SME STATE ASSISTANCE PRODUCES RESULTS
Noyan Tapan
Mar 27 2006
YEREVAN, MARCH 27, NOYAN TAPAN. Under the 2005 state program
on assistance to small and medium enterprises (SME) of Armenia,
about 4.5 thousand small and medium enterprises received state
assistance. Ishkhan Karapetian, Director of the SME National
Decelopment Center (NDC) of Armenia, stated this on March 24. In his
words, assistance was provided for credit guarantees and introduction
of quality management systems, support for businessmen who have just
started running a business, market promotion of goods, as well as for
business information, advice and training. The SME NDC director said
that the implementation of the credit quarantees program started in
2005. Within the program’s framework, 54 guarantees of a total of 195.4
mln drams were given in all the Armenian marzes, which allowed SME to
get loans of the total amount of 370 mln drams (about 822 thousand USD)
at lower interest rates than the market ones.
The credit guarantees program was implemented by 100% in the Armenian
marzes, by 80% – in remote and border areas, where there are still
credit security-related problems. The amount of 7 credit guarantees
has already been repaid, while the credit repayment index makes up
100%. According to I. Karapetian, turnover volumes grew by 30-40%,
jobs – by 24% and tax payment – by 19-20% at the enterprises that
received credit guarantees. It is envisaged to extend the program
in 2006. Besides, within the framework of the SME state assistance
program, a program on assistance of beginner-businessmen was
implemented in three Armenian marzes with the participation of
67 beginner-businessmen, 13 of which were registered as economic
entities. I. Karapetian noted that with the creation of the 4 regional
branches of the SME NDC in 2005, the process of forming a network
of branches was completed, and branches are now functioning in all
Armenian marzes. According to him, the state budget resources for
the implementation of the SME assistance program will increase by
50 mln drams in 2006 compared with 2005 and make 350 mln drams, and
this sum will be allocated for the development of new programs and
mechanisms of SME assistance.
Provision of assistance to the SME of Armenian marzes, especially
to those in border areas, will remain the main direction of the
program. This year it is envisaged to extent the program on assistance
to beginner-businessmen to all the Armenian marzes. In response to a
question of NT correspondent, the SME NDC director said that since
2002 the center has assisted 15-20 companies with introducing the
quality management systems, as a result of which their turnover and
exports significantly increased. According to him, the businessmen
attach now much more importance to the necessity to introduce new
methods of business running than they did in 2002.

SHARE OF SME REGISTERED IN ARMENIAN MARZES ON INCREASE
Noyan Tapan
Mar 27 2006
YEREVAN, MARCH 27, NOYAN TAPAN. In 2005, the production of Armenian
small and medium enterprises (SME) accounted for 40% of Armenia’s
gross domestic product (GDP), which is a 1.4% increase compared with
the previous year, and a 20.3% increase on 2000. Ishkhan Karapetian,
Director of the Armenian SME National Development Center (NDC), stated
this on March 24. According to him, in 2005, the SME development index
grew by 55 points to 172 points, whereas in 2003 this index made 58
points (the SME development index is an aggregated index, which is
calculated based on the share of the private sector’s production in
GDP, the percentage of those employed at SME in the total number,
and GDP per capita). In addition, the share of SME production in
the volume of exports increased as well: in 2005, it made up 16.4%
against 15.3% in 2004 and 14.3% in 2002. According to I. Karapetian,
the share of small and medium enterprises in the total number of
enterprises registered in late 2005 constituted 97.8%. The pecentage of
SME registered in the Armenian marzes in the total number of SME grew
and made 52% in 2005, which is indicative of the fact that the economic
activity gap between Yerevan and the marzes is decreasing. According
to I. Karapetian, in 2005, about 9 thousand SME were registered in
Armenia, thanks to which 22-23 thousand jobs were created.

ADB TO ALLOCATE FUNDS FOR DEVELOPMENT OF MORTGAGE MARKET IN ARMENIA
Noyan Tapan
Mar 27 2006
YEREVAN, MARCH 27, NOYAN TAPAN. The Asian Development Bank (ADB)
envisages to allocate funds for the development of the Armenian
mortgage market. NT correspondent was informed at the RA Ministry
of Finance and Economy that the ADB provides credits and grants to
its member states for the purpose of implementing the development
programs which have been given a prioirity. Armenia joined the ADB
in September 2005. The Asian Development Bank’s membership currently
numbers 64 member sttaes, with Japan and the US having the largest
shares in the ADB’s capital.

