DEPUTY HEAD OF DEPARTMENT FOR ORGANIZED CRIMINALITY-FIGHT OF RA POLICE OFFERS TO TAKE ALL NIGHT CLUBS OF YEREVAN OUT OF CITY
Yerevan, June 14. ArmInfo. Ninety-nine women and young girls are
made to administrative account for prostitution and are registered
in Yerevan from the beginning of 2006, Karen Babakekhyan, the deputy
Head of the Department for Organized Criminality-Fight of RA Police,
informed at today’s press-conference.
According to him, 21% of them has no permanent source of income.
Sixty-five women have different venereal diseases and only one woman
with a syphilis. Babakekhyan stated about the necessity of licensing
of the night club’s dancers. In his opinion, such objects are to be
taken out of city. At the same time, he is against of opening the
houses of prostitution.

CEREMONIAL LEAVE OF FIRST YEREVAN-BATUMI TRAIN SCHEDULED FOR JUNE 17
Yerevan, June 15. ArmInfo. The first Yerevan-Batumi-Yerevan trip of
passenger train will ceremonially open on June 17, on Saturday. Head
of the Armenian Railway Department for Transportation, Hakop Khrimyan
told ArmInfo.
He said the first trip was scheduled for June 15, however, it was
postponed at the request of the Georgian prime minister who expressed
desire to participate in the opening ceremony. Armenian Minister
of Transport and Communications Andranik Manukyan and the heads of
Armenian and Georgian railways will participate in the ceremony. A.
Khrimyan said the train will leave on uncountable days of the week.
To note, the railway communication was opened for summer rest of
Armenian tourists in the Black Sea coast in Georgia. The train will
leave at 9:10 PM local time and arrive in Batumi at 1:40 AM. One ticket
in double compartment costs 18,703 drams, the ticket in four-place
compartment – 9,297 drams. The tickets on the return way from Batumi
will cost tourists 21,256 drams and 10,542 drams, respectively in
terms of lari.

PATRIARCH OF CONSTANTINOPLE ALREADY DENIED STATEMENTS, PROMULGATED DAY BEFORE, AND SO ECHMIADZIN DOES NOT CONSIDER THEM NECESSARY TO COMMENT
Yerevan, June 15. ArmInfo. The Patriarch of Constantinople has
already denied the statements, promulgated the day before, that’s
why Echmiadzin does not consider them necessary to comment. Thus,
by ArmInfo correspondent request, the Head of Echmiadzin Chancellery
press office, a priest Vahram Melikyan commented today the information,
promulgated the day before in the Turkish press, where it is said,
with reference to some report of Turkish Special Services, that
the “Armenian community of Istanbul and the Armenian Patriarch of
Constantinople expresses an extreme anxiety in view of the coming
visit of the Catholicos of All Armenians Garegin the Second to
Turkey”. The priest Vahram Melikyan informed, the Catholicos of
All Armenians Garegin the Second will leave for Istanbul June 20,
by invitation of the Armenian Patriarch of Constantinople Mesrop
Mutafyan, to convey the Patriarch blessing to the Armenian community
of Istanbul. During his visit to Turkey from June 20 to 23, the High
Patriarch intends to make a brother visit to the Ecumenical Patriarch
Bartholomew the First. “As for some statements, heard in view of the
coming visit, the Armenian Patriarch of Istanbul has already denied
the statements, published the day before in the Turkish press, as
if made by the representatives of the Armenian community of Istanbul
and the Patriarch of Constantinople, that’s why Echmiadzin does not
consider it necessary to respond to them”, Melikyan said.

“CASCADE CREDIT” TO START IMPLEMENTING PROGRAM OF RENEWABLE ENERGY PROJECT CREDITING
Yerevan, June 15. ArmInfo. “Cascade Credit” crediting institution
will start implementing a program on crediting of renewable energy
projects starting from July 2006, “Cascade Credit” Executive Director
Garegin Gevorgyan said at a press conference, Thursday.
He said the program costs $15 million, including $7 million allocated
by EBRD, $5 million by WB. The remaining $3 million are invested by
Gafesjian Family, the owner of “Cascade Credit.” In addition, World
Environment Protection Program will provide a $3 million grant as a
technical assistance to the program. G. Gevorgyan said the credits
will be provided mainly for construction of small 10 megawatt capacity
HPPs for 8 years and a 2 year grace period. He said the credit will
not exceed one million dollars and 70% of the total expenses. The
annual interest rate is 8-9% on the six-month rate LIBOR+. Given
the urgency of the projects in Armenia, he said “Cascade Credit”
cooperates with authors of 25 of 48 projects submitted recently.

