ARMENIA HAS BEEN ONE OF THE LEADING PERFORMERS IN EURASIA IN ECONOMIC
AND POLITICAL REFORM, SAYS STATE DEPARTMENT

YEREVAN, FEBRUARY 2. ARMINFO. Armenia has been one of the leading
performers in Eurasia in economic and political reform, which is why
it was only one of two countries in the region deemed eligible this
year to receive grants from the Millennium Challenge Account, says
State Department fact sheet U.S. Assistance to Armenia — Fiscal Year
2004 (October 1, 2003-September 30, 2004).

<While economic growth has been strong, it has yet to provide
significant benefit to the vast majority of the population. As such,
U.S. assistance focuses on the growing small- and medium-scale
enterprise sector. Our democracy, economic, and law enforcement
programs will help to strengthen the democratic structures and
foundations in Armenia, as well as support regional stability and
security.

The estimated $89.7 million budgeted by all U.S. Government agencies
for assistance programs in Armenia in fiscal year 2004 is allocated
roughly as follows based on information available as of the date of
this fact sheet: Democracy Programs $13.0 million Economic

Social Reform $50.2 million Security

Law Enforcement $15.4 million Humanitarian Assistance $6.3 million
Cross Sectoral Initiatives $4.8 million. >

Sean Connery offered role in Kurdish film

Wednesday, February 2, 2005

FEATURE

The unforgettable spy of the James Bond series, Sean Connery, has been
offered a role in a movie to be shot in Turkey that tells the story of
the Brukan clan

ANKARA ` Turkish Daily News

  The story of the Brukan clan, comprising 500,000 members in 117
villages of Van, will be retold in a movie titled ?Brukan: Exodus.?
The film, which depicts the migration of the clan from Diyarbakır’s
KaracadagË` to the Caucasus and Iran in 1609, will be produced by
Gültekin Movie Productions and directed by Engin Alap.

  Producer Kasım Gültekin, director Alap and General Coordinator
Sema Efe visited Van’s DogË`angün village to scout out places for
construction of the film set. The crew said they would start
shooting on March 15.

  

Sean Connery as S¸emdin Bey?

  Alap also noted that they had offered a starring role to Sean
Connery, the unforgettable spy of the famous James Bond. Alap said
they offered the role to Connery through an agency and that the famous
actor was warm to the offer. If he accepts the role, he will bring
the leader of the clan, S¸emdin Bey, to life.

  Alap emphasized that the film would be shot in Kurdish and
dubbed in English, saying, ?This film will reflect the culture of a
tribe.?

  Gültekin said the soundtrack would include Kurdish songs and
that they would try to promote their local music to the world by
means of this film.

  Gültekin, who says 2 billion euros are in place for the making
of the film, also said: ?This amount will be increased to 3 million
along the way. We don’t have any economic concerns about this
job. Three thousand character actors will appear in the film, and
it will be an international movie.?

© 2004 Dogan Daily News Inc. | Ri and Permissions

AZERBAIJANI DIASPORA OF SWEDEN DISCUSS KARABAKH PROBLEM WITH SWEDISH
FOREIGN MINISTER AND SPECIAL REPRESENTATIVE OF OSCE PA

YEREVAN, FEBRUARY 2. ARMINFO. OSCE calls Azerbaijan and Armenia for
maximum efforts and mutual compromise in settlement of Karabakh
conflict. According to Baku Mass Media, Special Representative of OSCE
Parliamentary Assembly on Nagorny Karabakh conflict Goran Lenmarker
made this statement at a meeting with Azerbaijani Diaspora in Sweden.

<We are ready to render support for more successful continuation of
dialogues and in an enlarged format, > he said. Lenmarker is of the
opinion that prevention of the conflict depends only on the attitude
of Azerbaijan and Armenia to this issue, while OSCE can be just a
perfect mediator. He also called the conflicting parties for
establishment of mutual trust at the level of Diasporas.

In his turn, Head of the Azerbaijani Federation – Sweden organization
(AFS) Namaf Sababi stated that the meeting had been rather
rational. He said that < the OSCE Rapporteur very diplomatically
demonstrated the position of support to Azerbaijanis. > Sababi said
that Lenmarker had not touched upon the report on Karabakh, but
promised to solve the problem within the nearest future. The
rapporteur pinned great hopes with the dialogue of the Azerbaijani and
Armenian Foreign ministers to be held on March 2 in Prague. The
Karabakh issue was discussed at the meeting of Azerbaijanis of Sweden
and Foreign Minister of that country as well.

