Category: News

LIABILITIES OF ARMENIA’S BANKING SYSTEM DECREASE BY 1.4% IN SECOND
QUARTER OF 2004
YEREVAN, JULY 28. ARMINFO. Total liabilities of the country’s banking
system, decreased by 1.4% in the second quarter of 2004, making up
255.2 bln drams by July 1, 2004. It was accounted for by a decline in
a number of indicators in the structure of liabilities, the
press-service of the Armenian Central Bank told ARMINFO
In particular, the liabilities to banks and other financial
orgnaizations totaled 33.8 bln drams, decreasing by 19.7%. At the same
time, a 36.7 per cent growth was fixed on the funds on correspondent
accounts, which reached 5.4 bln drams. Liabilities to the Government
decreased by 3.1% in the quarter under review, totaling 12.8 bln
drams. Fixed deposits of natural persons decreased by 2.3%, totaling
50.9 bln drams, while fixed deposits of legal entities increased by
5.5%, reaching 26.9 bln drams. Call liabilities increased by 2.4%
totaling 114.2 bln drams. Other liabilities increased by 15.4%,
reaching 15.3 bln drams. The paid interests increased by 1.8%,
reaching 1.3 bln drams.
According to the ranking of Armenian’s commercial banks drawn up by
ARMINFO news agency, in the first half of 2004 the liabilities of 14
commercial banks increased, the highest growth was fixed on 3 banks,
including Artsakhbank (48%). As to the remaining 5 banks, liabilities
decreased, with one bank showing the lowest indicator.
The results of the activity of the banking system, on June 30, 2004,
were summed up on the basis of data of 19 normally operating banks,
the CB press-service reports.

AGGREGATE ASSETS OF ARMENIA’S BANKING SYSTEM DECREASED TO 310.9 MLN
DRAMS IN SECOND QUARTER OF 2004
YEREVAN, JULY 28. ARMINFO. Aggregate assets of Armenia’s banking
system decreased by 0.2% in the second quarter of 2004, totaling 310.9
mln drams. The press-service of the Armenian CB told ARMINFO that it
was accounted for by a decline in the investments in other securities
by 81.4%, which totaled 3.4 bln drams on July 1, 2004. Besides, other
assets decreased by 14.6% in the quarter under review, totaling 2.6
bln drams. Demands to banks and other financial orgnaizations also
decreased by 14%, totaling 28.3 bln drams. In the structure of assets,
a 15.4% and 10.2% growth was registered in the crediting of natural
persons and legal entities, which made up 41.7 bln drams and 70.9 bln
drams respectively. A 7.6% growth was registered in investments in
state securities (36.3 bln drams), a 6.8% growth in correspondent
accounts at banks (63.4 bln drams), a 5.3% growth on the calculated
interests (1.9 bln drams).
In the second quarter of 2004 in the crediting portfolio, a 23.4%
growth was registered in investments in the sphere of transport and
communications (crediting totaling 1.02 bln drams on June 30), a 7.7%
growth in the trade sector (24.9 bln drams), 7.4% (8.9 bln drams)in
the agricultural sphere, a 12.3% (32.9 bln drams) in the financial
sector, a 18% growth (32,9 bln drams) in the volume of consumer
credits. At the same time, a 4.7% decline was registered in the
construction sector (5.1 bln drams).
Credits and receivables classified on risk groups decreased by 1.3% in
the second quarter of 2004, totaling 213.3 bln drams. As a result, on
June 30, “standard” credits totaled 97.7% or 208.5 bln drams,
“controlled” credits – 1.4% or 2.9 bln drams, “nonstandard” credits –
0.7% or 1.5 bln drams and “doubtful” credits – 0.2% or 379.9 mln
drams. In the quarter under review, some decline was fixed on all the
groups, with the most significant being on “doubtful” credits (64.7%).
According to the ranking of Armenian’s commercial banks drawn up by
ARMINFO news agency, in the first half of 2004 the general assets of
13 commercial banks increased, the highest growth was fixed on 3
banks, including Artsakhbank (40%). As to the remaining 6 banks, their
assets decreased, with one bank showing the lowest indicator (37.6%).
According to data of the Armenian CB, by June 30, 2004, 20 banks and
221 branches operated in the territory of Armenia, with one operating
in the special administrative regime of the Armenian CB. The results
of the activity of the country’s banking system were summed up on July
1, 2004 on the basis of data of 19 normally operating commercial
banks.

