HIGH PROFITABILITY AND 100% CREDIT REFUNDABILITY TO URGE THE ARMENIAN
BANKS TO AGGRESSIVE CREDIT POLICY
Yerevan, July 31. ArmInfo. High profitability and 100% credit
refundability to urge the Armenian banks to aggressive credit policy
and to promoting the economic progress in Armenia, said on the 9-th
meeting of the Armenian Bankers’ Union Tigran Sarkisian, head of
the Central Bank. According to the banker, Moody’s Ba2 rating allows
Armenia to obtain investment rating. Due to that Armenian banks will
be able to attract international capital to Armenia for longer terms.
He said that at present only 3 banks are involved in that activity
and are expecting to receive their credit rating in September.
Tigran Sarkisian also noted that the rating given to Armenia is
a positive indicator. He said that Armenia is on one level with
Azerbaijan, has 1 point advantage of Turkey and 2 of Georgia.
Armenia’s rating allows the government to issue obligations and
distribute them on the international market. Mr. Sarkisian said
that according to Moody’s new policy, each bank can also have its
individual rating.
Finance and Economy Minister Vardan Khachatrian in his return noted
that in the nearest few years the Government of Armenia will not
issue obligations. He also added that Armenia’s rating by Moody’s
is one point higher that the rating by Fitch Ratings. He explained
that Fitch Ratings overestimated the finance risk connected with
the Nagorno-Karabakh conflict. As a negative factor of the Armenian
economy, pointed out by Moody’s, the Minister named the high rate
of dollarization.

UNION OF ARMENIAN BANKS AND RA CENTRAL BANK ANNOUNCE ABOUT JOINT
EFFORTS DIRECTED TO REDUCTION OF SHADOW ECONOMY AND ACTIVATION OF
BANKS IN MARKET OF CREDITTING ARMENIAN ECONOMY
Yerevan, July 31. ArmInfo. Today, in the course of the joint meeting
of the Union of the Armenian Banks and RA Central Bank, it decided
to carry out joint arrangements directed to reduction of the shadow
economy and activation of the banks in the crediting market. Chairman
of RA Central Bank Tigran Sargsian and Stepan Gishian, chairman of
Board of the Union of the Armenian Banks, stated about this in their
speeches. They stated that the level of shadow economy is quite high
in Armenia and this hinders the fair competition.
Sargsian stated that the banking system of Armenia functions out of
the shadow and its published indicators fully reflect the reality. He
added that due to its adequacy and liquidity, the banking system
of Armenia is a rather high level. The ROA and ROE profitability
level of our banking system is even higher than that of the European
countries. Sargsian said that in the coming few years the high level
of profitability will secure stability and high tempos of development
for the banking system of Armenia.
In his turn, S. Gishian pointed out the main strategic lines for the
development of the Union of the Armenian Banks for 2006. This deepening
of cooperation between UBA and RA Central Bank, RA Government and RA
Parliament, with the European Banking Federation, application of new
daft laws for will contribute to the improvement of the legislative
climate and development of the banking system of Armenia.
Touching upon the achievements fixed in the banking system of Armenian
in 2005, Gishian said that the GDP grew by 13,9%, the common actives
of the banks by 21,2%, common capital by 46,6%, the volume of credit
investments by 36%, the profitability of the capital by 15,3%.
In 2005, the liquidity of the banking system made 41,8%, the credit
rates decreased by almost 4 times. Gishian stated that RA Central
Bank will coordinate the steps envisaged for 2006.
Five banks of Armenia participated in today’s meeting, particularly,
Areximbank, Armenian Development Bank, “Ararat” Bank, ArmInvestBank
and Unibank.

