Armenia needs $131 mln more to cope with poverty
Regnum, Russia
July 25, 2006
In addition to the money allocated for social assistance, Armenia
will need around $131mln, or 2.9 percent GNP, to overcome poverty
in the country, according to a recent report on planning, monitoring
and evaluation of income-generating and employment programs in Armenia.
To eradicate extreme poverty, around $12.5mln or 0.3 percent of GNP
will be needed. Much more will be needed, since impeccable realization
of the help-rendering process is impossible. The assessment is based
on many countries’ experience, including Poland, Hungary, Bulgaria,
Estonia, and Russia, where expenditures for giving to the poor $1
range in between $1.5-$8.
Among the factors influencing the level of poverty in Armenia are
household demographic situation, household migrants’ income, and
household employment. The living standards of households in which
women are breadwinners are lower than those of households where
men do the business. The availability of migrants in a household
significantly lowers the risks of poverty. Yerevan dwellers have much
higher living standards than residents of other towns and regions.
About 34 percent of population, or 1mln people, are considered poor,
of which 200, 000 are extremely poor.

Armenia growing by 10% per year
Financial Mirror, Cyprus
July 25, 2006
Assigned a Ba2 rating
Armenia has been experiencing real GDP growth rates of around 10% per
annum or above since 2001, while inflationary pressure have remained
subdued due to the appreciation of the dram (the local currency)
and to a cautious monetary and fiscal policy stance.
This led Moody’s Investors Service to assign on Monday a Ba2 foreign
and domestic currency ratings to the government of Armenia.
The rating was given in light of the progress made by the country since
1995, the year that marked the end of the seven-year contraction that
followed the collapse of the Soviet Union.
“We believe that, over the medium term, there is sufficient scope
for further GDP growth such that it will help alleviate poverty and
reduce unemployment, both of which remain high in Armenia,” said
Moody’s Vice President Sara Bertin.
“Moreover, the rating is supported by the limited level and favorable
maturity structure of Armenia’s foreign-currency denominated debt.”
She said that with a 23% debt-to GDP ratio at the end of 2005, the
country compares well to its peers. Ninety percent of the debt is
owed to multilateral lenders on concessional terms representing a
long maturity and associated minimal debt-servicing cost.
“We have also taken note of the high level of dollarzation and the
country’s lack of financial depth,” said Bertin.
Capped by geopolitical factors
Moody’s rating is capped by geopolical factors, said the analyst.
Though the worst fighting over the territory of Nagorno Karabakh
ended in 1993, the conflict remains stalemated, with the leaders of
the Armenian-inhabited enclave claiming an independent status that
no other state has recognized.
“Moody’s assigns a very low probability that the conflict between
Azeris and Armenians might resume over the short to medium term,”
said Bertin. “As long as a credible and sustainable solution has yet
to be found, uncertainties remain over the countries of the South
Caucasus. Due to their borders with Iran, countries such as Armenia
and Azerbidjan are potential strategic partners for the United States,
Russia and Iran.”
The foreign currency country ceiling for bonds and notes is Baa3,
which takes into account Moody’s recent change in rating methodology,
that incorporates reduced moratorium risk and sometimes distinguishes
significantly between the foreign currency country ceilings and
government foreign currency issuer rating. The country ceiling for
foreign currency bank deposits is Ba3. The local currency guideline,
the highest possible rating that could be assigned to obligors and
obligations denominated in local currency within the country, and the
local currency bank deposit ceiling are at A3 and Baa1 respectively.
All ratings carry a stable outlook.

Film on Cilicia Sail Vessel Voyage to Be Screened in Moscow
PanARMENIAN.Net
25.07.2006 16:17 GMT+04:00
/PanARMENIAN.Net/ August 1, 2006 Voyage in Seven Seas film will
be presented at Rolan Moscow cinema within the Year of Armenia
in Russia. The picture is dedicated to the navigation of Cilicia
famous sailing vessel around Europe. According to the Yerkramas,
the newspaper of Armenians of Russia, Cilicia was built by a group
of enthusiasts of Ayas Yerevan Club of Sea Research on the basis of
ancient manuscripts and miniatures, using medieval technologies. It
copies Armenian Cilician trade ships of the 13th century. Clothes,
food, navigation tools and equipment aboard were similar to those of
ancient Armenian merchants. The other day Cilicia arrived from UK
and moored in Saint Petersburg, from where it will head for Moscow
via Russian channels.