AZERBAIJANI FM: ISSUE OF U.S. MILITARY ASSISTANCE TO ARMENIA AND
AZERBAIJAN EXCLUSIVELY POLITICAL
YEREVAN, JULY 28. ARMINFO. Azerbaijani Foreign Minister Elmar
Mamedyarov expressed his dissatisfaction with various issues to the
U.S. authorities in the course of his visit to the USA. The minister
made this statement in his exclusive interview to the Azerbaiuani
newspaper Zerkalo.
His dissatisfaction was connected with withdrawal of Baku from the
program Millennium Challenges, in spite of the fact that Azerbaijan is
considered the strategic partner of the USA in the region, as well as
with the military assistance size to Azerbaijan and Armenia. He said
that despite the fact that the US Administration requested $8 mln for
Azerbaijan and $2 for Armenia, the Congress voted at the level of the
Committee for equalization of the military assistance. As a result,
the two states received by $5 mln each. Mamedyarov said that he had
touched upon the issue of the assistance to Karabakh, stating that the
Azerbaijani party must be informed how these funds are used, in order
to allow the use of these funds on settlement of the “occupied
territories” of Azerbaijan, first of all.
At the same time, commenting on the statement of the US Ambassador to
Azerbaijan that the size of the assistance is not important and that
one should not focus on it, Elmar Mamedyarov said that the words of
the Ambassador are partially true. “Because our cooperation in the
sphere of security is rather wide, including on several programs. For
example, talking to Colin Powel, I said that not the sum of the
assistance is in question, the more so as one cannot form an army on
$8 mln,” the minister said. He added that the issue of military
assistance is exclusively political. If Azerbaijan is partner of the
USA on the coalition and it sends its soldiers both to Iraq and Kosovo
unlike Armenia, their equalization means a possible political
assessment of the issue, the minister said.

OSCE MINKS GROUP CO-CHAIR-COUNTRIES ON SETTLEMENT OF KARABAKH CONFLICT
COME OUT FOR THEIR OWN INTERESTS, AND NOT FOR THOSE OF ARMENIA:
AZERBAIJANI FM
YEREVAN, JULY 28. ARMINFO. The OSCE Minks Group co-chair-countries on
settlement of the Karabakh conflict come out for their own interests,
and not for those of Armenia, said Azerbaijani Foreign Minister Elmar
Mamedyarov in his exclusive interview to the Azerbaijani newspaper
Zerkalo. He added that “each country wages its own policy in our
region.”
He said that the position of the OSCE MG co-chairs, “we will welcome
any agreement between Azerbaijan and Armenia,” does not correspond to
the realities necessary. “There is a fact of Armenia’s aggression,
occupation of the Azerbaijani territories, deportation of people,
ethnic purge. It is infringement of the norms of the International
Law. First of all, one should think of this. There is a cliche
‘Success has many parents, while failure is an orphan.’ If we agree
with Armenia, many countries will propose their services in the
settlement,” the minister said. He added that the most important is
that three key states in the world, the USA, Russia and France,
“proved to be able to call the things by their right names.”
As regards the settlement of the Karabakh conflict, the minister,
first of all, emphasized “the necessity of liberating the occupied
territories and returning refugees.” “A reasonable compromise on the
Armneian party can be only understanding of a refusal from the idea of
independent Nagorny Karabakh.”
At the same time, the minister said that he intends to insist on the
peaceful settlement scheme by the very end.

