ROBERT KOCHARIAN: ARMENIA IS INTERESTED IN EXTENSION OF COOPERATION
WITH JAPAN

YEREVAN, OCTOBER 26, NOYAN TAPAN. On October 26, Yasuo Saito, newly
appointed Ambassador Extraordinary and Plenipotentiary of Japan to
Armenia (residence in Moscow), handed his credentials to RA President
Robert Kocharian. During the talk that followed the ceremony, RA
President said that Japan is a good example of success that can be
achieved thanks to efficient government and diligence. R.Kocharian
declared that Armenia is interested in extension of cooperation with
Japan. He highly estimated the Japanese government’s assistance to
development of Armenian economy. He especially attached importance to
programs implemented in the sphere of energy, in particular,
mentioning the agreement of taking preferential credit for the purpose
of reequipping Yerevan TPP.
According to the report submitted to Noyan Tapan from RA President’s
Press Office, during the talk the interlocutors also touched upon
international events, particularly, in the context of testing nuclear
weapons by North Korea.

CUSTOMS DUTY OF IMPORTED VODKA TO BE RAISED

YEREVAN, OCTOBER 26, NOYAN TAPAN. At the October 26 sitting, the
Armenian government approved a legislative package on making
amendments in a number of laws. Vakhtang Mirumian, Head of the State
Revenues Policy Department of the RA Ministry of Finance and Economy,
told reporters after the sitting that the amendments aim to protect
the interests of domestic producers. He said that according to the
amendments proposed to the RA Customs Code, the customs duty of vodka
imported into Armenia will be raised. Now it makes 240 drams (about
0.6 USD) for a liter. The amendment in the RA Law on State Duty
envisages lowering the state duty for granting a licence for
production of alcoholic drinks from fruits and berries – from the
current rate of 15 million drams to 50 thousand drams. The amendment
in the RA Law on Excise Tax envisages lowering the excise tax for
imported and locally produced beer by 20 drams (currently it makes 70
drams for a liter). V. Mirumian explained the last amendment by the
fact that in Armenia the excise tax of beer is higher than in other
CIS countries. In his opinion, its reduction will not result in a
decline of state revenues, because sales of beer will increase. The
above mentioned amendments will take effect from January 1, 2007.

INCOME TAX FROM SUMS PAID TO CITIZENS AGAINST REAL ESTATE ALIENATED FOR
STATE NEEDS TO BE REFUNDED

YEREVAN, OCTOBER 26, NOYAN TAPAN. At the October 26 sitting, the
Armenian government made a decision on the order of refund (in some
cases) and compensation (in other cases) of income tax taken away from
the sums paid to citizens for cancelling their right of property
during the alienation of their real estate for state needs. Davit
Hambartsumian, Head of the Budgetary Process Management Department of
the RA Ministry of Finance and Economy, told reporters after the
sitting that inflation will not be taken into account when paying back
these sums. It was noted that the total amount to be refunded makes
about 1 billion drams (about 2.5 mln USD) and will be allocated from
the state budget.

25 MILLION-DOLLAR CREDIT PROGRAM OF ARMENIAN SOCIAL INVESTMENT FUND TO
BE SUBMITTED TO WORLD BANK FOR CONSIDERATION

YEREVAN, OCTOBER 26, NOYAN TAPAN. On October 26, a 25-million credit
program of the RA Social Investment Fund will be submitted to the
World Bank Board of Directors for consideration. NT correspondent was
informed at the WB Yerevan Office that the program envisages repairs
of infrastructures and schools in several communities. To recap, in
the last ten years the RA Social Investment Fund has implemented two
credit programs of a total of 32 million USD with WB resources.

ITB BECOMES PARTICIPANT OF KfW’s STABLE HOUSE FINANCING MARKET
DEVELOPMENT PROGRAM

YEREVAN, OCTOBER 26, NOYAN TAPAN. The International Trade Bank (ITB)
(Armenia) became one of the participants of KfW Bank’s credit program
on development of stable housing financing market. According a press
release of the bank, the KfW program is expected to be an important
stimulus for development of this sector of the Armenian financial
market and to cause local banks to improve their crediting conditions
by lowering interest rates and extending credit maturity terms. ITB
also intends to provide mortgage credits from its own resources. The
bank developed its program of mortgage crediting and will soon
announce its entrance into this market. It will provide credits for a
period of 10 years and over. The amount of a credit at the initial
stage will not exceed 12 million drams (about 30 thousand USD). It is
envisaged to launch KfW’s credit program on development of stable
house financing market in Armenia in November-December 2006. ITB CJSC
was founded in 1992 on the basis of Menatep-Yerevan Bank CJSC – the
Yerevan branch of Menatep Bank (Russia).
In April 2000, the bank’s shares were acquired by foreign
organizations which later joined Makarios (MG) Holding GMBH company,
and the bank was renamed “International Trade Bank” (ITB). In 2005,
Makarious (MG) Holdings GMBH acquired 99.91% of ITB shares. As of June
30, 2006, the overall assets of the bank made 5.1 bln drams, its
credit portfolio – 1.6 bln drams, overall capital – 2.98 bln drams.
The bank has 4 branches. Makarious (MG) Holdings GMBH unifies about 60
companies registered in Austria, Ireland, Switzerland, Cyprus, several
CIS countries. Makarious Group’s interest in Armenia is not limited to
the banking sector. The group invested 22.5 mln dollars in
construction of North Avenue in Yerevan.