WB PLANS TO IMPLEMENT PROGRAM OF REEQUIPMENT OF HYDROMETEOROLOGICAL SERVICE IN ARMENIA
Noyan Tapan
Mar 27 2006
YEREVAN, MARCH 27, NOYAN TAPAN. Armenia is among 6 countries where
it’s planned to implement a program aimed at estimation of efficiency
of perfection of forecasting and warning systems for the purpose of
reequipment of hudrometeorological services by the World Bank (WB). As
Noyan Tapan correspondent was informed by Levon Vardanian, Director
of the Armenian State Service of Hydrometeorology and Monitoring
(Armstatehydromet), the program’s preliminary cost is about 5 mln
300 thousand USD. It was also mentioned that the current isufficient
level of technical equipment of Armstatehydromet has a negative impact
on the country’s hydrometeorological service quality. According to
L.Vardanian, the direct losses the Armenian economy suffered as a
result of dangerous hydrometeorological fenomena are estimated in
the amount of 35 bln drams (about 77 mln USD) a year. He mentioned
that according to experts, usage of hydrometeorological information
enables to prevent 30% of these losses.

YEREVAN MAYOR’S OFFICE TO HAVE ITS WEB SITE IN APRIL
Noyan Tapan
Mar 27 2006
YEREVAN, MARCH 27, NOYAN TAPAN. The Center for Yerevan Management
Technologies is preparing the web site of Yerevan Mayor’s Office
(), the presentation of which will take place in
mid-April. And before it RA citizens can present their proposals
and opinions on the web site’s preliminary variant, which is already
ready. Center Director Khazhak Karayan informed about it at the March
27 press conference. According to him, in particular, information on
urban development, construction programs envisaged by Yerevan Mayor’s
Office in 2006-2007, information on activity of its departments will
be placed on the site. According to Kh.Karayan, soon new management
technologies will be introduced at Yerevan Mayor’s Office, which
will contribute to raising of the transparency of works of Yerevan
Mayor’s Office. In particular, a united information-analytical system
of Yerevan will be established, an internal system of electronic
management of Yerevan Mayor’s Office will be introduced by the end
of April and then an open electronic system will be established.
According to Kh.Karayan, the latter will enable the citizens to follow
the process of examination of their letters and complaints addressed to
Yerevan Mayor’s Office. Khazhak Karayan also informed that studies are
being conducted in internal structures of Yerevan Mayor’s Office, the
results of which will enable to work out a new conception of reforms.

MAJOR EVENTS OF YEAR OF ARMENIA IN FRANCE TO BE HELD STARTING SEPTEMBER 2006
Noyan Tapan
Mar 27 2006
YEREVAN, MARCH 27, NOYAN TAPAN. The major events of Year of Armenia
in France will be held in the period of September 2006 – September
2007. Mushegh Sargsian, Deputy Director of Export and Enterprise
Development of the Armenian Development Agency (ADA), told it to
NT correspondent. According to him, the program of these events,
particularly exhibitions and business forums, will be developed until
mid 2006. In his opinion, the holding of the economic sphere-related
events should promote exports of not only Armenian foodstuffs but
also handicrafts, carpets and works of art to France. The deputy
director said that the potential for development of trade and economic
relations between Armenia and France, which is based in particular on
the friendly political relations between the two countries and the
existence of a large and prosperous Armenian community in France,
has not been used fully. M. Sargsian expressed an opinion that
accumulation of an experience of exporting the Armenian production
to the French market with its high requirements regarding quality
and other characteristics of goods is important for Armenia, since a
commodity that has entered the French market can meet any standards,
including European ones.

RA MINISTRY OF CULTURE AND YOUTH AFFAIRS ANNOUNCES GRANT COMPETITION FOR YOUTH ORGANIZATIONS
Noyan Tapan
Mar 27 2006
YEREVAN, MARCH 27, NOYAN TAPAN. One of the priorities of strategy
of the 2006-2007 state youth policy adopted by RA government is the
regulation of the youth legislative field, solution of problems of
regional youth. For the very purpose youth centers will be established
this year in all Armenian regions.
5 mln drams (about 11 thousand USD) has been allocated from the
state budget for the foundation of each of them. They will be aimed
at raising the efficiency of conducting the state youth policy in
the regions. As Noyan Tapan was informed by the Information Analysis
and Programs Elaboration Department of RA Culture and Youth Affairs
Ministry’s Center for Organization of Youth Events, international
cooperation programs are also considered as important. They will be
implemented in 3 directions: European Union, Council of Europe and CIS
countries. In particular, agreements on realizing Council of Europe
grants within the limits of 140 thousand euros in coming 2 years
in Armenia were reached and together with the UNDP it’s envisaged
to implement programs on providing credits to young families or
businessmen in the Armenian border regions.
Besides, some measures are being undertaken for the purpose of
strengthening contacts between the state and the youth NGOs. RA
Ministry of Culture and Youth Affairs has annouced a grant competition
within the limits of 1.5 mln drams for youth NGOs.