LIABILITIES OF CREDIT ORGNAIZATION IN ARMENIA DECREASE BY 5.3%
YEREVAN, JULY 7. ARMINFO. Total liabilities of credit orgnaization in
Armenia decreased by 5.3% in the second half of 2004, totaling 1.3 bln
drams on July 1, 2004, the CB press-service told ARMINFO.
According to the submitted data, in the structure of total liabilities
of credit orgnaizations, only fixed liabilities of natural persons
grew (21.5%), totaling 223.6 mln drams. Fixed liabilities of legal
entities decreased by 13.9%, totaling 811.4 mln drams. The paid
interests decreased by 41.8%, totaling 8.4 mln drams. Other
liabilities suffered a 5.3% decline, totaling 232.3 mln drams.
According to data of the CB, by July 1, 2004, 7 credit orgnaizations
and 1 branch operated in the territory of Armenia. At the same time,
Express-Universal, SEF-International and Gladzor are universal credit
orgnaizations, ACBA-Leasing and Agrileasing – leasing orgnaizations,
Arfin – credit union and “First Mortgage Company” – mortgage credit
orgnaization.

AGGREGATE ASSETS OF CREDIT ORGNAIZATIONS IN ARMENIA INCREASE TOT 3.6
BILLION DRAMS
YEREVAN, JULY 28. ARMINFO. Aggregate assets of credit orgnaizations in
Armenia increased by 10% in the second half of 2004 totaling 3.6 bln
drams, the CB’s Press-Service told ARMINFO.
According to the submitted data, the growth of the aggregate assets is
accounted for by a 2,804% increase in the crediting of the employees
of credit organizations and mutually-connected persons (22.5 mln
drams). Besides, demands to banks and other financial orgnaizations
increased by 189%, totaling 74.7 mln drams. Crediting of legal
entities grew by 19.4%, totaling 251.2 mln drams, natural persons by
23.7%, totaling 1.3 bln drams. Other assets increased by 115.1%,
totaling 414.9 mln drams. Leasing and factoring operations decreased
by 17.2%, making up 210.3 mln drams. Investments in state securities
decreased by 48.6%, totaling 149.6 mln drams. Cash decreased by 54.7%,
totaling 69.9 mln drams.
At the same time, in the structure of assets, a 20.8% growth of basic
funds was registered (479.6 mln drams on July 1, 2004), the calculated
interests grew by 46.9% (20.9 mln drams), current accounts in banks by
4.9% (441.6 mln drams).
Provision of crediting grew by 9.9% in the second quarter and reached
2.2 bln drams, which was accounted for by an increase in the volume of
crediting of the agricultural sphere by 4.3%, trade sector by 0.5%,
financial sector by 205.2%, on consumer credits by 17.2% and other
branches by 40.6%, which totaled 312.5 mln drams. 110.8 mln drams,
74.5 mln drams. 862.6 mln drams and 234.5 mln drams, respectively. In
the crediting portfolio, a 10.8% decline was registered in the
crediting of the industrial sector, a 1.1% in the sphere of
construction, 4.2% in sphere of transport and communications, which
totaled 497.0 mln drams. 88.8 mln drams and 2.2 mln drams,
respectively.
The credits and receivables classified on risk groups increased by
4.9% in the second quarter of 2004, totaling 2.9 bln drams. As a
result, on July 1, in the structure of crediting portfolio, “standard”
credits totaled 89.8% or 2.6 bln drams, “controlled” credits – 5.7% or
164.3 mln drams, “nonstandard” credits – 1.7% or 50.3 mln drams and
“doubtful” credits – 2.8% or 81.6 mln drams. In the quarter under
review, some 59.6% and 4% was fixed on “controlled” and “standard”
credits respectively. While, some 9.7% and 0.1% decline was fixed on
“nonstandard” and “doubtful” credits, respectively.
According to data of the CB, by July 1, 2004, 7 credit orgnaizations
and 1 branch operated in the territory of Armenia. At the same time,
Express-Universal, SEF-International and Gladzor are universal credit
orgnaizations, ACBA-Leasing and Agrileasing – leasing orgnaizations,
Arfin – credit union and “First Mortgage Company” – mortgage credit
orgnaization.

