BANKING SYSTEM OF ARMENIA AMONG MOST RELIABLE ONES IN CIS AREA: STANDARD & POOR’S
YEREVAN, DECEMBER 16. ARMINFO. The Banking system of Armenia is
considered one of the most reliable ones in the CIS area, say
specialists of the international agency Standard Poor’s.
According to the rating, as to the total system regulatory capital
as a % of risk weighted assets (BIS ratio), the banking system of
Armenia showed 34% in late 2003, yielding only to Tajikistan (44.7%)
and Kyrghyzstan (34%). Total banking system regulatory capital of the
baking system of Armenia in late 2003 was $79 mln (20 banks) leaving
behind Kyrghyzstan ($49 mln – 20 banks) and Tajikistan ($35 mln – 14
banks). At the end of 2003 Armenia ranked the first as to the capital
share controlled by foreign capital, including other CIS investors –
47%, leaving behind Kyrgyzstan – 29% amd Tajikistan 26.6%. As to the
total banking system assets, the banking system of Armenia showed
$498 mln, then goes Kyrgyzstan and Tajikistan, $258 mln and $147 mln,
respectively.
The specialists of the agency say that over the past decade, the number
of banks in most CIS countries has decreased significantly as a result
of bank failures, mergers, and license withdrawals. Restructuring
measures, as well as increases in minimum bank capital requirements
and capital adequacy ratios, have been effective instruments to
fortify banking systems and encourage consolidation. This process
is continuing today. For example, Armenia is increasing the minimum
required capital level to $5 million from the current $2 million,
effective July 1, 2005. This is largely above a minimum capital level
of ?1 million required in Russia, but still below a limit of $7 million
required in Kazakhstan. In Russia, the number of banks dropped from
2,300 in 1995, to nearly 1,300 banks today. Azerbaijan and Georgia
have seen a decline to about 50 banks in each country from almost
250 in each. Since 1994 in Kazakhstan, the number of banks fell to 36
from more than 180. Despite the growing divergence of policies and in
the performance of the CIS banking systems, one thing they share is
exposure to a variety of common risks. In addition to factors already
mentioned, such as shadowy economies, they include:
High economic and industry risks;
Volatility to economic cycles;
Low population wealth and high income inequalities;
Underdeveloped regulatory and legal systems;
Varying accounting practices; and
Limited confidence in the banking system.
In addition, the financial profiles of banks are characterized by weak
capital; lack of core deposits; weak credit culture, vulnerability
to asset quality risks; and low operating efficiency. Liquidity and
financial flexibility of CIS banks remain limited.
The population remains suspicious of banks and unwilling to trust
them with its savings Responding to the lack of confidence in their
banking systems, some CIS countries have sought to introduce deposit
insurance schemes. At the end of 1990s, Kazakhstan and Ukraine set up
deposit insurance systems, followed more recently by Moldova. In July
2004, amid the turmoil in the banking sector, the Russian government
adopted a law guaranteeing retail deposits in banks not admitted to
the retail-deposit insurance system introduced in December 2003 (whose
selection process has yet not been completed). Armenia set up a deposit
insurance system in 2003, which should start operating in 2005. The
Kyrgyz Republic is only preparing deposit insurance legislation.
The CIS banking systems mirror many of the high concentration
problems of their economies, particularly regarding the high
dependence on commodities in exports: oil for Russia and Kazakhstan,
gas for Turkmenistan, gold for the Kyrgyz Republic, aluminum for
Tajikistan, and diamond polishing for Armenia. With limited industry
diversification and natural-resource dependent and agriculturally
dominant economies, the CIS economies are fairly correlated in their
risks and economic cyclicality. Due to growing regional cooperation
and trade, the growth of many smaller CIS countries depends partly
on the performance of the large economies in the region–Russia,
Kazakhstan, and Ukraine.
Many privately owned CIS banks are closely connected to industrial
and trade groups. Beneficial owners, often hiding behind numerous
nominee or operating companies, are not publicly disclosed. This
raises critical information and corporate governance risks, which could
lead to understated related-party exposures. There is also a lack of
certainty about the owners’ ability and willingness to inject fresh
capital into the banks. Ultimate ownership and interrelationships
between borrowers and industries are difficult to discern. Opaque
ownership structures favor related party lending, with its attendant
risks. This results, in part, from the lack of enforcement and
monitoring of “fit and proper” criteria, and inhibits the emergence
of a market for corporate control. The lack of such a market is one
key reason for the lack of market-driven bank reorganizations in the
CIS countries, including the entry of foreign banks, mergers, and
acquisitions. The CIS banking systems have combined assets of around
$240 billion, which is less than half the size of Dresdner Bank AG
(A/Negative/A-1) or Barclays Bank PLC (AA/Stable/A-1+) and a third
of the size of ABN AMRO Bank N.V. (AA-/Stable/A-1+).