Armenian Film Festival to Be Held in San Paolo
PanARMENIAN.Net
25.07.2006 16:27 GMT+04:00
/PanARMENIAN.Net/ Ararat: Armenian and Diaspora Cinema Masters Film
Festival will be held in San Paolo, Brazil. The event marks the the
15th anniversary of Armenia’s independence. Films by Sergey Paradjanov,
Vigen Chaldranyan, Albert Lazarian and Ruben Kochar will be screened
at the Festival. Atom Egoyan, Henry Vernoy and Robert Keshishyan will
represent the Armenian Diaspora at the event. A total of 11 pictures
will be screened.
The Festival is organized with participation of the Armenian Consulate
General in Brazil, Armenian Ministry of Culture and San Paolo Culture
Center. Armenia: a Country of Ancestors exhibition by Norayr Shahinyan
young photographer from Brazil will also open at the Center. 30 photos
out of more than 10 thousand shot in Armenia in 2004 will be shown,
reports the Press Service of the Armenian MFA.

Semneby: EU for Solving Karabakh Issue Peacefully
PanARMENIAN.Net
25.07.2006 17:11 GMT+04:00
/PanARMENIAN.Net/ Today Secretary of the National Security Council
at the Armenian President, Armenian MOD Head Serge Sargsyan met
with EU Special Representative for the South Caucasus Peter Semneby,
Spokesperson for Armenian Defense Minister, colonel Seyran Shahsuvaryan
told PanARMENIAN.Net. German and Finnish Ambassadors Haike Renate
Peitsch and Terry Akala were present at the meeting. During the meeting
the parties discussed the EU-Armenia action Plan. They exchanged
views on settlement of the Nagorno Karabakh conflict and relations
with neighboring countries. Semneby reaffirmed EU is for peaceful
settlement of Karabakh issue. The interlocutors also discussed EU
involvement in coming parliamentary election in Armenia.

State Awards Presented to Armenian Peacekeepers
PanARMENIAN.Net
25.07.2006 18:52 GMT+04:00
/PanARMENIAN.Net/ Armenian peacekeepers, who participated in
operations to settle the Kosovo conflict and post-war restoration of
Iraq are presented with medals and diplomas. By an order of Armenian
Defense Minister Serge Sargsyan six servicemen of Armenia are awarded
Andranik Ozanyan and Drastamat Kanayan medals, sixteen got diplomas.
Sargsyan also thanked the Armenian peacekeepers in person.

MOODY ASSIGNS ARMENIA Ba2 RATING
Armenpress
YEREVAN, JULY 25, ARMENPRESS: The governor of the Central Bank of
Armenia, Tigran Sarkisian, said today the Moody’s Investors Service
had assigned on Monday a Ba2 foreign and domestic currency ratings
to the government of Armenia.
He said Moody made its decision based on continued GDP growth rates
of around 10% per annum or above since 2001, the subdued inflationary
pressure due to the appreciation of the national currency dram and
to a cautious monetary and fiscal policy stance.
Sarkisian said the rating was given in light of the progress made by
the country since 1995, the year that marked the end of the seven-year
contraction that followed the collapse of the Soviet Union.
“We believe that over the medium term, there is sufficient scope
for further GDP growth such that it will help alleviate poverty
and reduce unemployment, both of which remain high in Armenia,”
Moody’s Vice President Sara Bertin was quoted as saying in a press
release. “Moreover, the rating is supported by the limited level and
favorable maturity structure of Armenia’s foreign-currency denominated
debt,” she said.
She said that with a 23% debt-to GDP ratio at the end of 2005, the
country compares well to its peers.
Ninety percent of the debt is owed to multilateral lenders on
concessional terms representing a long maturity and associated minimal
debt-servicing cost.
“We have also taken note of the high level of dollarization and the
country’s lack of financial depth,” said Bertin.
“Moody’s assigns a very low probability that the conflict between
Azeris and Armenians might resume over the short to medium term,”
said Bertin. “As long as a credible and sustainable solution has yet
to be found to the conflict, uncertainties remain over the countries
of the South Caucasus. Due to their borders with Iran, countries such
as Armenia and Azerbaijan are potential strategic partners for the
United States, Russia and Iran,” she said.
Tigran Sarkisian said this rating allows Armenia to have its own place
in the international financial markets and gives foreign companies and
private businessmen to have a clear idea of Armenia and its economy
and is essential in their deciding whether to invest here or not.
The governor said five local commercial banks have already asked the
Moody’s for their, possibly higher individual l ratings.

