EBRD TO KEEP ON CONTRIBUTING TO DEVELOPMENT OF ARMENIA’S BANKING SYSTEM

Yerevan, December 12. ArmInfo. The European Bank for Reconstruction
and Development (EBRD) will keep on contributing to the development
of Armenia’s banking system, EBRD’s regional economist, Alex Kirimich,
told the journalists.

According to him, improvement of the crediting environment is observed
in Armenia since the end, 2005 until now In view of the upgrading of
the monitoring standards, carried out by the RA CB.

According to him, there are still unsolved questions in the area
of corporative management and transparency of ownership. A. Kirimich
noted that, despite the private sector crediting level increase in 2005
by 33% in a nominal value, the level of the financing accessibility
in the country remains one of the weakest in the region, whish are
indicated by a ratio of credits in GDP at the level of 8,2%.

To note, the EBRD participates in the capital of Armeconombank (2,5%),
with which it carries out joint investment programs for financing of
a small and medium business, for trade financing and co-financing
of a medium and large business. The Eurobank is also working with
the ACBA-Credit Agricole per the last program, with which it carries
out a joint program for crediting of a small and medium business and
for giving the bills of credits and banking guarantees. The EBRD,
together with the Anelik Bank, implements a program for crediting of a
small and medium business and for the trade financing. With INECOBANK,
the EBRD carries out the programs for crediting of a small and medium
business and for granting the bills of credits and banking guarantees.

EU REFUSES TO RECOGNISE NAGORNY KARABAKH VOTE

Agence France Presse — English
December 11, 2006 Monday 1:54 PM GMT

The European Union on Monday said it did not recognise a constitutional
referendum held in the breakaway region of Nagorny Karabakh in the
former Soviet republic of Azerbaijan.

In a statement released by the Finnish presidency of the bloc, the
EU said it "recognises neither the "referendum" nor its outcome."

The EU also repeated its position that it did not recognise the
independence of the Nagorny Karabakh enclave.

The region of Azerbaijan is populated by 140,000 people, a majority
of whom are Armenian.

"The EU considers that conducting such a "referendum", thus
pre-empting the outcome of the ongoing negotiations, did not
contribute to constructive efforts at peaceful conflict resolution,"
the statement said.

"It calls on all parties to the conflict to intensify their efforts
to find a negotiated solution to the conflict," the EU added.

Some 98.6 percent of votes cast in Sunday’s poll approved a
constitution declaring Nagorny Karabakh an independent state.

The enclave first declared itself independent in 1991. Its break from
Azerbaijan precipitated a full-blown war between fellow former Soviet
republics Armenia and Azerbaijan, claiming some 25,000 lives before
ending with a ceasefire in 1994.

Years of negotiations have failed to resolve the dispute between
Azerbaijan and the Nagorny Karabakh separatists, who are closely
backed by Armenia.

Efforts to reach a permanent resolution to the conflict are currently
headed by the Minsk Group under the auspices of the Organisation for
Security and Cooperation in Europe (OSCE).

From: Emil Lazarian | Ararat NewsPress

EBRD INTENDS TO DOUBLE CREDIT PORTFOLIO IN ARMENIA TILL 2008

Yerevan, December 12. ArmInfo. The European Bank for Reconstruction and
Development (EBRD) intends to double its credit portfolio till 2008
to 120 mln EURO, the Head of EBRD Yerevan Office, Michael Weinstein,
said at today’s press- conference.

According to him, the Bank intends to increase the credit portfolio
mainly at the expense of a small and medium business crediting. In
2007-2008, the EBRD also intends to implement social projects in
energy, mainly in a renewable energy, in agriculture, realty, tourism
and health, he said. According to M. Weinstein, the credit portfolio
of the Bank, as of today, makes up 60 mln EURO.

To note, Armenia has been cooperating with EBRD since 1992. As of
the end, 2006, the total amount of credits, granted to the Republic,
makes up 102 mln EURO without taking in to account the credit for
reconstruction of the "Zvartnots" airport ($20 mln). Credits to the
sum of 117 mln EURO have been signed.

From: Emil Lazarian | Ararat NewsPress

HEAD OF RA NSS: NSS TURNED OUT TO BE THE ONLY REASONABLY ACTING STRUCTURE OCTOBER 27, 1999

Yerevan, December 12. ArmInfo. The National Security Service of
Armenia turned out to be the only reasonably acting structure on
October 27, 1999, which tried to suppress the further possible steps
of terrorists, the Head of the National Security Service of Armenia
under RA Government, Lieutenant General Gorik Hakopyan, said in an
interview to "Iravunk" newspaper.

