ARMENIAN BANKS PROVIDE CREDITS OF 450 MLN DOLLARS AS OF LATE FEBRUARY 2006
Noyan Tapan
Apr 06 2006
YEREVAN, APRIL 6, NOYAN TAPAN. The total amount of credits provided
by the Armenian commercial banks made 197 bln 127 mln drams (about
450 mln USD) as of February 28, 2006. The credit investments account
for 96.88%, deferred loans of banks – for 2%, and overdue loans –
for 1,12% of this amount. According to the RA National Statistical
Service, the balance of the population’s deposits with the banks
grew by 24.5% compared with the same day of last year and made 19 bln
990 mln drams. In January-February 2006, the expenditures related to
the sale and purchase of foreign currency in the RA banking system
exceeded the revenues by 19,003.6 mln drams and made 23 bln 558.2
mln drams and 43 bln 561.8 mln drams respectively.

PARUYR HAYRIKIAN: DELIGHT OF “WINNING” LOW GAS TARIFF BY PROVIDING RUSSIA WITH GAS IMPORTED FROM IRAN IS DECEIT
Noyan Tapan
Apr 06 2006
YEREVAN, APRIL 6, NOYAN TAPAN. The delight of “winning” a low
tariff for gas by providing Russia with gas imported from Iran
is just a deceit. Paruyr Hayrikian, Chairman of the National
Self-Determination Union, expressed such an opinion at the April
6 press conference. According to him, “by an unintelligible logic
we are deprived of our main advantage, the alternative possibility
of gass supply”. Hayrikian declared that the authorities want to
deprive the Armenian people of the possibility to have alternative
and competitive prices for gas in the coming decades for this low
price for gas, which will be the hardest blow delivered to Armenia’s
energy security and independence.
According to him, “the independence achieved 15 years ago through a
referendum is taken away from our children with a prospect of dozens
of years, today because of economizing money we make our children
hostages of the Russian imperialism”. From point of view of the
national insterests, according to P.Hayrikian “it is more beneficial
to accept the price thrusted upon by Russia than to let them have our
share of the Iranian gas on the pretext of reduction of the price
for gas”. The National Self-Determination Union Chairman said that
Armenian-Turkish relations continue to be regulated by Russian-Turkish
agreements, i.e. they are submitted to Russia, and an attempt to
submit the Armenian-Iranian relations to Russia is also being made
today. According to Hayrikian, the National Self-Determination Union
considers it possible to organize a rally in front of the building
of RA government on their own or in association with other forces.

400.4 MLN DOLLARS INVESTED IN REAL SECTOR OF ARMENIAN ECONOMY IN 2005
Noyan Tapan
Apr 06 2006
YEREVAN, APRIL 6, NOYAN TAPAN. In 2005, the foreign investment flows
in the Armenian economy (including those received through the state
governance and banking systems) amounted to 504.5 mln USD (a 8.3%
growth on 2004). The foreign investments in the real sector of the
economy (without those received through the state governance and
banking systems) made 400.4 mln USD (a 31% growth), with direct
invsetments amounting to 244.4 mln USD (a 8% growth). RA Deputy
Minister of Trade and Economic Development Tigran Davtian stated
this at the April 6 press conference. According to him, in 2005
the investments were more diversified by sectors, since the foreign
investments of over 7 mln USD were made in 8 branches of the Armenian
economy. 132.1 mln USD was invested in the communication sector, 97.5
mln USD – in the mining industry and 53.3 mln USD – in metallurgical
enterprises, investments of 26.4 mln USD were made in the production
of foodstuffs and drinks, 16.4 mln USD was invested in construction,
14.9 mln USD – in air transport infrastructures, 14.4 mln USD – in
the information technologies and electronics sector, and 7 mln USD
in the sphere of hotel services. T. Davtian said that last year the
number of countries making investments in the Armenian economy was on
the increase. European Union countries accounted for the largest share
of investments (about 50%), followed by Russia, the US, Argentina and
Lebanon. In terms of investments in companies, the biggest investments
were made in VivaCell (Lebanese capital, communication sector),
ArmenTel (Greek capital, communication sector), Zangezur Copper and
Molybdenum Enterprise (German capital, mining industry), Yerevan Brandy
Company (French capital) and Kotayk Beer Plant (French capital). It was
noted that the amount of foreign investments in Armenia’s economy in
2000-2005 made 1 bln 466 mln USD, with direct invsetements amounting
to 962 mln USD. The amount of investments in 1991-2005 made 1 bln
996 mln USD, with direct investments of 1 bln 460 mln USD. The deputy
minister underlined that the foreign investments/GDP ratio of 10-12%
registered in 2005 is not yet satisfactory.
According to T. Davtian’s forecasts, in 2006 the amount of foreign
investments in the real sector of the Armenian economy (without
those received through the state governance and banking systems)
will exceed 500 mln USD.