BANK SYSTEM INFLUENCE ON THE ECONOMY IN ARMENIA S THE LOWEST AMONG THE CIS STATES
Yerevan, July 31. ArmInfo. The most important problem of the Armenian
banking system is the low level of finance mediation and in order
to solve it crediting volumes are to be increased. Regretfully the
head of the Central Bank Tigran Sarkisian stated that the influence
of bank mediation on economy in Armenia is the lowest among the
CIS states. One of the reasons for that is the shadow economy: the
significant cash assets of the shadow economy are avoiding the bank
mediation because of the adoption of European accounting system.
The next problem is that the companies are presenting the banks
balance-sheets, which often considerably vary from those presented to
the Tax Service. This matter was also considered with the KfW bank,
Germany, running a number of programs in Armenia, and it was made
agree that the Armenian banks will receive from the companies the
same documentation as the Customs Service.
Speaking of the measures taken by the Central Bank for the reduction
of shadow economy, the head of the bank said that first of all
rating of Armenian enterprises was held. 10 of 48 enterprises,
submitted for rating, received rather high rates, which allows
them to issue obligations subjects to REPO transactions. In order
to increase the number of enterprises functioning out of the shadow
field, finance supervision has been started and the Central Bank is
regularly publishing of the biggest debtor-enterprises. At present the
Credit Register, which receives about 1000 queries monthly, has made
possible 100% refundability of credits. Mr. Sarkisian said that at
present only one private crediting bureau is functioning and added
that soon the necessity of new such bureaus will become obvious.
Opening of new crediting bureaus will provide the opportunity of
applying the scoring system in Armenia.
The head of the Central Bank said that the monitoring of corporate
management system, only recently applied in Armenia, will be held
in the next 6 months, most probably by the Armenian Banks’ Union.
According to Mr. Sarkisian, more and more attention is being paid to
the reduction of money-laundering level in Armenia, as the republic
would not be able to integrate with international finance structures
without it. In connection with that Money Laundering Elimination
Commission has been established by the order of the President of
Armenia. Representatives of the Tax and Customs services, Police,
National Security Service, Interpol are included in the new structure.

THE STOCK EXCHANGE DOLLAR RATE MADE UP 410,55 AMD/$1
Yerevan. July 31. ArmInfo. During tender at the Armenian Stock
Exchange ArmEx 21 board lots were sold at the amount of AMD 572,7
million ($1,4 million). The dollar rate made up AMD 410,55/$1, 0,94%
less than on July 28.
Demand volume equaled $660 thousand and the supply volume – $400
thousand. The best demand price was marked on the level of AMD 410,3/$1
(average – AMD 409,27/$1), and the best supply price – AMD 414,00/$1
(average – AMD 414,48/$1). EUR 100 thousand supply was also registered.
The opening price was fixed at the level of AMD 417,01/$1, closing
price – AMD 417,00/$1, minimal price – AMD 417,00/$1 and maximal
price – AMD 417,01/$1.
Totally, in January 4 – July 31, $87,047 million was sold at ArmEx;
the average rate decreased from AMD 453,1 to 410,25/$1, AMD. The
maximal deal volume was detected on July 11 – 38 board lots at
the amount of $3,050 million and at the rate of AMD 417,83/$1, the
minimal volume – July 12 – 1 board lot at the amount of $50 thousand
(AMD 20,893 million) at the rate of AMD 417,85/$1. Since January 4
only 2 EURO exchange deals were driven – on April 6 (EUR 5 thousand,
AMD 554/EUR1) and on June 22 (EUR 1 thousand, AMD 532/EUR 1).

US Senate Again Discusses Candidacy of New Ambassador to Armenia
PanARMENIAN.Net
01.08.2006 13:34 GMT+04:00
/PanARMENIAN.Net/ August 1 the US Senate will again discuss candidacy
of the new Ambassador to Armenia Richard Hoagland. According to the
regulations, the discussion may be stopped, if even one Senator
is against him and this happens very seldom. Nevertheless, the
Armenian National Committee of America (ANCA) expects that at least
one Senator will do that. As already reported, the ANCA demands that
the US Congress do not confirm Richard Hoagland, as he did not express
a clear attitude towards the fact of the Armenian Genocide. Today
9 out of 18 Senators, who are members of Foreign Affairs Committee,
are against the new Ambassador, reports ANCA.

“Sea, Dreams and Illusions” on August 2-16 in Gyumri
ArmRadio.am
01.08.2006 19:27
The Center of Modern Art of Gyumri will organize the Fifth
International Bienale of Modern Art titled “Sea, Dreams and Illusions”
on August 2-16 in Gyumri. Azat Sargsian, one of the organizers of
the exhibition, informed journalists about this at the July 31 press
conference held in Yerevan, Noyan Tapan reported. This year more
than 80 artists from nearly 20 countries will take part in this
event organized once every two years. Static displays, as well as
art creating actions, events, video-art and installation are envisaged.
Azat Sargsian mentioned that the program is the only one in the region
and its goal is the cultural cooperation with different countries. He
attached importance especially to cooperation with the neighbor
countries, in particular, with Turkey. This year two Turk artists,
who will present a project titled “Storehouse of Dreams” prepared
with the joint efforts of 14 Turk artists, will take part in the event.
In bienale’s coordinator Arpi Tokmajian’s words, the main exhibitions
of the event will take place in Gyumri, in the Style exhibition hall,
Ethnographical Theater, Museum of Aslamazian Sisters, Zigzag shop,
as well as just in the street. Creative working days are envisaged
on the lakeside of Sevan so as the artists will be able to express
the idea of the bienale’s title in their own way.
The participants of the press conference also touched upon many
problems of the Modern Arts Center of Gyumri. In particular, as Arpi
Tokmajian mentioned, today the center hasn’t its own office and staff:
all the works are organized with the support of a group of artists.