HOUSE FINANCIAL SERVICES COMMITTEE ADOPTS AMENDMENT TO BLOCK U.S. SUBSIDY FOR ARMENIA RAILROAD BYPASS
Yerevan, June 15. ArmInfo. The Armenian National Committee of America
(ANCA) [Ho.He. Dashnaktsytyan Washington-ee Hai Tahd-ee Krasenyag]
today welcomed the vote by a powerful Congressional panel to block
U.S. taxpayer funding for an unnecessary and costly proposed railroad
between Turkey and Georgia that would, if built, circumvent Armenia
and, in the process, undermine the economic viability of the existing
Caucasus railroad route through Armenia.
With a unanimous voice vote earlier today, the House Financial
Services Committee adopted the amendment offered by panel member
Joe Crowley (D-NY). The measure prohibits the Export-Import Bank from
providing any assistance “to develop or promote any rail connections or
railway-related connections that traverse or connect Baku, Azerbaijan;
Tbilisi, Georgia; and Kars, Turkey, and that specifically exclude
cities in Armenia.”
“With this amendment, we are sending a message to the governments of
Turkey and Azerbaijan that continually excluding Armenia in regional
projects fosters instability,” said Congressman Crowley. “Bypassing
Armenia is just another attempt to further suffocate this republic,
which has made great strides in democratic and economic reforms
notwithstanding its neighbors’ hostility. If the Caucasus region
is to move forward, we must ensure that all countries move forward
together at the same time.”

