Defense Minister Serge sargsyan received Peter Semneby
ArmRadio.am
25.07.2006 17:55
July 25 Secretary of the Presidential council on National Security,
RA Defense Minister Serge Sargsyan received the delegation headed by
EU Special Envoy for the South Caucasus Peter Semneby.
The meeting was attended by the Ambassador Extraordinary and
Plenipotentiary of the Federal Republic of Germany to Armenia
Mrs. Haike Peitsch.and Ambassador Extraordinary and Plenipotentiary
of Finland Mrs. Terry Hakkala.
During the meeting the parties turned to the Individual Partnership
Actions Plan. The interlocutors exchanged views on the peaceful
settlement of the Karabakh conflict and the relations with neighboring
countries.
Peter Semneby reconfirmed EU’s readiness to assist Armenia in the
peaceful settlement of the Karabakh conflict.
Reference was made to the involvement of the European Union in the
forthcoming elections.

RETRAINING WORKSHOP FOR ECONOMIC JOURNALIST TO BE HELD IN YEREVAN
Arka News Agency, Armenia
July 25, 2006
YEREVAN, July 25. /ARKA/. The Competitive Armenian Private
Sector Project (CAPSC) is organizing a retraining workshop for
Armenian journalists specializing in economic subjects on July 31.
The CAPSP reports that the goal of the workshop is explaining to local
journalists the main tasks of competitiveness as well as facilitating
the enhancement of competitiveness in certain fields of Armenia’s
economy. The workshop participants will also discuss such topics as
“Determining the economic competitiveness of a company, cluster or
country”, “Methods of encouragement of long-term changes in certain
countries”, “CAPSP’s approaches to tasks of this type in Armenia”,
and “Building up cooperation with Armenian mass media”. Among the
workshop participants will be Director of the research center “Economy
and Values” Manuk Hergnyan, who is to present a modern-day concept
of competitiveness and its application in Armenia.
During the second part, CAPSP’s representatives will present the
results of their work in the IT and tourist spheres. A wide range
of competitiveness-related issues will be considered at the final
press conference. The goal of the USAID-sponsored CAPSP is raising
the employment level in Armenia through encouraging the development
and improving the competitiveness of small and medium-sized enterprises
of the country.
The CAPSP envisages the formation of task groups in each economic
sector, improvement of business abilities, as well as contribution
to the formation of labor force and development of skills. P.T. -0–

Azeri youth representatives revealed Armenia’s occupation policy in All-Russian youth camp
TREND Information, Azerbaijan
July 26, 2006
Author: J.Shahverdiyev
The representatives of Azeri youth raised Nagorno-Karabakh issue
at All-Russian youth camp, Trend reports quoting Elnur Mamedov,
co-founder of “Ireli” youth movement, who is taking part in the event.
During the event that takes place July 20 to 26, 2006 in Tver Region,
representatives of “Ireli” movement reportedly met with head of Russia’
largest youth movement “Nashi”
Vasily Yakimenko.
Besides, said Mamedov, they met with deputy Minister of Defense of
Russia and governors of regions of Tver and Krasnoyarsk, who also
took part in the event. At the meeting, he said, issues concerning
Azerbaijan were discussed. “The min issue we were concerned in was
the certain problems our compatriots face in Russia. Governors said
there is no reason for concern”, said Mamedov.
Mamedov said it was not allowed to raise any nationalism-related
issues in the camp. “We wanted to lead a round table on
Nagorno-Karabakh. Despite their refusal, we told the camp participants
of this problem as much as possible. Since most participants knew
about Nagorno-Karabakh only from Armenian sources, we revealed the
truth”, said Mamedov.

CBA CHAIRMAN: MOODY’S “BA2” RATING IMPORTANT FOR ARMENIA
Arka News Agency, Armenia
July 25, 2006
YEREVAN, July 25. /ARKA/. While announcing the decision of the Moody’s
agency, Chairman of the Central bank of Armenia Tigran Sargsyan told
journalists that the Sovereign rating of “Ba2” in foreign and national
currencies, assigned to Armenia by the Moody’s, is of great importance
for the country for holding its position on the world financial map.
“It is necessary, since it is a signal for the investors of the
international market, showing the solvency of our country and its
financial state”, Sargsyan emphasized, adding that the Moody’s rating
will enable international investors to efficiently estimate the level
of risks and work out accurate strategy for investing money into the
country. Sargsyan emphasized that it will also enable economies of
Armenia to appear on world financial market and find trustworthy
partners. “Getting the Moody’s rating of Ba2, Armenia surpassed
Georgia by two indexes, Turkey – by one index and appeared on equal
level with Azerbaijan”, he said. In his turn Vardan Khachatryan, the RA
Minister of Finance and Economy, said that the Ba2 rating assigned to
Armenia by the Moody’s agency is one point higher, against the rating
assigned by the Fitch agency. “As compared to the Fitch’s rating
scale, the rating assigned by Moody’s corresponds to the ÂÂ level”,
he clarified. On July 24, Moody’s Investors Service international
rating agency assigned to the RA Government “Ba2” sovereign ratings in
international and national currencies. On June 5, 2006, Fitch Ratings
assigned to the Republic of Armenia issuer default rating (IDR) of
“BB-” (BB minus) in foreign and national currencies, with Stabile
Outlook. Fitch also assigned to the republic a Short-term rating of
“B” and a Country Ceiling of “BB-“(BB minus). S.P.
–Boundary_(ID_HGeKgp2976Yva3TLTu7/Vg)–