1,500 MONUMENTS REGISTERED IN LIBERATED TERRITORIES OF NAGORNO KARABAKH
Armenpress
YEREVAN, AUGUST 1, ARMENPRESS: At present around 1,500 archeological,
architectural and historic monuments are registered in the liberated
territories of Nagorno Karabakh.
Hakob Simonian, the director of the scientific-research center of
historic-cultural heritage at the Armenian Culture and Youth Affairs
Ministry, told Armenpress that during the war the center organized
expeditions during which the members took photos of the monuments,
formed their certificates and made excavations. Simonian noted that
during the first expedition in 1990 surveys were conducted in Getashen
and Martunashen, in 1992 in Kashatagh, Aghdam, Fizuli, Jabrayil,
Zangelan, Kelbajar and Kubatlu.
According to Simonian, the surveys were conducted mainly during war
time as at that time the Armenians were to prove that the territories
belong to them.
Simonian said thanks to the conducted survey “at present we have a
‘tool’ and in case it is used in the diplomatic way we can prove that
these territories belong to Armenians.
>From 1997 to 2001 excavations were conducted in Tsitsernavank, during
which 6 monuments were studied.
Simonian also underscored the excavations of Kerin tomb-field which
started in 2003 and continue up to now.

136 ARMENIANS AND CITIZENS OF ARMENIA ARRIVED THIS NIGHT FROM ALEPPO TO YEREVAN
Yerevan, August 1. ArmInfo. 136 Armenians and citizens of Armenia have
arrived form Aleppo to Yerevan this night, the acting press-secretary
of RA MFA Vladimir Karapetyan told ArmInfo. 15 people of them are
citizens of Armenia.
As Karapetyan noted, 89 people of those, who arrived to Yerevan, went
to Aleppo the day before from Beirut. To be reminded, 642 people (270
are citizens of Armenia) have already arrived to Yerevan from Beirut.
The majority of them are citizens of Lebanon.

778 Armenians have been transported to Armenia from Lebanon
ArmRadio.am
01.08.2006 18:04
About 136 Armenians were flown today early in the morning to Yerevan
from Aleppo. Eighty nine of them were transported yesterday by buses
from Beirut to Aleppo where 47 Armenians living in Syria joined them
and flew to Yerevan, Armenpress news agency reported. Armenian deputy
foreign minister Gegham Gharibjanian said that the number of Armenians
who want to leave Lebanon decreases.
He said at present 30 Armenians, who are not in a hurry to leave the
country, are registered at the Armenian embassy in Lebanon.
Since the beginning of military actions 778 Armenians have been
transported to Armenia from Lebanon. The next regular flight from
Aleppo to Yerevan will be implemented August 3.
The Armenian borough in Lebanon is far from the war zone and has not
been destroyed. There are no victims among the Armenians.
Around 54 Armenians – 49 citizens of Israel and 5 citizens of Armenia –
have so far been transported to Armenia from Israel.

ARMENIA’S BANKING SYSTEM SERVES 745,000 CLIENTS BY END OF MAY 2006
ARKA News Agency, Armenia
Aug 1 2006
YEREVAN, August 1. /ARKA/. In May 2006, the number of clients served
by Armenia’s banking system increased by 9,955 and reached 745,075.
The RA Statistical Service reports that legal entities numbered 37,884
and individuals 707,191.
By May 31, 2006, 919,292 accounts had been registered at Armenia’s
commercial banks, 865,056 of them individual accounts. The combined
accounts of the Armsavingsbank involve 3,469.5ths people.
By June 30, 2006, the balance of deposits attracted from the population
had amounted to AMD 102,748 – an AMD 860 or 0.8% increase.
It increased by AMD 25,243mln or by 32.6% compared to the corresponding
period of last year. P.T.