LLOYD’S GUEST OF “LONDON-YEREVAN” INSURANCE COMPANY
Karina Melikyan, ArmInfo, 14 June 2006
Lloyd’s Heritage Managing Agency Ltd. Syndicate 1200, specializing
in property insurance, is seriously interested in Armenia. The
syndicate’s representative has got an offer from London Gate
Group, 100% founder of “London-Yerevan” insurance Company, to pay a
fact-finding visit to Armenia. Few days ago, London representatives
arrived in Armenia and visited the Central Bank, the British Embassy
and met with the directors of HSBC Bank Armenia quite in a short
period of time. Representative of Heritage Managing Agency Ltd.
Syndicate 1200 Darren Warkcup and Chairman of London Gate Group Brian
Salmanpour shared their plans and the preliminary assessments of
Armenia’s insurance market with ArmInfo’s correspondent. In her turn,
“London-Yerevan” insurance Company director Sona Dalalyan presented
the achievements of the company.
How would you assess the activity of “London-Yerevan” insurance
company?
Brian Salmanpour: As the head of London Gate Group, I’ll say that
our broker KAY International has been reinsuring London-Yerevan’s
policies in the market of Lloyd’s for several years already. And I
think this partnership is quite successful.
Darren Warkcup: In my turn, I’d underline that London-Yerevan’s
high indices, quick growth rates and quite serious development plans
prove that the company is making serious achievements in Armenia’s
insurance market. In this light, Syndicate 1200 has decided to give
London-Yerevan a unique chance to asses risks and to sign documents
“with Lloyd’s pen.”
Lloyd’s corporation is known to comprise several specialized
Syndicates. It is interesting why exactly the representative of
Syndicate 1200 specializing in property insurance arrived in Armenia
to get first hand view of the country’s insurance market?
Darren Warkcup: In the last years Armenia has shown growing activity
in construction and I wanted to see this in the place. I am especially
glad to know that Armenia is beginning to assess risks in construction
and I want to see what risks they deal with in Armenia and in what
amounts. It was exactly because of London-Yerevan’s growing activity
in risk reinsurance abroad that we decided to visit Armenia. I am
the first property underwriter representative to visit Armenia so
far and I can say that I am very much impressed by London-Yerevan’s
work, especially in property insurance, a sphere I supervise at
Lloyd’s. So, I am ready to do my best to help the Armenian company
to get competitive.
What is your conclusion, of course, if you could arrive at such during
your short-term visit to Armenia?
Brian Salmanpour: Armenia’s insurance market is developing very slowly
and in order to step up this process it is necessary to regulate the
market and the activities of insurance companies.
Sona Dalalyan: As a direct participants of the insurance market,
I’d like to note that today only 8-10 companies have life insurance
license. Having such a license, London-Yerevan is not very much active
in the sphere as it knows that the CB is planning legislative changes
to make insurance companies choose either they insure only life
or only other spheres. So, it is a question yet how many companies
will agree to insure only life as this type of insurance is not very
much popular in Armenia yet. Today insuring life in Armenia are only
companies with foreign capital or bank-related entities wishing to
insure their borrowers.
Regarding the supervisory body, what is the opinion “abroad” on the
role of the Central Bank as the megaregulator of the financial market,
including, as a body controlling over the activity of insurance
companies?
Darren Warkcup: Vache Gabrielyan, a member of the CB Council, informed
us of CB’s supervisory mechanisms. It is important that the powers
of megaregulator were laid on the Central Bank as the chief banker
tries to transfer the insurance market to an open field i.e.
to secure transparency of this business for potential clients. As
regards the CB’s aspiration to bring the law on insurance in the
line with international standards, it will help the market develop
and attract more foreign companies to Armenia. This, in its turn,
will develop competition and create more attractive conditions for
clients. In fact, only reliable insurance companies will maintain
their positions in the market.
And what about the compulsory insurance the introduction of which in
Armenia is not far away?
Brian Salmanpour: I think the compulsory insurance plays an important
role both for the economy, on the whole, and for development of
insurance market, in particular. It is, first of all, aimed at
protecting consumers’ interests as it will allow the market becoming
well-organized, and the public – more aware of their demands.
It is not a secret that there are no insurance companies especially
founded to protect the interests of large financial and industrial
groups in Armenia. Is it normal?
Darren Warkcup: It is very dangerous and may lead to double economy.
Quite recently Fitch rating agency gave Armenia a sovereign credit
rating “BB-,” another rating is expected from another large foreign
agency within a month. It is interesting, if any steps are taken to
give ratings to insurance companies?
Sona Dalalyan: Armenia’s Central Bank has already signed a resolution
on compulsory rating of foreign insurance companies reinsuring
insurance policies of Armenian insurance companies, and submitted
it to the RA Justice Ministry for registration. This document, which
will come into effect in six months, provides for 5 leading foreign
rating agencies: Standard&Poor’s (U.S.) – “BBB”, Moody’s (U.S.) –
“Baa2”, A.M. Best (U.S.) – “B+”, Duff and Phelps – “BBB”, Weiss –
“B” è Fitch Ratings (U.S.) – “BBB”.As you see, the minimal required
rank is “”. One of Russian leading rating agencies was included in
the initial list, which, however, is not indicated in the final list
because of its minimal rating of “ÂÂ-” rank.
In the course of the visit, you met also with HSBC Bank Armenia
Executive Director Anthony Turner. What was the purpose of the
meeting? Do you negotiate or it was just a meeting of partners?
Brian Salmanpour: We had a desire to meet with one of the oldest and
most reliable clients of “London-Yerevan,” HSBC Bank Armenia. We
discussed the details of partnership and the prospects of our
cooperation with the leadership of that bank.
Sona Dalalyan: Besides HSBC Bank Armenia, “London-Yerevan” cooperates
also with five leading banks in the country, which, apply to the
company mainly for insurance of bank risks, property and cars, for
medical insurance of employees and for insurance against careless
employees. As regards insurance of financial risks, “London-Yerevan”
is not engaged in this type of insurance.
As our talk touches upon the activity of “London-Yerevan” anyway,
would you present its achievements and plans in figures? What is the
company’s share in different types of insurance, insurance premiums
etc??
Sona Dalalyan: In 2005, the company’s share in total insurance
premiums in the market was 20% as against 16.9% in 2004. As to this
indicator, “London-Yerevan” is in the lead in the Ranking of the
leading insurance companies in Armenia 2005 prepared by the Agency of
Rating Marketing Information (ArmInfo). As to the payments of insurance
indemnity, the company is the second. The share of the company’s life
insurance premiums in the market made up 56%, however, the share of
this insurance type in the company’s insurance portfolio was only
1%. For instance, at European companies, the share of life insurance
is almost 40%. In 2005, “London-Yerevan” secured an impressive growth
of automobile insurance – 115%. Then goes property insurance – 56%,
cargo transportation insurance – 44%, accident insurance – 40%, and
responsibility insurance – 7.5%. In total, the company secured 17%
growth on all the insurance types in 2005.
Regarding plans, we intend to at least double the growth of property
insurance and to increase insurance premiums by 25%.
Brian Salmanpour: All the underwriters keep supporting “London-Yerevan”
in reinsurance of property, life, accident and cargo transportation
insurance risks it undertook.
In conclusion, it would be useful to know the opinion of authoritative
foreign insurers concerning the influence of stable economic growth
in Armenia on development of the country’s insurance market.
Darren Warkcup: The stable economic growth in Armenia will allow
insurance companies extending their activity, specifically,
capitalization is in question. Due to it, new services will be
provided to clients, the competition will be increased. In fact,
only specialized stable companies will remain in the market, others
will amalgamate. Of course, the share of reinsurance of Armenian
companies in the Lloyd’s market is so insignificant that it is
not worth mentioning. The annual turnover of Lloyd’s Corporation
considerably exceeds the budget of Armenia. Nevertheless, the
corporation’s underwriter noticed Armenia and other CIS countries
which were avoided by other foreign reinsurers.
–Boundary_(ID_7FfH8sczrOAbkStAuQmM5g )–

