forthcoming presidential elections
in Armenia.

Serge Sargsyan invited his French counterpart to Armenia. Francois
Fillon accepted the invitation with pleasure

LANDMARK RULING ALLOWS DEPORTED HUSBAND TO STAY IN CYPRUS
By John Leonidou

Cyprus Mail
Oct 26 2007
Cyprus

A MAN who was barred from Cyprus despite being married to Cypriot has
won a court battle to stay in Cyprus. Armenian Spartak Petrosian and
his wife Siranush had launched an appeal at the Supreme Court after the
immigration services ordered him to be leave the country. The court
ruling, released yesterday, stated that the rights of Petrosian had
been violated because he was married to a woman with a Cypriot passport
and therefore could stay, not only in Cyprus, but anywhere in Europe.

The court described the government’s assumption that certain EU laws on
free movement did not apply to Cyprus as "illogical". The Petrosian
couple’s defence lawyer, Yiannakis Erotokritou, had launched the
appeal against the government, and more specifically the Interior
Ministry and Immigration Services, citing two violations of his
clients’ rights:

1) That the husband had received a letter from immigration informing
him that he had to leave Cyprus despite being married to a Cypriot
woman and having three Cypriot children.

2) That the wife also had her rights as a European citizen violated by
the order to have her legal husband deported. Civil Engineer Spartak
and his wife Siranush – a qualified doctor – arrived on the island
in December 1993. In October 2001, Spartak was jailed for nine months
on pimping related charges. Claiming his innocence, Spartak launched
an appeal at the Supreme Court and his conviction was quashed in
February 2003. But around a month later he was informed that he would
nevertheless be deported, something which eventually happened on May
7, 2003. While Spartak was out of the country, his wife applied for
Cypriot citizenship, which was granted to her in February 2005. When
his wife underwent surgery towards the end of 2005, Spartak was given
special permission to come to the island and be by his wife’s side.

But he was later informed by immigration that his application to have
his stay extended to be with his recovering wife had been denied. It
was then that the couple decided to take the matter to court. In
his ruling, Judge Frixos Nicolaides observed a bizarre sequence of
events. There appeared to be a string of letters sent to Siranush,
in which her husband was being ordered to leave the island, even
after he had left. What was even more puzzling was the fact that the
state attorney had argued that Siranush’s request to the immigration
authorities to have her husband by her side had been accepted by the
services and even presented to the court the letter which had been
sent to her. "On the right side of the letter, dated February 20,
2006, it says ‘extension for residence until February 28, 2006 is
accepted’ but it doesn’t state who it is written by," said Judge
Nicolaides. "It is also doesn’t state if it has been approved by a
higher authority because it bears no signature. "Quite the opposite,
on February 13, 2006 she [Siranush] was sent a letter informing her
that her application had been rejected and that her husband should
make arrangements to leave the island because his permit had expired
on January 29, 2006." The judge continues, "And that it is not all.

At the bottom of a letter, dated February 6, 2006, there is the
handwritten word ‘he has departed’. Again, no detail as to who wrote
the letter was ever given. So the question remains, why did they ask
him to leave in the letter dated February 13, 2006, if it was stated
[in the previous letter] that he had already left?" Judge Nicolaides
also dismissed an argument from the state which noted that a law not
to deport relatives of EU citizens did not apply to Cyprus.

"It is my conclusion to reject the position of the state which noted
that the law applies only to relatives of EU member states and not
to relatives of Cypriots. Such a thing would be illogical but would
also be discrimination towards Cypriot citizens." Commenting on the
violations of the couple’s rights, with the immigration services
not allowing her husband to stay in Cyprus, the judge said: "The
law stipulates free movement for EU residents and their families
including Cyprus."

BANKS AS MOVERS OF CORPORATE MANAGEMENT SYSTEM WITH ENTRY IN IPO PROMOTES DEVELOPMENT OF COUNTRY’S ECONOMIC SYSTEM: MOST OF PARTICIPANTS OF ARMENIA’S FINANCIAL MARKET BELIEVE

arminfo
2007-10-26 08:57:00

ArmInfo. Most of the financial analysts, representatives of the banking
sector, Heads of investment companies and experts of Armenia believe
that entry of the Armenian banks in IPO as a main source of capital
is one of the ways of development of the banking sphere and the whole
economic system of the country. That is the result of voting of the
"British debates" held in the "Marriott Armenia" Hotel on October 25,
organized by the "AmRating" independent Rating Agency, a member of
the international Global Rating Group. The debates, in which about
40 banks, Heads of investment companies and experts took part, were
dedicated to the topic "Armenian banks: from closed model to IPO as
the key source of capital. Is that the way of development?". The event
was held under support of the Union of Banks of Armenia. Member of
the Council of RA Central Bank Vache Gabrielyan expressed an opinion
that only the "ACBA Credit Agricole", among the Armenian banks,
has a chance today to enter the external IPO.