SEVERAL HUNDREDS OF CARRIAGES STILL ON GEORGIAN-AZERBAIJANI BOUNDARY

TBILISI, FEBRUARY 2. ARMINFO-BLACK SEA PRESS. Despite the statements
of a number of Georgian state structures that the problem with
blockade of carriages in the Georgian-Azerbaijani was solved long ago,
Head of the Union of Producers, Importers and Consumers of Oil
Products of Georgia Vano Mtvralashvili says that hundreds of carriages
are still on the boundary. In particular, on Jan 30 some 500 carriages
with wheat, liquefied gas and diesel were blocked on the boundary.

He says that the carriages were to be sent back to the point of
dispatch, but later another decision was made to leave them on the
boundary until the investigation carried out by the Azerbaijani party
is over. As a result, importers suffer serious financial losses, as
they pay for lease of carriages daily. After all, the cargoes of
several of them are blocked on the boundary for already two
months. Mtvralashvili says that the problem can be finally solved
through negotiations at a high political level with participation of
Azerbaijani President Ilham Aliyev.

Since the beginning of November 2004, the Azerbaijani party started
detaining the trains from Azerbaijan to Georgia on the station
Beyuk-Kyasik being concerned for the fact that a number of cargoes
could occur in Armenia. It would contradict to the international
agreement between Azerbaijan and Georgia in the summer of 2004 banning
transit of cargoes of a third country to the prejudice of Azerbaijan
and Georgia. In November only the cargoes of Azerbaijani production,
including crude oil, petrol and diesel arrived in Georgia without
limitations. The officers of the Azerbaijani Customs Committee began
examining the documents related to the destination of each
carriage. In case of any doubts related to the destination, the
Azerbaijani party carried out investigation.

From: Emil Lazarian | Ararat NewsPress

HEAD OF CENTRAL BANK OF ARMENIA ON MAIN TASKS AND OBJECTS OF
DEVELOPMENT OF BANKING SYSTEM

YEREVAN, FEBRUARY 2. ARMINFO. The main reforms in the banking system
of Armenia, being implemented during the last 5 years, were aimed at
implementation of 4 main tasks: to ensure growth and competitiveness
of banks, support for their liquidity and stability, perfection of the
mechanisms of management of risks, increase of the quality of produces
and services. Head of the Central Bank of Armenia Tigran Sargsian
stated during the 15th Conference of regional Group of Basle Committee
for Banking Supervision of the states of TransCaucasus, Central Asia
and Russia.

According to the main banker, high level of competition in the banking
system is seen during the last 2-3 years, especially in the market of
crediting and in particular in the segment of consumer crediting. Only
during 2004 the growth level of the portfolio of the consumer credits
in the banking system of the country increased by 60%. This process
accompanied by quite high rates of capitalization and general growth
of provision of crediting in the economy, which increased by 29% (64.7
bln drams) and by 37% (139.7 bln drams) respectively. The ration of
the assets of the banking system (363.6 bln drams) to the GDP makes up
19%.

Tigran Sargsian stressed that qualitative changes took place in the
sphere of liquidity control during the last years. Today the liquidity
level of the commercial banks is rather high (20-25%) and there are
serious problems with management of liquid assets, as the real sector
of the economy is not ready <for example> for large volume of credit
resources. He stressed that the Central Bank has introduced quite
effective methods of risk management. He said that the CB Board has
made a conceptual decision on gradual switchover to new stricter
standards of banking supervision, based on the principles
“Basle-2”. He mentioned that one should not blame only the real sector
for the low level of mediation. The real sector is not regulated
enough and is working in the shadow. The problem is also in the
spectrum of products and services, which the banking system may offer.

First of all, the problem often concerns the insufficient level of
management in the banks. “We have elaborated indices which allow to
estimate impartially the fact how the commercial banks manage this
problem. The necessity of introduction of rules of corporative
management is considered as a strategic direction”, Tigran Sargsian
stressed.

DAVID ATKINSON’S NAME WILL SOON BE FORGOTTEN

A1+
31-01-2005

David Atkinson is from now on an average delegate in PACE without any
other advantages. That is to say, he is on the same conditions with
the other 320 delegates, so the interview he gave to the BBC about the
Karabakh conflict is the opinion of an ordinary delegate.

`They could ask the opinion of the other delegates with the same
success’, says Tigran Torosyan. By the way, in 4 days parliamentary
elections will beheld in Great Britain, in which, according to Tigran
Torosyan, David Atkinson will not take part.

After Atkinson’s report and the adoption of the resolution Armenia is
entering a new phase. A new reporter will be appointed for the region
and anew report will be made. Tigran Torosyan expects that the new
Reporter will represent matters clearly. `I’m sure the situation that
was created with Atkinson will no more be repeated’.