CREDIT ORGANIZATIONS COMPLETE FIRST HALF OF 2004 WITH 141.9 MLN DRAMS
INCOMES
YEREVAN, JULY 28. ARMINFO. Gross incomes of credit orgnaizations
totaled 799.3 mln drams on July 1, 2004, expenses 656.8 mln drams. The
press-service of the Armenian CB told ARMINFO. As a result, incomes
prevailed over expenses and credit organizations completed the first
half of 2004 with 141.9 mln drams incomes.
In the structure of gross incomes of credit orgnaizations, interest
incomes totaled 274.5 mln drams or 34.3% on July 1, 2004. The share of
noninterest incomes in the structure of gross incomes totaled 12% or
96.3 mln drams. In the structure of gross expenses, interest expenses
totaled 36.5 mln drams or 5.6% on this date, noninterest expenses
233.1 mln drams or 35.5%.
According to data of the CB, by July 1, 2004, 7 credit orgnaizations
and 1 branch operated in the territory of Armenia. At the same time,
Express-Universal, SEF-International and Gladzor are universal credit
orgnaizations, ACBA-Leasing and Agrileasing – leasing orgnaizations,
Arfin – credit union and “First Mortgage Company” – mortgage credit
orgnaization.

MODERNIZATION OF YEREVAN WATER POWER PLANT TO ALLOW TO INCREASE ITS
CAPACITY BY 2 MW
YEREVAN, JULY 28. ARMINFO. The modernization of the Yerevan Water
Power Plant, a part of the Sevan-Razdan Water Power Cascade, will
allow to increase its capacity by 2 MW, says the production manager of
the International Energy Corporation Gari Bagdassaryan.
The plant’s efficiency will be raised by 5%-6% or 72,000 KW/h. The
corporation’s director general Mels Hakopyan says that they have n
news yet whether the German bank KfW will lend money for the 20 mln
EUR project. The talks with the bank are near completion.
To remind, the International Energy Corporation was set up in May 2003
by the YeES Rossii holding for the operation of the Sevan-Razdan
Cascade consisting of 6 water power plants built in 1930-1962. The
planned capacity of the cascade is 556 MW which is only 18% o the
total electricity generating capacity of Armenia.

AZERI POLITOLOGISTS AGAINST CONCESSIONS BY AZERBAIJAN IN KARABAKH PROBLEM
YEREVAN, JULY 28. ARMINFO. The Azeri public and government will reject
any appeals by OSCE Minsk Group for concessions on the part of
Azerbaijan, says the representative of the New Azerbaijan party Aydyn
Mirzazade.
Commenting on the statement by the OSCE MG US co-chair that Azerbaijan
and Armenia should be ready to concessions Mirzazade says that Mann
knows the region better than the other two co-chairs and one should
not neglect a statement by such a man. However Mirzazade excludes the
possibility of territorial concessions on Azerbaijan’s part “otherwise
the world will witness the beginning of a negative tradition.” So
Mann’s statements should not be addressed to Azerbaijan but to
Armenia. It turns out that for MG the rights of 50,000 Armenians of
Karabakh are superior to those of 8 mln Azeris, says Mirzazade.
Politologist Eldar Namazov says that one should clarify the compromise
issue once and for all. He says that MG, international organizations
and Armenia resort to political speculations in the issue. Azerbaijan
has already offered the Karabakh Armenians a high autonomy status and
there can be no bigger compromise.
The director of the Center of Political Innovations and Technologies
Mubariz Ajgmedoglu says that Azerbaijan has already exhausted the
limit of concessions and any further ones would go against the
international law. The OSCE mediation is near total failure – there
are two ways out: mutual concessions and common positions which will
give MG the moral right to continue its mediatiion – or on the eve of
the OSCE Summit MG should raise the issue for enhancing its status and
enlarging its powers.