ARMENIAN PRESIDENT TO DEPART FOR MINSK TO PARTICIPATE IN CSTO SUMMIT
PanARMENIAN.Net
16.06.2006 12:41 GMT+04:00
/PanARMENIAN.Net/ Armenian President Robert Kocharian will take part in
the summit of the Collective Security Treaty Organization member states
to be held in Minsk June 23, RA leader’s Spokesman Victor Soghomonyan
said. In his words, the schedule of bilateral meetings is still
being discussed. At that Victor Soghomonyan remarked that the agenda
of the summit will be rather rich. The participants are expected to
consider a scope of issues referring to security in the CSTO member
states. Secretary of the Security Council at the RA President,
Defense Minister Serge Sargsyan will also serve on the delegation.
The plenary session of the SCTO summit will open in a limited
composition. Then the Presidents will hold the sitting with
participation of the Foreign Ministers and Secretaries of Security
Councils. The top officials will discuss the priorities of the
organization for the coming year, the place and role of the SCTO
within the architecture of international security, prospects of
cooperation with other organizations engaged in the international
security, reported Novosti-Armenia.

BAKU STATEMENTS ON ARSONS IN KARABAKH AIMED AT AGGRAVATION OF SITUATION IN CONFLICT REGION
PanARMENIAN.Net
16.06.2006 12:48 GMT+04:00
/PanARMENIAN.Net/ A propagandistic hysteria as if arsons of nearborder
settlements on the territories controlled by the Nagorno Karabakh
Republic has an objective to tense the situation in the conflict
region and aggravate mutual distrust between the parties, NKR Deputy
Foreign Minister Masis Mailyan stated, reported the NKR FMA press
office. In his words, simultaneously the Azerbaijani authorities
try to distract the attention of the international community from
the demolition the Armenian historic and cultural heritage on the
territories of present-day Azerbaijan, what is testified, particularly,
by destruction of Armenian khachkars in Djulfa (Nakhichevan).
Meanwhile, Mailyan added, as it was repeatedly mentioned, in summer,
in droughty weather, ignition of dry grass takes place in the low part
of Karabakh and its extinguishing on the territories near Azerbaijan
is hampered because of permanent firing from the Azerbaijani side
and impossibility of ensuring security of fire brigades. Ignition
of dry grass is caused not only by the hot weather but also firing
of the territories controlled by the NKR by tracer bullets from the
Azerbaijani positions, as well as ignition of grass by Azerbaijani
servicemen on neutral line between the borders of the NKR and
Azerbaijan, the NKR Deputy FM said.

MATTHEW BRYZA TO ASSUME DUTIES OF OSCE MG CO-CHAIR JUNE 22
PanARMENIAN.Net
16.06.2006 13:22 GMT+04:00
/PanARMENIAN.Net/ New U.S. Co-chair of the OSCE Minsk Group Matthew
J. Bryza will formally assume the duties in Vienna June 22, Jonathan
Henick, Public Affairs Officer of the U.S. Embassy in Azerbaijan
stated. In his words, there no information on Mr Bryza’s visit to the
Nagorno Karabakh conflict region as the OSCE Minsk Group Co-chair yet,
reported Trend.
To remind, yesterday Armenian Foreign Minister Vartan Oskanian informed
that Matthew Bryza will replace Steven Mann at the post of the Co-chair
and after confirmation in Vienna he will fully engage in the Nagorno
Karabakh conflict settlement process. “To all appearance he will
pay a visit to the region to get familiarized with the situation and
parties to conflict,’ the RA FM said.

GEORGIA NOT AGAINST ESTABLISHMENT OF ARMENIAN CONSULATE GENERAL IN BATUMI
PanARMENIAN.Net
16.06.2006 13:43 GMT+04:00
/PanARMENIAN.Net/ Georgia is not against establishment of Armenian
Consulate General in Batumi, Georgian Ambassador to Armenia Revaz
Gachechiladze told a PanARMENIAN.Net reporter. In his words, in
this case establishment of Georgian consulate in Armenia is not
necessary. “There are cases in diplomatic practice when consulates are
opened one-sidedly. Turkish Consulate General has been functioning for
a long time in Georgia. Later Georgian consulates were established in
Istanbul and Trabzon. Georgia is an open country and we always meet the
wishes of other states, especially Armenia,” Revaz Gachechiladze said.