Tigran Torosyan is also convinced that as time goes on, the society
will evaluate the new PACE resolution properly. By the way, the
National Assembly deputy principle foresees that in PACE the future of
the Azerbaijanis is much graver: `Either they will be a country who
has not carried out his responsibilities, or they will have to change
their point of view’.

As for those political figures who still think that the resolution
adopted in PACE will have negative impact on Armenia, Tigran Torosyan
invites them to a discussion. During the discussion he is going to
consider the PACE report point by point.

From: Emil Lazarian | Ararat NewsPress

Azeri paper says democracy is way to get breakaway area back amid war calls

Azadliq, Baku
2 Feb 05

Text of unattributed report by Azerbaijani newspaper Azadliq on 2
February headlined “‘You can have Karabakh back only in one way: it is
democracy'” and subheaded “The co-chairman of the OSCE Minsk Group,
Bernard Fassier, put pressure on I. Aliyev”

The new French co-chairman of the OSCE Minsk Group, Bernard Fassier,
met Azerbaijani President Ilham Aliyev during his diplomatic visit to
Baku last week. The French visitor said that the calls for renewed
war in Azerbaijan are not taken seriously in Europe. Fassier said:
“They believe in Europe that such calls may be aimed at covering up
the wish for democracy of the Azerbaijani people and it’s naive to
hope that Nagornyy Karabakh can be liberated in such a way.”

Fassier added that under the circumstances the renewal of military
hostilities may be perceived across the world “as the fight for
influence between the two authoritarian regimes and both countries may
face serious sanctions”.

Fassier said: “I would like to say that this is the position not only
of France, but also of the EU.”

At the same time, other aspects of the issue are also interesting.
First, Azerbaijan has been in such a poor situation that a co-chairman
of the commission established to resolve the conflict dares to issue
an ultimatum to the Azerbaijani government.

Second, an explicit message has been sent to the Azerbaijani
government and the public that the Nagornyy Karabakh conflict can be
resolved in Azerbaijan’s favour only after it introduces democratic
reforms.

Third, even in Europe they know that Azerbaijan’s propaganda for a
solution to the Nagornyy Karabakh conflict is insincere. They can well
see that the mafia-type government of Azerbaijan is anyway not in a
belligerent mood and all such calls are just a fake.

Fourth, all the EU member states advocate a solution to the Karabakh
problem in the interests of a country which shares EU
values. Undoubtedly, if there is a democratic regime in Azerbaijan,
any possible solution to this problem in Azerbaijan’s favour will
satisfy the whole democratic world. However, if democratic changes
were to occur in Armenia before Azerbaijan, the Nagornyy Karabakh
problem may be resolved in Armenia’s favour once and for all. The fact
is that any democratic changes in Azerbaijan are not about the desire
of any political force for power, but about the country’s territorial
integrity.

Finally, it should also be noted that a lot of money is required to
wage a war. The government of Azerbaijan, where 60 per cent of the
economy works for the “black market”, does not intend to pursue a
war. The slogan “everything for the motherland” usually works in
countries at war, while in Azerbaijan there is unlikely to be any
alternative to the slogan “everything for the governing
clan”. Moreover, since the Azerbaijani military industrial complex is
also involved in corruption, only an idiot can think of fighting with
the resources at its disposal.

Unified financial supervisory system to be set up in Armenia

Mediamax news agency
2 Feb 05

YEREVAN

A conference of the regional group of the Basel Committee on Banking
Supervision of Central Asian and South Caucasus countries and Russia
opened in Yerevan today.

The chairman of the regional group, Juma Eshov, noted that
representatives of countries with similar problems in their banking
systems were taking part in the conference, Mediamax news agency
reports.

He stressed that the problem of money laundering was the conference’s
main theme.

Armenian Central Bank Chairman Tigran Sarkisyan gave a presentation to
the conference participants on the situation in the Armenian banking
sector. He said that the assets ratio of the banking system to GDP was
19 per cent and that loans accounted for 7 per cent. The central bank
carries out a policy of strict supervision which ensures the
transparency and reliability of banks, Tigran Sarkisyan said. In
addition, he noted that a similar policy was increasing investors’
interest in Armenian commercial banks. Today, foreign capital accounts
for 54 per cent of capital in the Armenian banking sector.

Tigran Sarkisyan said that a unified financial supervisory system
would be established in Armenia in the near future, including, in
particular, supervisory bodies for insurance companies, the pension
fund and the securities commission.