RA FOREIGN MINISTER RECEIVES PETER SEMNEBY
AZG Armenian Daily #139, 26/07/2006
Meeting
Foreign Minister of Armenia Vartan Oskanian received the EU
Special Representative in South Caucasus Peter Semneby. On a press
conference the Minister said that the main topics of the meeting
were the Armenia-EU relations, the situation in the Middle East, the
situation on the Russia- Georgia border (The Upper Lars checkpoint),
and the Nagorno-Karabakh conflict. Emphasizing the importance of
fiar and independent elections in 2007, he promised to render any
available assistance.
From: Emil Lazarian | Ararat NewsPress

RA FOREIGN MINISTER BELIEVES MATTHEW BRYZA TO BRING NO
NEW SUGGESTIONS FOR NAGORNO KARABAKH SETTLEMENT
AZG Armenian Daily #139, 26/07/2006
Opinion
US OSCE MG Co-Chair Matthew Bryza is not going to bring any new
suggestions for the Nagorno Karabakh settlement on his July 29 visit
to Yerevan. Vartan Oskanian, RA Foreign Minister, stated this at
today’s press conference. “Our expectations from the visit of the US
Co-Chair of the OSCE MG are linked to his ability whether he will
manage to make the Azeries return to the negotiations or not. If
Azerbaijan agrees to continue the suggestions, there will appear an
opportunity to enter a new stage of the negotiations and fix progress,”
Oskanian said. He added that if Azerbaijan again disapproves the
suggestions of the co-chairs, the situation in Nagorno Karabakh may
get complicated. According to Oskanian, the package of the OSCE MG
suggestions may be considered also in 2007, but, taking into account
the coming elections, it’s getting more complicated to achieve the
agreement. “The new package can’t be just an occasional one, there can
be slight corrections to certain points, but the main principles will
not be changed,” RA Foreign Minister emphasized. Besides he said that
Armenia, unlike Azerbaijan, has no problem with signing the agreement
about the new stage of the EU ‘New Neighborhood’ program. The Minister
said that the approximate date of the signature is already known
and that Armenia will be certainly ready for it by that moment. He
added that EU Chair-state Finland is inclined to sign the partnership
agreement with the Southern Caucasian states.
From: Emil Lazarian | Ararat NewsPress

PETER SEMNEBY: EU IS CONCERNED ABOUT THE BLOCKING OF UPPER LARS CONTROL POINT
AZG Armenian Daily #139, 26/07/2006
Opinion
“The Blocking of the Upper Lars control point aroused the concern in
the European Union,” Peter Semneby, EU Special Representative in the
South Caucasus, said this at today’s joint press conference with RA
Foreign Minister Vartan Oskanian. Semneby stated that EU realizes all
the difficulties that were caused after the blocking of the Upper Lars
control point. He added that in the course of his visit to Georgia,
he discussed the problems between Russia and Georgia, particularly the
blocking of the border that concerns Armenia as well. “The given issue
also caused the statement of the country in chair of EU few days ago,”
Semneby said.