INTERNATIONAL PERFORMANCES OF ARMENIAN RIFLEMEN HIGHLY ESTIMATED

YEREVAN, OCTOBER 26, NOYAN TAPAN. On October 26, Seyran Nikoghosian,
principal coach of Armenian national team of bullet shooting,
presented report at the Armenian State Sport Committee. Highly
estimating the international performances of Armenian riflemen, he
also mentioned that the first and for the present the only Armenian
sportsman who gained the right to take part in the Beijing-2008
Olympic Games is Europe Vice-Champion Norayr Bakhtamian. At the same
time, the report drew attention to the fact that training conditions
of riflemen are unsatisfactory in Armenia, there is lack of arms and
bullets. It was decided to carry out some partial repairs at some
shooting-grounds before putting into exploitation the new shooting
complex corresponding to international standards in 2007 in Yerevan.
From: Emil Lazarian | Ararat NewsPress

JAPANESE AMBASSADOR TO SUPPORT DEVELOPMENT OF ARMENIAN-JAPANESE
INTERPARLIAMENTARY RELATIONS

YEREVAN, OCTOBER 26, NOYAN TAPAN. Both the Japanese and the Armenians
have many communities – ancient-old cultural rich heritage, beautiful
country and lack of natural resources, when the only natural resource
remains the human one, with skilful use of which it is possible to
achieve much success in the modern world. Newly aoppinted Ambassador
of Japan to Armenia, Yasuo Saito, said this at the October 26 meeting
with RA NA Speaker Tigran Torosian. The Ambassador said that a
parliamentary friendship group with Armenia was created at the
Japanese parliament and one of his tasks will also be to develop
interparliamentary relations. In his turn, T.Torosian expressed
gratitude for the assistance provided to Armenia by the Japanese
government. He also expressed the hope that the Ambassador will
contribute to development of interstate and interparliamentary
relations. In response, Ambassador Saito said that Japan is in first
place in the respect of economic assistance programs to another
countries. Being in Armenia for two days he had an oppportunity to be
convinced in the efficiency of joint programs and will do everything
possible to continue these programs. Attaching importance to the
elections for democratic development and country’s progress, the
Ambassador also mentioned the importance of reforms, which gave
Armenia the possibility of economic development.

KAREN KARAPETIAN: TRANSFER OF IRAN-ARMENIA GAS PIPELINE’S ARMENIAN
SECTION TO ARMRUSGAZPROM IS LOGICAL

YEREVAN, OCTOBER 26, NOYAN TAPAN. The ArmRusgazprom company has
already made a proposal to the Armenian government to transfer the
40-km Meghri-Kajaran section of the Iran-Armenia gas pipeline to the
company. Karen Karapetian, Chairman of ArmRusgazprom Board and General
Executive Director of the company, told this to reporters on October
26. According to him, this deal is logical because the gas pipeline
connects the Iranian gas transportation system with that of
ArmRusgazprom. K. Karapetian said that there are various forms of
transferring this section of the gas pipeline, including “the Armenian
side makes a capital investment and increases its divident.”

OLD GEGHANUSH TAILING PIT BEING RESTORED

YEREVAN, OCTOBER 26, NOYAN TAPAN. The company Dino Gold Mining is
restoring the old Geghanush tailing pit to dump its waste there. Vahe
Vardanian, head of the company’s nature protection unit, told this to
reporters during a media tour organized under the project “Promotion
of Ecological Journalism in Armenian Regions for Monitoring of
Environmental Protection Problems of the Corridor of the Eastern
Caucasus Minor.” The project is being implemented by the Ecolur NGO
with the financial support of the Caucasian Program of the Critical
Ecosystem Partnership Fund and the World Wildlife Fund (CEPF/WWF).
V. Vardanian underlined that the tailing pit is being constructed
with the use of modern technologies, and will have a closed cycle. The
new construction will occupy not only the area of the old tailing pit
but will also raise its level to the height of 50 meters. It means the
nearby mountain slopes and land plots of inhabitants of the village of
Geghanush will be covered by liquid waste of the enterprise.
According to V. Vardanian, it is envisaged to pay compensation to
these people.
However, the head of the village community Grigor Safarian said that
the opinions of village inhabitants were not taken into account during
the ecological expert examination. While the new tailing pit is under
construction, the waste is dumpted into the old one. Levon Petrosian,
head of the territorial state nature protection inspection, explained
to reporters that although the tailing pit is a temporary one, it
performs its functions. Yet, according to local journalists, the waste
is poured into the Vokhchi River without being treated.

EUROPEAN UNION POSITIVELY ASSESSES PROCESS OF REFORMS IN ARMENIA

BRUSSELS, OCTOBER 26, NOYAN TAPAN. The 7th sitting of the Armenia-EU
Cooperation Committee took place in Brussels on October 25. The
Armenian delegation headed by the RA Minister of Trade and Economic
Development Karen Chshmaritian was composed of the deputy ministers of
foreign affairs, justice, finance and economy, and energy, and the
Head of the RA Mission in the EU Vigen Chitechian. The European
delegation was headed H. Mingareli, Director of the Directorship
General for Foreign Relations. According to the RA MFA Press and
Information Department, issues related to the European Neighborhood
Policy were discussed at the sitting. The Armenian officials
representing various sectors spoke about the reforms implemented and
to be implemented in these sectors. The EU positively assessed the
process of reforms in Armenia and attached special importance to the
signing of the Action Plan under the European Neighborhood Policy
Program on November 14 and to the further cooperation within the
framework of the program. K. Chshmaritian on October 26 met with David
O’Sullivan, Director of the European Commission’s Directorship General
of Trade. The sides discussed issues related to granting Armenia
status of a free economic zone and market economy, problems of
EU-Armenia trade regime and issues concering the development of
bilateral trade.