KOCHARYAN AND SEMNEBI DISCUSS ARMENIA-EU RELATIONS
Arka News Agency, Armenia
July 25, 2006
YEREVAN, July 25. /ARKA/. On July 24, President of Armenia Robert
Kocharyan and Peter Semnebi, the EU Special Representative for
South Caucasus, discussed relations between Armenia and the European
Union in Yerevan. According to the Press Service of the President,
interlocutors touched upon issues of coordination and adoption of the
activities’ program on Armenia within the scope of “New Neighborhood”
EU policy. During the meeting Kocharyan and Semnebi also turned to
the Karabakh conflict and regional developments. Peter Semnebi was
appointed the EU Special Representative for South Caucasus on March 1,
2006. S.P.–0–
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“PARK OF LYONS” TO OPEN IN YEREVAN
Arka News Agency, Armenia
July 25, 2006
YEREVAN, July 25. /ARKA/. David Gevorgyan, head of foreign relations
department of the Yerevan Municipality, informed journalists that in
the nearest future a “Park of Lyons” was going to be opened in Yerevan.
“The park will be one of the symbols of Armenian-French friendship
and close cooperation between Yerevan and Lyons”, he emphasized.
Gevorgyan said 5thsd-sq. m. park will be divided into territories of
Erebuni community of Yerevan. “It is an offspring of diversification
of the cooperation between the two cities”, he said. S.P.

Pro-Kocharian Tycoon’s Party ‘Largest In Armenia’
Radio Liberty, Czech Republic
July 25, 2006
By Ruzanna Stepanian
An ambitious party created by a government-connected tycoon claimed
on Tuesday to be the largest political force in Armenia, dismissing
Defense Minister Serzh Sarkisian’s remarks that it lacks the muscle
to be President Robert Kocharian’s new power base.
In an interview with RFE/RL last week, Sarkisian said Gagik Tsarukian’s
Prosperous Armenia party can not be a counterweight to the governing
Republican Party (HHK) which he joined earlier this month. “Prosperous
Armenia is not yet a party,” he said in what some observers interpreted
as a covert warning to Kocharian not to undercut the HHK.
But a senior member of Prosperous Armenia, Vartan Vartanian, took
issue with Sarkisian, claiming that the party was registered with the
Justice Ministry three years ago and already has as many as 210,000
members and over 300 branches across the country. “I want to make
it clear that the party exists, has a three-year history, and its
[founding] congress has already been held,” he told RFE/RL.
Prosperous Armenia’s existence was officially unveiled only last
January, giving rise to speculation that Kocharian, who has until
now relied on the HHK and several other pro-establishment parties,
is building a new support base to retain his grip on government
after his anticipated resignation 2008. Sarkisian is widely thought
to be planning to become Armenia’s next president, something which a
growing number of local analysts say does not sit well with Kocharian.
Tsarukian’s failure to attend a weekend high-profile congress of
the HHK only added to talk of an unfolding rivalry between the two
political groups. Sources close to Tsarukian said earlier this year
that Prosperous Armenia aims to win next year’s parliamentary election
by capitalizing on the feared tycoon’s vast financial resources and
government levers.
This raised fears that the party will resort to massive vote buying
in a bid to have the largest faction in the next National Assembly.
Vartanian, who is also deputy minister of transport and communications,
sought to allay them. He revealed that Tsarukian presided on Monday
over a closed-door meeting several hundred party activists and issued
a stern warning to those of them who might have joined Prosperous
Armenia “for money.”
“The party is not going to hand out cash. The party is not a money
store,” Vartanian said, insisting that the vast majority of the party
faithful have “rallied around an idea.”
The HHK, which has 30,000 members and the largest faction in the
current Armenian parliament, also intends to make a strong showing
in the 2007 election. Opposition parties say it can not win the vote
without falsifying its results.