PRESS RELEASE
Chess Academy of Armenia
Yerevan, Armenia
Contact: Aram Hajian
Tel: (3741) 52-02-46
Fax: (3741) 52-02-46
E-mail: [email protected]
Web:
Re: The Tigran Petrosian Memorial Internet Chess Tournament
In homage to one of the greatest chess players of all time, the Chess
Academy of Armenia is proud to hold a unique tournament honoring
Armenia’s favorite son. The former world champion, who passed away in
1984, would have been 75 this year and most probably quite impressed
with Armenia’s chess legacy he helped initiate and encourage.
The Tigran Petrosian Memorial Internet Tournament, the last in
a series of tournaments dedicated to the memory of the 9th World
Champion, includes a novel twist on the conventional tournament format
customarily seen. The organizers have decided to host a tournament
before the largest public audience possible, with the games themselves
being played online. The national teams of France, China, Russia,
and host country Armenia will square off via the internet, with
each four-player team locking horns in a six round event. Tune in
to for live games, commentary, and news about
this exciting event. Total prize fund: $55,000. Games begin at
12:00 noon (Paris time), 14:00 (St. Petersburg), 15:00 (Yerevan),
and 19:00 (Beijing) daily from December 18-23, 2004.
Sincerely, the Chess Academy of Armenia

US STATE SECRETARY SPOKESMAN ON ARMENIAN GENOCIDE
WASHINGTON, DECEMBER 16. ARMINFO. We have acknowledged the terrible
tragedy that befell the Armenian community in Anatolia in the last
years of the Ottoman Empire. We’ve been encouraging scholarly and
civil society diplomatic discussions about those events, and we’ve
encouraged economic and political dialogue between Armenia and Turkey
on the subject, says US state secretary spokesman Richard Boucher.
I think the President issues a statement almost every year. The
reference I’d give you for this sort of formal policy is the April
24th, 2003, statement that President Bush put out. I would note
we’re following events in regard to the European Union and Turkey
very closely. This has been a matter of some interest to us.

EX IRANIAN PRESIDENT CALLS FOR FURTHER EXPANSION OF TEHRAN-YEREVAN
RELATIONS IN ALL FIELDS
TEHRAN, DECEMBER 16. ARMINFO. Chairman of the Expediency Council Akbar
Hashemi Rafsanjani here on Tuesday called for further expansion of
Tehran-Yerevan relations in all fields. In a meeting with Armenian
Ambassador to Tehran Gegham Garibjanian he called for implementation
of the agreements reached between the two sides.
Stressing the importance of the project to transfer the Iranian gas
to Armenia, Rafsanjani said that by putting into operation the project
Iran will gain access to an appropriate market. Calling for settlement
of the existing dispute between Azerbaijan and Armenia, he expressed
the hope that peace and durable stability will be established in the
entire region through all-out cooperation among all regional states.
Appreciating Iran’s efforts in settlement of the regional crises,
he said a powerful and developed Iran is to benefit the entire
region. The Armenian ambassador to Tehran further called for promotion
of Tehran-Yerevan bilateral relations.