EX-DEFENCE MINISTER OF RA SEES NO CONNECTION BETWEEN INCREASE OF AZERBAIJAN’S MILITARY BUDGET AND IMPROVEMENT OF ITS ARMY’S FIGHTING EFFICIENCY
Noyan Tapan
Apr 06 2006
YEREVAN, APRIL 6, NOYAN TAPAN. Azerbaijan’s statements about increase
of its military budget up to 600 mln USD are made for the purpose of
exerting pressure upon the Armenian leadership in order to compel it
to make concessions in the issue of Karabakh settlement. Vagharshak
Haroutiunian, member of the National Rebirth party’s political board,
Ex-Defence Minister of Armenia, declared this in his interview to
Noyan Tapan correspondent. In his opinion, there are many factors in
the issue, how much the increase of Azerbaijan’s military budget can
influence the fighting efficiency of its army. Thus, according to the
Ex-Defence Minister, we should take into consideration the fact that
the navy is also included in the Armed Forces of Azerbaijan. And this
type of troops requires considerable expenditures from the military
budget. “While, it is quite obvious that the Azerbaijani navy does
not pose any danger for Armenia and Nagorno Karabakh,” Vagharshak
Haroutiunian declared. Another important factor in the issue of
impact of the military budget on the fighting efficiency is the
international commitments, in particular, the “Agreement on Limitation
of Conventional Armaments in Europe” envisaging limitations in the
main types of armaments without exceeding which, in the opinion of the
Ex-Defence Minister, Azerbaijan cannot achieve military superiority
over Armenia. “These are unsubstantiated and senseless statements. The
Armenian Armed Forces are able to defend Armenia and the Armed Forces
of Artsakh to defend Artsakh. And it is Azerbaijan’s military budget
that will not permit it to gain a victory thanks to blitzkrieg in
the coming years,” Vagharshak Haroutiunian declared.

5th UNIT OF HRAZDAN TPP SOLD TO GASPROM
Noyan Tapan
Apr 06 2006
YEREVAn, APRIL 6, NOYAN TAPAN. Under the Armenian government’s decision
of April 6, 2006, the 5th power unit of the Hrazdan Thermal Power Plant
(TPP) has been sold to Gasprom company (Russia) for 248.8 mln USD. RA
Minister of Energy Armen Movsisian told reporters on the same day that
the government took this step in order to mitigate the consequences
of the increase in the gas tariff. A. Movsisian said that in the
period from April 10, 2006 to December 31, 2008, the government
will compensate the users 188 mln dollars of the indicated sum in
the form of subsidies aimed at mitigating the tariff increase, while
the remaining sum will be transferred to the state budget. Starting
April 10, the state will subsidize 25 thousand drams out of the 90
thousand drams (200 USD) for 1,000 cubic meters for private users,
and 52.01 USD is envisaged against 146.51 USD for big consumers. The
sum will be transferred to the extrabudget account of the RA Ministry
of Defence, which, according to A. Movsisian, will allow to accelerate
the process. The Russian side intends to implement a 150-160 mln dollar
investment program at the 5th unit of Hrazdan TPP within the next two
years. Under the program, the power unit must be fully constructed,
in addition, a gas turbine with the capacity of at least 140 megawatt
has to be installed. The contract also stipulates that there will be
no change in the tariff of the gas supplied by Gasprom until 2009. The
minister said that this deal will also allow to avoid an increase in
the price of electricity. Asked if it would not be more expedient
to sell the 5th unit by holding a tender, A. Movsisian said that a
tender was announced two years ago but the offered price was much lower
than the current one. According to an agreement reached previously,
construction of the Hrazdan TPP 5th power unit was to be completed
with credit resources of the Iranian side. A. Movsisian said that it
was proposed that instead, the Iranian side should make investmenmts
in the construction of the Meghri hydropower plant on the Arax River.
From: Emil Lazarian | Ararat NewsPress