He reminded that some representatives of the country’s law machinery
structures "had simply deserted that tragic day", while the NSS had
undertaken actions, accepted in the world under such circumstances.

"It was necessary to undertake something, therefore, I had sent the
journalist Tigran Nazaryan to negotiate with the hear of terrorists,
Nairi Hunanyan", G. Hakopyan said.

According to him, a definite practice exists, used by special services
in all the countries of the world. This is a question of trying to
put a psychological pressure on the criminal. It became clear that
there are people able to influence Nairi Hunanyan. Tigran Nazaryan
turned out to be such a man. It was difficult to persuade Nazaryan to
assume this mission. However, he entered the session hall and tried
to calm the head of terrorists. Such methods are used in Russia and
in other countries (if remember the drama in Moscow at the "Nord-Ost"
performance, Beslan). During any terrorist act, the special services
try to influence the mind of people and enable a dialogue, to stop
the extremism and come to an agreement without bloodshed.

From: Emil Lazarian | Ararat NewsPress

NAGORNY KARABAKH TO GET A CONSTITUTION
Samvel Martirosyan

RusData Dialine – Russian Press Digest
December 12, 2006 Tuesday

The breakaway Nagorny Karabakh region overwhelmingly approved a
new pro-independence constitution, returns from a Sunday referendum
showed. Azerbaijan shrugged off the vote as a "farce," and the European
Union said it would not recognize it. The region broke away from
Azerbaijan in the early 1990’s and has no international recognition.

But Karabakh’s leader described the plebiscite, seen as a signal of
the region’s commitment to independence, as a factor which could help
revive languishing talks on its future status. Karabakh wants to be
part of the talks underway between Armenia and Azerbaijan over the
status of the region.

According to official figures released Monday by the Karabakh elections
commission, 98.6 percent of voters approved the constitution, which
describes Karabakh as a sovereign state.

AZERBAIJAN CALLS BREAKAWAY REGION’S INDEPENDENCE VOTE A ‘FARCE’

Agence France Presse — English
December 11, 2006 Monday 9:11 PM GMT

Azerbaijan on Monday described the constitutional referendum held in
its breakaway region of Nagorny Karabakh as a "farce."

Some 98.6 percent of votes cast in Sunday’s poll approved a
constitution declaring the Armenian-backed Nagorny Karabakh an
independent state.

"In the end it will have negative rather than positive consequences.

Such a referendum does not contribute to a peaceful resolution,"
Azerbaijan’s Foreign Minister Elmar Mammadyarov told journalists
on Monday.

"The passing of a legal resolution would need the participation of
absolutely all citizens, the citizens of Azerbaijan. Without their
participation it is frivolous," he said.

Nagorny Karabakh first declared itself independent in 1991,
precipitating a full-blown war between former fellow Soviet republics
Armenia and Azerbaijan, which claimed some 25,000 lives before ending
with a ceasefire in 1994.

Years of negotiations have failed to resolve the dispute between
Azerbaijan and the Armenian-backed Nagorny Karabakh separatists.

Mammadyarov suggested that the referendum indicated that Armenia was
not negotiating in good faith.

"On the one hand they say ‘yes’ we agree that negotiations be brought
forward, and on the other hand they hold a constitutional referendum.

It’s a joke, a farce, nobody will accept it," he said.

The chairman of the Organization for Security and Cooperation in
Europe, a key player in the peace negotiations, on Monday called the
referendum "counter-productive."

The European Union said it "recognizes neither the ‘referendum’
nor its outcome."

Armenian Foreign Minister Vardan Oskanyan said the vote would not
impede the peace process.

"The referendum will not hinder the continuation of the negotiating
process, as the basis for the peaceful resolution lies in the right
of the people of Nagorny Karabakh to self-determination," he told
Russia’s RIA Novosti news agency ahead of the vote.

From: Emil Lazarian | Ararat NewsPress

RUSSIA ACCUSES GEORGIA OF BLOCKING AIR SPACE

Agence France Presse — English
December 11, 2006 Monday 8:50 PM GMT

Russia accused its rival Georgia on Monday of breaching a deal by
blocking its military planes from landing at a Russian base in Armenia,
the latest in a spate of diplomatic clashes between the neighbours.