To note, the biggest European banking group, the "Credit Agricole"
owns 28% block of stock of this bank. Head of the ARARATBANK’s
Dealing Center David Harutyunyan considers it apparent that the
banking system of Armenia needs an additional capital as RA financial
market is at an early stage of development that makes the process
of attraction of long-term resources difficult, while the foreign
capital will give the banks an access to such funds that will allow
them to reduce the financial risks in general. He paid attention
to the growing competition and said that it is difficult for the
banks with the Armenian shareholders to compete with the banks
with a foreign capital, among which are the "HSBC Bank Armenia",
"VTB-Armenia" and Moscow’s Gazprombank, which intends to enter the
Armenian banking market soon, the international microcredit bank
ProCredit, "Raiffeisen bank Austria". It is difficult to compete
with such financial structures not only materially but on the banking
technologies as well, D. Harutyunyan said.

As for the demand for the Armenian banks’ capital, the latest events
in this market confirm this, which is promoted by quick rates of
the country’s banking system development: the total assets of banks
in 2006 grew by 19%, the profit – by 16%. In addition, the demand
for the banking capital is presented not only by foreign investors
but the Armenian businessmen as well. He thinks that is hindered
by a psychological barrier of the main shareholder, wishing to
keep control over the bank in every way. However, "it is better
to have a small share in a big capital than a big share in a small
capital". D. Harutyunyan thinks that IPO may be considered as the
most attractive version of opening for the Armenian banks as it will
enable the main shareholder to keep the control. Placement of the
shares at foreign exchanges shows the real price of the share to the
shareholder. "The bank’s entry the IPO as a main source of capital
is our future", D. Harutyunyan said.

Head of the Department of Strategic Planning, Methodology and Risk
Assessment of the ARARATBANK Hovhannes Mandakuni emphasized that
transparency should be meant under IPO, in view of which he expressed
confidence that such readiness will be evident in the whole banking
community of Armenia within several months.

"Implementation of the corporate management principles will enable
to solve this For his part, USAID Financial Sector Deepening Project
Intermediation Team Leader Tigran Davtyan thinks that this aspect
will have some difficulties in Armenia for several reasons one of
which is unwillingness of the bank’s main shareholder to share with
someone. "The matter concerns the international organizations which
are present in the Armenian banks’ capital. There will hardly be an
investor who will express readiness to buy 25% of the capital. Neither
our shareholders or the society are ready for that. However, the best
should be done to prepare them", T. Davtyan said. He thinks that the
Armenian banks are not yet ready to enter the foreign IPO, especially
as this is connected with definite preparation and additional expenses,
however, the IPO can be also made in the internal market, for which
some banks are ready. This will be a kind of training.

Co-Director of AEPLAC (Armenian-European Policy and Legal Advice
Center) Tigran Jrbashyan thinks that Armenia’s banking system has
entered a development stage, when inertia changes by a definite
jump. This is determined only from the position that the banking
sphere, by its level of capitalization and abilities to work with
a real sector, is very small but rather "pleasantly completed" and
shown off. He thinks that sale of banks via IPO is more profitable
than to strategic investors as the price will be much higher, and
only this fact may promote the banks to IPO realization.

Under the growing competition, the own funds of the banks and their
owners will be insufficient to withstand it. "The real IPO in the
inner market is possible only in case if the Armenian capital market
is able to give this price, otherwise, it may turn out in a situation
in which several eastern-European countries turned out to be. The whole
banking system there turned out to be "captured" by strategic investors
in the name of the western, Kazakh and Russian banks", he said.

For his part, President of the Global Rating Group Richard Hainsworth
emphasized that the banks should be maximum open and transparent
to enter the IPO. He thinks that there are potential partners in
Armenia, ready to make investments in the banks’ capitals. However,
the point is that this structure is engaged in its real business of
a final mediator, or it is a shell for financial manipulations. In
the first case, the investments in the bank will be made, while
in the second case, no partner will desire to be engaged in such a
business. R. Hainsworth thinks the preparatory work for the banks’
entry the IPO should be started right now.

Head of the leading Armenian Consulting Company, the Ameria, Andrey
Lazarian thinks that the first IPO (there should be no serious
placement in Armenia) are very important for creation of tradition,
culture and for a reverse communication with investors both inside
and outside the country.

"Globally, absence of transparency, availability of protectionism and
corruption are the most fundamental problems. The reporting should be
opened to the maximum for entry in the capital market and for access
to the resources of this market", he said.

To note, AmRating – is an independent national rating agency, a
member of GlobalRating group that comprises also RusRating (Russia)
and KzRating (Kazakhstan) agencies. It provides bank credit ratings
and analytical reviews of different segments in the Armenian financial
market.

OSCE MINSK GROUP TO REVISIT YEREVAN OCTOBER 27

ARMENPRESS
Oct 25, 2007

YEREVAN, OCTOBER 25, ARMENPRESS: International peace brokers will
pay another visit to Armenia on October 27, foreign minister Vartan
Oskanian revealed today.

The French, Russian and American cochairmen of the OSCE Minsk Group
visited Yerevan on October 24 and proceeded then to Azerbaijan. Before
leaving the region they will come to Armenia to present the results
of their meetings with Azerbaijani leadership, Oskanian said.

Oskanian said little time is left before the presidential elections in
Armenia and Azerbaijan and because of this the presidents of Armenia
and Azerbaijan will not have a chance for a face-to-face meeting and
this is why the cochairmen have to step up their efforts.

He said the peace brokers will try to narrow the differences of the
sides and achieve a positive result before the presidential election.

‘There are few sticking points, but there are also a great deal of
issues which the sides have agreed upon. We hope to fix what has been
achieved so far and add it by what has been agreed upon by the sides,
" he said.