OLD DATA ON ARMENIA USED IN GLOBAL INFORMATION TECHNOLOGY REPORT 2005
Noyan Tapan
Apr 06 2006
YEREVAN, APRIL 6, NOYAN TAPAN. The Armenia-related data in the Global
Information Technology Report 2005 of the Global Economic Forum does
not reflect the current situation in the information and communication
sectors of Armenia, since the outdated information has been used. RA
Deputy Minister of Trade and Economic Development Tigran Davtian
stated this at the April 6 press conference. According to the report,
Armenia ranks 79th among 155 countries by its summary index. T. Davtian
said that particularly the index of the information and communication
technologies component affected the formation of such a low rating
of Armenia. For example, Armenia was in 103rd place by the component
of mobile phone use by individuals, but this conclusion was made
based on the 2003 data. Armenia took the last – 115th place by the
component of mobile phone use in business sector – based on the 2004
data. This information does not reflect the increase in the indices
of mobile phone use after the entry of the second operator in the
Armenian mobile phone communication market.
Besides, Armenia took 110th place by the Internet services availability
component (2004 data was used), 104th place by the new phone lines
availability component (2003 data). T. Davtian said that the low
indices of these two components are conditioned by ArmenTel’s monopoly
in the Internet access service and phone communication provision
market. It is for the first time that Armenia was included in the
Global Information Technology Report, which, in T. Davtian’s opinion,
is a positive phenomenon.
From: Emil Lazarian | Ararat NewsPress

EUROPEAN UNION – ARMENIA ACTION PLAN TO BE IMPLEMENTED FROM 2007
Noyan Tapan
Apr 06 2006
YEREVAN, APRIL 6, NOYAN TAPAN. It is envisaged that the European Union
– Armenia Action Plan of the European Neighborhood Policy will be
approved by the Armenian government and the European Commission by late
2006 and its implementation will start in 2007. RA Deputy Minister of
Trade and Economic Development Tigran Davtian stated this at the April
6 press conference. According to him, 90-95% of the issues related to
the action plan’s development were specified during the negotaiations
between the sides in early March. The remaining issues will be
clarified in working order or at the next stage of negotiations. Then
the action plan will be agreed on with the governments of 25 EU
member states. The action plan is an instrument for carrying out the
National Program for implementation of the Partnership and Cooperation
Agreement between Armenia and the EU. It is envisaged to implement this
program in the next three-four years. According to Tigran Jrbashian,
Armenian Director of the Armenian-European Policy and Legal Advice
Centre (AEPLAC), after approval of the action plan, the amount of
funds to be allocated by the EU to Armenia for budgetary assistance,
advice and formation of infrastructures will grow 4-5fold.
The current annual ammount of EU assistance to Armenia makes about
20 mln euros.
Besides, the EU will increase crediting volumes through the European
Investment Bank.