COUNCIL OF EUROPE TO ASSIST IMPROVEMENT OF ARMENIAN JUDICIAL SYSTEM
Noyan Tapan
Mar 27 2006
YEREVAN, MARCH 27, NOYAN TAPAN. The possibilities of cooperation in
different directions between the Council of Europe and the Armenian
judicial system were discussed at the March 27 meeting of RA Cassation
Court Chairman Hovhannes Manukian and Council of Europe Secretary
General’s Special Representative Boyana Urumova. As Noyan Tapan was
informed by the Cassation Court’s Spokesperson, the interlocutors
touched upon the current legislative developments in the Armenian
judicial system, especiallyn the revision of the draft Judicial
Code. Presenting separate provisions of the draft Judicial Code,
H.Manukian attached importance to the fact that it concerns almost
all spheres of the judicial system’s activity and in the future
will be a basis for working out trial codes. It was mentioned that
at the current stage of reforms there is a necessity to change the
current institutions and to form new ones (in particular, judicial
self-government bodies, meeting of judges, council of judges,
judicial department, judicial service). H.Manukian also touched
upon the application of the powers reserved for the Cassation Court
by the Constitution. The Special Representative of CE Secretary
General informed that the CE respective specialists will also
consider the draft Judicial Code and will present the corresponding
opinion. B.Urumova also attached importance to issues of professional
retraining, as well as translation of the European Court’s precedent
decisions.

RA OMBUDSMAN TO TAKE PART IN EUROPEAN OMBUDSMEN INSTITUTION’S SPECIAL SITTING
Noyan Tapan
Mar 27 2006
YEREVAN, MARCH 27, NOYAN TAPAN. RA Ombudsman Armen Haroutiunian will
take part in the special sitting of the European Ombudsman Institution
to be held on April 1 in the Austrian city of Insburg. According to the
radio “Liberty”, it’s envisaged to make changes in the regulations
of the European Ombudsman Institution, to discuss the issue of
admitting new members and to listen to the organization Chairman’s
report at the sitting. The sitting participants will also analyse
the current situation of human rights sphere in Europe. The Armenian
Ombudsman Institution has been a member to the European Ombudsman
Institution since 2004 October when it became the 90th full member
of the organization.

ARMENIA MAY WIN OF NEW RELATIONS DICTATED BY CIVILIZATION
Noyan Tapan
Mar 27 2006
YEREVAN, MARCH 27, NOYAN TAPAN. “Armenians’ distinctiveness allow to
go into the present vortex of civilization, not being afraid of being
lost there, and instead of that Armenian may win.” Philosopher Ashot
Voskanian expressed such a viewpoint at the March 24 discussion on the
theme “Clash of Civilizations and Armenia” held at the “Hayeli” press
club. According to him, it is not enough right when an attempt is made
to exchange the contrast of former socialist and capitalist systems
by contrast of civilizations. “I’m afraid that we speaking about
civilizations a lot, leave aside the problem of historic development,”
A.Voskanian mentioned. In cultural critic Hrach Bayadian’s opinion,
clash of civilizations is not a new phenomenon in reality. According
to him, if not the clash but meeting of civilizations today happens
almost everywhere.
H.Bayadian mentioned the paculiarity of the Armenian reality,
Armenia, being strangely and exclusively ethnically clean, almost
homogeneous, has not good imagination about the world of many ethnics,
cultures. However, according to him, “today there are signs that the
world’s being of many ethnics and cultures will reach a level during
the coming years that it will allow us to feel difficulties as well
as differences of the state of many ethnics, cultures on ourselves,
and, according to that, to better undersand our role in that global
process.” A.Voskanian drew the discussion participants’ attention to
that reality that, according to him, “We have in Armenia an absolutely
undeveloped society, which is not developed also for the reason that
we just have no society practically for 100s of years.” H.Bayadian
mentioned in his turn that no stratum of intellectuals exists in
Armenia: “Today’s Armenian humanitarian, sociologist lives in the 19th
century, his voice is not in this world.” Even more, according to him,
the contemporary Armenian society has no elite as the authorities
has no legality to establish such an elite: “If the authorities give
any award to anybody, he is more defamed but doesn’t become elite,”
he emphasized.