"Despite an accord reached between Russia and Georgia on the transit
of military cargo planes, the refusal by the Georgians to grant
authorisation to Russian air force planes to use the Georgian air
space continues," Russian air force spokesman Alexander Drobyshevski
was quoted as saying by news agencies.

Russian planes must pass through Georgian air space in order to supply
the airbase in Russia’s ally Armenia, another former Soviet state.

"Over the past six months, we have asked 40 times for authorisation
to use Georgian air space, but have received this authorisation for
only 12 flights," Drobyshevski added.

Diplomatic relations between Russia and its southern neighbour have
declined since Georgia’s pro-Western President Mikhail Saakashvili
came to power in 2003, and nose-dived in September when Georgia
expelled four Russian officers whom it accused of spying.

Moscow reacted by suspending air and sea links with Georgia and closing
its land borders with the country, as well as rounding up and expelling
hundreds of Georgians it accused of being in Russia illegally.

NAGORNY KARABAKH PASSES SEPARATIST CONSTITUTION

Agence France Presse — English
December 11, 2006 Monday 10:24 AM GMT

Azerbaijan’s breakaway region of Nagorny Karabakh overwhelmingly
approved a constitution declaring itself an independent state,
according to official results announced Monday.

More than 98 percent of participating voters in the unrecognised
republic voted "yes" in Sunday’s poll, preliminary results from the
central electoral commission showed.

"Based on these preliminary results, we can already say that the
constitution has been adopted," Sergei Nasibian, the electoral
commission chairman.

The government of oil-rich Azerbaijan has condemned the vote, which
came exactly 15 years after the province’s ethnic-Armenian majority
voted to separate from Azerbaijan, preceding a war that killed about
25,000 people and drove about a million people, mostly Azeris, from
their homes.

Nasibian said 87.2 of the 90,000 registered voters took part.

Although a ceasefire took effect in 1994, years of negotiations have
failed to resolve the dispute between Azerbaijan and the Nagorny
Karabakh separatists, who are closely backed by Armenia.

TURKEY NOT TO RECOGNIZE AZERI KARABAKH "REFERENDUM"

Anatolia News Agency, Turkey
Dec 11 2006

Ankara, 11 December: Turkey has announced that it will not recognize
the results of the referendum held yesterday in Upper Karabakh,
a province of Azerbaijan under Armenian occupation.

A statement by Turkish MFA [Ministry of Foreign Affairs] indicated that
"international laws were ignored" in yesterday’s referendum held for
adoption of the "Upper Karabakh Republic’s Constitution".

"At the end of the referendum, the Upper Karabakh region of Azerbaijan
was defined as the ‘Upper Karabakh Republic’ and as a ‘sovereign,
democratic, legitimate, social state’," the statement noted.

The statement also pointed out that Turkey considers this vote as
"a proof of the Armenian occupation of the Azerbaijani territory
which is against international laws."

In the statement, the MFA condemns this act which is a new violation
of Azerbaijan’s political unity, sovereignty and territorial integrity
by Armenia.

Noting that more than one million Azerbaijani have become refugees
in their own country due to the invasion, the statement said, "it is
obvious that this move to hold a ‘constitutional referendum’ in the
Upper Karabakh region is one that ignores efforts to find a peaceful
solution (to the problem)."

The Turkish MFA also called on the international community to condemn,
and not to recognize the results of the so-called referendum.

OFFICIAL DOUBTS QUAKE RESISTANCE OF ARMENIAN CAPITAL’S BUILDINGS

Second TV Channel, Armenia
Dec 7 2006

The seismic risk is currently higher in Yerevan [than in the area
of Gyumri, formerly Leninakan, where a devastating earthquake struck
in 1988].

The Armenian Seismic National Defence department head, Alvaro Antonyan,
has said that Armenia is one of several post-soviet countries with
a National Seismic Special Construction Code. He noted that not all
buildings meet this code. The criteria are adhered to in the [1988]
earthquake zone because of international organizations’ funding
and supervision. He added that Zvartnots International airport’s
new building has also been constructed according to the national
seismic norms.

He said that his organization is responsible for seismic risk
supervision, but it does not have any influence on adherence to it.

He said that in countries where a seismic risk exists, the community
needs to prepare, as otherwise more than 30 per cent may die in
a quake.

He said that seismic activity in the region has been high during
recent months. He also said that the equipment used by his department
can predict major tremors two months in advance. He said that
decision-makers are strict when an earthquake happens, but after
some time they forget about it. He said. "We have to prepare for an
earthquake to happen at any time, even if it’s 10, 15 or 20 years
from now".