RA DEPUTY FOREIGN MINISTER HAS MEETINGS AT FOREIGN MINISTRY AND PARLIAMENT OF CZECH REPUBLIC
Noyan Tapan
Armenians Today
Apr 06 2006
PRAGUE, APRIL 6, NOYAN TAPAN – ARMENIANS TODAY. Arman Kirakosian,
the Deputy Foreign Minister of Armenia was on a working visit to the
Czech Republic on April 3-4. At the Ministry of Foreign Affairs of
the Czech Republic, Arman Kirakosian had meetings with Jaroslav Basta,
the Foreign Minister’s First Deputy of the Czech Republic and Jaromir
Plisek, the Director General of the Territorial Department. The sides
discussed issues concerning development of bilateral relations,
possibilities of completing the legal-contractual field between
Armenia and the Czech Republic, of widening commercial-economic
ties. For giving new filling to relations of the two countries,
interlocuters discussed the necessity of mutual official visits in
future. The RA Deputy Foreign Minister also had meetings with Edvard
Outrata, the Deputy Speaker of the Czech Parliament and Jan Kavan,
the Deputy Chairman of the Foreign Committee.
Issues connected with widening interparliamentary ties, visit to be
paid to Armenia by Czech parliamentaries in coming May were touched
upon during the meetings. Within the framework of his visit to the
Czech Republic, Arman Kirakosian participated in the international
conference dedicated to the Armenian Genocide. The conference where
he made a speech was organized at the Czech Senate by Senator Jaromir
Stetina and the Armenian community. Scientists and historians from
the Czech Republic, U.S., Germany, France, Slovakia made speeches
at the conference. As Noyan Tapan was informed by the RA Foreign
Ministry’s Press and Information Department, the RA Deputy Foreign
Minister had a meeting with representatives of the Armenian community
of the Czech Republic.
From: Emil Lazarian | Ararat NewsPress

15 OUT-PATIENTS’ DEPARTMENT TO BE RESTORED AND 5 ONES TO BE BUILT THIS YEAR BY WB CREDIT PROGRAM
Noyan Tapan
Apr 06 2006
YEREVAN, APRIL 6, NOYAN TAPAN. About 8.5 mln dollars health care
programs are envisaged to implement this year within the framework
of about 19 mln dollars credit program “Modernization of Health Care
System of Armenia” of the World Bank. Sergey Khachatrian, the Director
of the “Health Care PIA” state institution of the RA Ministry of Health
Care informed the Noyan Tapan correspondent about this. Particularly,
15 out-patients’ departments of marzes will be restored, and 5 ones
will be built in the marzes of Ararat, Gegharkunik, Armavir, Tavush and
Kotayk. Besides, 150 out-patients’ departments of rural settlements
will get medical equipment, furniture and accessories. S.Khachatrian
mentioned that within the framework of the program, the Yerevan Surb
Astvatsamayr Medical Center and the Clinical Hospital of the Yerevan
State Medical University after Mkhitar Heratsi will be restored
this year. It’s envisaged to implement a program of supporting
those medical institutions with modern medical equipment as well,
after finishing the restoration works. Besides, programs directed to
formation of the family doctor’s insitute will also be implemented,
including the process of preparing family doctors will continue, the
second educational center of Family Medicine, etc. will be created. It
was also mentioned that 1.2 mln dollars were spent this year within
the framework of the credit program.

NUMBER OF PEOPLE RECEIVING FAMILY BENEFITS INCREASES IN GEGHARKUNIK
Noyan Tapan
Apr 06 2006
GAVAR, APRIL 6, NOYAN TAPAN. The number of people receiving
family benefits has increased in the first quarter of 2006 in the
Gegharkunik region. Thus, in 2004 the number of beneficiaries amounted
to 11722, in 2005 11547, while in the first quarter of 2006 12013
people. At the Health Protection and Social Security Department of
Gegharkunik Administration they condition the increase of the number
of beneficiaries by the circumstance that the government reduced the
lower brink of poverty estimation. In accordance with the regions’
districts, the number of beneficiaries in the first quarter of 2006
was distributed in the following way: Martuni 4599, Gavar 1824,
Sevan 1805, Vardenis 2385 and Chambarak 1400.
From: Emil Lazarian | Ararat NewsPress