RUSSIAN FOREIGN MINISTER EXPRESSES CAREFUL OPTIMISM IN CONNECTION WITH
RESOLUTION OF KARABAKH CONFLICT

YEREVAN, FEBRUARY 2. ARMINFO. Russian Foreign Minister Sergey Lavrov
considers that there are all the grounds for a careful optimism in
connection with settlement of the Karabakh conflict, especially taking
into account the reactivated bilateral meetings of the Armenian and
Azerbaijani foreign ministers. Minister Lavrov made this statement
talking to journalists Tuesday on his arrival in Baku.

<We shall contribute to the parties reaching an agreement, > Lavrov
said. <We proceed from the fact that the mediators operating within
the framework of OSCE Minsk Group are in constant contact with the
parties, Azerbaijan and Armenia,> he added. The minister noted that he
intended to discuss the whole complex of bilateral relations in Baku
and the international agenda, in particular “the reforms at CIS.”

RUSSIAN FM: “WE SHOULD NOT OPPOSE PRINCIPLES OF TERRITORIAL INTEGRITY
OR RIGHT OF NATIONS TO SELF-DETERMINATION TO EACH OTHER

YEREVAN, FEBRUARY 2. ARMINFO-TURAN: Perspectives of development of
Azerbaijani-Russian relationships have been discussed by the two
countries’ Foreign Ministers – Elmar Mamedyarov and Sergei Lavrov –
today in Baku.

Mamedyarov told journalists after the meeting that during the talks
they have exchanged opinions on a wide range of questions. Mamedyarov
said that in the past years relationships between the two countries
“have been rapidly developing” and reached a level of strategic
partnership.

Mamedyarov noted that “there are no problems in the
Azerbaijani-Russian relationships, there are questions, which are
resolved through the dialogue.”

Lavrov said he is satisfied with results of the meeting and added that
“Russia highly appreciates strategic partnership with Azerbaijan.”

On February 16 in Moscow the two countries’ presidents announced this
year a “Year of Azerbaijan in Russia.” “This is a very important
event, considering several centuries old history of our friendship and
bilateral relationships,” said Lavrov. The plan of programs within the
framework of Year of Azerbaijan in Russia reflects “interests of
Azerbaijani and Russian people” in development of bilateral ties in
field of science, education, culture and etc.

In addition, Lavrov said development of trade-economic relationships
and growth of trade turnover has been discussed during the
meeting. The perspectives of further cooperation in field of energy
“considering possibilities that Russia and Azerbaijan will open for
themselves from cooperation with other countries, including transport
corridor North-South” has been also discussed, said Lavrov.

With regard to the Caspian problem, Lavrov said “the necessity to
resolve all the remaining questions within the framework of five
Caspian basin states has been confirmed.”

The side shave also touched the issues of international policy and
exchanged opinions on reforms in UN, OSCE and CIS. Lavrov said that
the sides have agreed to work together to settle these issues.

Karabakh conflict settlement was also a subject of
discussion. Mamedyarov added that Russia backs the approaches
discussed by Azerbaijan and Armenia within the framework of “Prague
process.” Lavrov said that Russia together with other OSCE Minsk Group
co- chairs “helps Azerbaijani and Armenian sides” and hopes for
achievement of agreement.

Asked by journalists, Lavrov said that he disagrees with the opinion
of the U.S. Department of State that Russia is not actively engaged in
the settlement of conflicts on the post-Soviet space.

He said during the past 2-3 months Russian OSCE MG co-chairman
together with his counterparts from U.S. and France has been working
hard to achieve the conflict settlement.

In addition, Russia also takes effort to settle conflicts in Abkhazia
and South Ossetia as a member of the friendship group of UN General
Secretary and Joint Control Commission. With regard to situation in
Transdniestr, Lavrov supported opinion of Moldova President Voronin
that signing of the Stability Pact would create additional security
guarantees.

Asked if principle of territorial integrity or right of nations to
self-determination is a priority for Russia, Lavrov answered: “We
should not oppose these two principles to each other, they both have
been fixed in the UN charter and must not be applied to the Gdetriment
of each other.”

Lavrov said problems of Collective Security Treaty have not been
discussed at the meeting with Mamedyarov, because Azerbaijan is not a
member of this organization. “We have discussed activities of
integration groups on the CIS space, in which Azerbaijan and Russia
participate,” said Lavrov.

Asked about Russia’s attitude towards Azerbaijan’s cooperation with
NATO, Lavrov said: “Azerbaijan is a sovereign state and as a sovereign
state it chooses foreign political partners for itself. We respect
this choice. Russia also has established relationships with NATO and
this is our sovereign choice.”