Azer News, Azerbaijan
July 29 2004
President dismisses another minister

President Ilham Aliyev has dismissed the National Security Minister
Namig Abbassov. The presidential order did not give any reason for
sacking Abbasov. He is the third minister to have been fired by
Azerbaijan’s 42-year-old president. Earlier this year, Aliyev sacked
the ministers for communications and foreign
affairs. Any changes in the government are closely watched in
Azerbaijan, where, according to analysts, reformers led by President
Aliyev are engaged in a behind-the-scenes power struggle with
conservatives inside the government. Abbassov is one of the biggest
figures to lose his job in Azerbaijan since Aliyev succeeded his
father, Heydar Aliyev, as president late last year.
The outgoing minister had served under Heydar Aliyev since 1994 and
was widely seen as a key figure in the ruling elite. The minister is
to be replaced by Eldar Mahmudov, a senior official from Azerbaijan’s
interior ministry. Mahmudov, born in Nakhchivan’s Sharur region in
1956, is a police colonel and has headed the Interior Ministry’s drug
enforcement department since February 2004. Prior to that he headed
the Interior Ministry’s department on combating economic crimes,
which was subsequently abolished. On the same day, the President
granted him the title of General Major. This is the first time for an
Interior Ministry official to serve as national security minister.
The appointment came as a surprise and the reasons behind it are not
clear yet. So far, National Security Ministry workers were
transferred to the Interior Ministry to strengthen this organization,
while presently the opposite is taking place. Some observers explain
this unexpected decision by the successful attempt of Armenian
national Ispir Gazarian to come to Baku from Moscow on July 23.
Gazarian’s identity was verified only after he arrived at the Baku
Airport. Several months ago a similar incident occurred, as two other
Armenians, fleeing the unbearable living conditions in their country,
came to Baku. No explanations were provided to the Azerbaijani public
as to how they succeeded in entering the country. The public
interpreted the two incidents as the weakness in the activity of
national security agencies. Regardless of the reasons for the two
incidents, they explain the President’s intention to reshuffle his
team. As for the future activity of Colonel-General Namig Abbasov, it
remains unclear at this point. The presidential order indicating the
dismissal of Abbasov from the minister’s position did not specify
whether he will still head the state commission on POWs, hostages and
missing persons. Unconfirmed reports suggest that Abbasov, while
visiting a European country, was unaware of his dismissal until the
presidential decree was issued. Foreign Minister Vilayat Guliyev was
dismissed in a similar manner. Abbasov was one of the only
Azerbaijani officials appreciated by the public. After the last
presidential election Abbasov refuted the statements by some members
of the ruling elite that secret services from some Western countries
were involved in the October 2003 developments, which ultimately
targetted a coup d’etat. Shortly before and after the presidential
election the then Minister Abbasov tried to remain impartial in the
unfolding internal political struggle. Undoubtedly, in the present
situation in Azerbaijan, any attempt of a government official to be
independent is not encouraged by the higher leadership. In short,
Abbasov had a lot of opponents both in and outside Azerbaijan. Their
number further increased after his explicit statement about the
presence of PKK units in Azerbaijan. Official Moscow and Tehran were
interested in the dismissal of Abbasov, as he was widely known for
his pro-Western position. On many occasions, he made anti-Russian and
anti-Iranian statements. However, Abbasov may be offered another
position, for instance, the post of the security council secretary to
the President. Besides, the President is also likely to fire the
current Interior Minister Ramil Usubov soon. The latter’s position is
likely to be taken by the chief of Surakhan district police
department Etibar Gazibayov. Namig Abbasov’s dismissal came as a
surprise to many analysts who predicted changes in the government
agencies. The ex-minister was one of the last officials included into
the president’s “black list”. The unexpected dismissal of Abbasov
also signals that other key figures in the government hierarchy may
also lose their job in the foreseeable future…