Armenia Gets Another Western Credit Rating
Radio Liberty, Czech Republic
July 25, 2006
By Atom Markarian
Moody’s Investors Service, a leading Western risk assessment company,
has assigned its first-ever credit rating to Armenia in what senior
officials in Yerevan described on Tuesday as another milestone in
the country’s transition to the free market.
Moody’s ratings are widely used by investors around the world for
analyzing risks associated with lending to foreign countries and
companies. The BA2 grade given to Armenia signifies a medium level
of creditworthiness.
The chairman of the Armenian Central, Tigran Sarkisian, and Finance
Minister Vartan Khachatrian stressed the fact that Moody’s rated
Armenia more highly than neighboring Georgia and Turkey and put it on
a par with neighboring Azerbaijan. They said the rating will allow
the Armenian government to sell bonds in international financial
markets and will make it easier for local private firms to attract
foreign investments and loans.
Khachatrian made it clear, however, that Yerevan has no intention to
issue so-called Euro-bonds in the near future. “The government does not
plan to issue Euro-bonds and get into greater debt in the coming years
because we think we can achieve our current objectives with internal
resources and loans received from international organizations,”
he told a joint news conference with Sarkisian.
Much of Armenia’s budget deficits have for years been covered by
low-interest loans disbursed by the World Bank and financial grants
provided by Western governments. Proceeds from domestic sales of
government bonds and treasury bills still pale in comparison with
donor funding.
Moody’s rating is slightly higher than the one assigned to Armenia
by another famous rating agency, Fitch, in early June. The latter’s
“sovereign credit rating” of BB- indicated a relatively high risk of
doing business. While praising the country’s “impressive economic
performance,” Fitch said Armenian economy remains “vulnerable to
shocks” due to its high degree of dollarization, underdeveloped
financial services and the unresolved Nagorno-Karabakh conflict.
A statement by the Armenian Central Bank quoted the Moody’s
vice-chairman, Sarah Bertin, as citing the same problems hampering
Armenia’s economic development. She said at the same time that Moody’s
analysts believe that a renewed war in Karabakh is unlikely in the
coming years.

Armenian Judicial Reform Unveiled
Radio Liberty, Czech Republic
July 25, 2006
By Anna Saghabalian
Justice Minister David Harutiunian outlined on Tuesday an impending
reform of Armenia’s judicial and law-enforcement systems which he
said is aimed at making them more independent and less corrupt.
Harutiunian presented a package of relevant legislative amendments
that have been drafted by an ad hoc working group headed by him. The
group was tasked by the government with proposing changes stemming
from the recent reform of the Armenian constitution.
The most controversial and significant of its proposals would
strip Armenia’s Office of the Prosecutor-General of its sweeping
investigative powers and pass them on to the Police Service and the
National Security Service. According to reports in the Armenian press,
Prosecutor-General Aghvan Hovsepian and other top prosecutors have
fiercely resisted the proposed change, fearing that their agency
would become far less powerful as a result.
The disagreement reportedly prompted President Robert Kocharian to
call a special meeting on the issue of top Justice Ministry officials
and prosecutors last May. Kocharian appears to have eventually sided
with Harutiunian. The latter insisted that only the Armenian police
and the former KGB will have the power to conduct pre-trial criminal
investigations.
Harutiunian also unveiled a new draft Judicial Code that envisages
structural changes in the Armenian judiciary. The code calls in
particular for the introduction of new “courts of magistrates” that
will deal only with civil lawsuits and minor criminal offences. The
other Armenian courts of first instance will deal with more serious
crimes such as murders and armed robberies.
The proposed legislation would also curtail the powers of the Armenian
Court of Appeals. It would be able to accept appeals only in the event
of “judicial mistakes” committed by lower courts or “new circumstances”
emerging after original litigations.
According to Harutiunian, these changes will render Armenia’s courts
more independent and objective. “This is essential for the country’s
continued development,” he told reporters. “Without solving this
issue we won’t have the kind of development which we deserve.”
The Armenian judiciary had already undergone a sweeping structural
reform more than a decade ago but hardly became more independent as
a result. Local courts rarely acquit criminal suspects, investigate
widespread torture allegations and hand down rulings going against
the government’s wishes. Corruption among Armenian judges is also a
serious problem.
Harutiunian, who has plaid a key role in the selection and appointment
of judges, himself has been accused of exercising considerable
influence on their decisions. He admitted on Tuesday that many judges
“very often abuse their powers.” “We are out to conclude that the
situation is not good and that effective measures are need to rectify
this situation,” he said.
Some of the recently enacted amendments to the Armenian constitution
are supposed to boost judicial independence by seriously curbing
President Robert Kocharian’s hitherto unrestricted powers to appoint
and sack judges. But independent lawyers say it will take years before
the amendments can make a difference.
From: Emil Lazarian | Ararat NewsPress

Tigran Torosian: “Azerbaijan has no courage to recognize Nagorno Garabagh Republic officially”
Azeri Press Agency, Azerbaijan
July 25, 2006
“Azerbaijan deals with war very often, because official Baku has no
courage to recognize Nagorno Garabagh officially.” Armenian Parliament
speaker Tigran Torosian announced it. (APA).
“They understand in Azerbaijan that there is not any base and
perspective of starting military operations in Nagorno Garabagh.
International community within the last two years started self
determination right of Nagorno Garabagh, we needed 17 years of time
for that.”/APA/