ARF BUREAU REPRESENTATIVE HOLDS POLITICAL MEETINGS WITH CHAIRMEN OF EDEK AND AKEL PARTIES IN CYPRUS
NICOSIA, December 16 (Noyan Tapan). December 14, Armenian Revolutionary
Federation (ARF) Bureau representative Hrant Margarian held several
meetings with the leaders of Cyprus political parties, ARF press
service reported.
The ARF delegation, led by Margarian, met with Cyprus Socialist
Democratic Party (EDEK) chairman Yanakis Omiru, who, underscoring the
centuries-long friendship between the Armenians and Greeks, reminded
them of the common enemy, Turkey. He added both Armenians and Greeks
are confident that Turkey does not deserve an EU membership unless
it undertakes certain pre-conditions, including the recognition of
the Republic of Cyprus, and admitting to the Armenian Genocide.
Hrant Margarian pointed to the close ideological ties between the
ARF and EDEK, and noted that the meeting is aimed at conveying
the ARF’s concerns ahead of the December 17 summit over Turkey’s
EU bid. Margarian said that Turkey should not be admitted to the EU
until the Cyprus issue and the issues of the Armenian Genocide and
human rights violations are not settled, reminding that this position
of the ARF is shared by most Europeans.
He added that Cyprus is expected to pose a strong position against
Turkey, and that Cyprus would also raise the Armenian Genocide issue
as Armenians raise the Cyprus issue in the international arena. If
Cyprus says “no” on December 17, many nations, including Armenians,
would welcome such stance. Omiru, in turn, said that his party is
for using the right to veto by Cyrus in case Turkey fails to meet
its requirements.
Hrant Margarian was also received by Dimitris Christofias, president
of the Cyprus parliament and secretary general of the Communist
Party, AKEL.
At the meeting, Margarian pointed to the ARF position and the Armenians
expect from Cyprus, noting that Turkey, by the U.S. blessing and
encouragement, would try to derail the European values and justice,
peace and tolerance systems. He added that the struggle should continue
and a “non” by Cyprus has a unique weight in political developments.
In response, Christofias noted that his heart “demands a veto,”
but questions like why and how the European powers dropped their
objections, raise. He said Turkey is encouraged by the U.S. and
Britain. He also said that President Papadopulos is to make his
decision at the last minute, and whatever the decision, his party
would support it.

MAIN ACHIEVEMENT OF YEAR 2004 IS MAINTENANCE OF POLITICAL STABILITY IN
COUNTRY: SECRETARY OF ARFD PARLIAMENTARY FACTION
YEREVAN, DECEMBER 16. ARMINFO. The main achievement of the year 2004
is maintenance of political stability in the country. After heavy
years of Karabakh war, one more peaceful year was of great importance
for our people,> says Secretary of the Parliamentary faction of
ARF Dashnaktsutyun party included in the ruling coalition, Hrayr
Karapetyan, at a meeting with journalists at “Pakagits” Club, Thursday.
As regards the opposition rallies and the events of April 12-13 night
when the rally in Baghramyan avenue was dispersed, he says that it
was not a display of political crisis in the country. Karapetyan says.
He says that there are all the preconditions for progressive
development of Armenia next year as well. One should not expect
destabilization either. The ruling coalition, including ARFD,
pays a great attention to implementation of social programs. In
2005 wages of teachers, militaries will be considerably risen. The
same concerns pensions. Already in early 2006, the basic wages of
government officials will considerably rise, says ARFD representative.
He also pointed out the importance of a number of laws adopted in
2004, in particular, the amendments to the laws on military duty, on
police, struggle against terrorism, as well as the package of social
laws. He also emphasized the necessity of adopting the Law on lobbying
activity advanced by him and preliminary approved by the president,
in spite of counteraction by a number of governmental circles.

ARMENIA’S SECURITY SERVICES FAILED TO PREVENT OCT 27 TERRORIST ACT BECAUSE OF
LACK OF INFORMATION
YEREVAN, DECEMBER 16. ARMINFO. Armenia’s security services failed
to prevent the Oct 27 1999 terrorist act in the Armenian parliament
simply because they had no information about it, the newly appointed
director of the national security service of Armenia, Maj Gen Gorik
Hakopyan says in an interview to Golos Armenii.
One should not forget the fact that the ringleader of the terrorists
Nairi Hunanyan had frequented the parliament and was personally
acquainted with some MPs. The special services of even stronger
countries sometimes fail to get warning information in time. Some
“experts” are now trying to evaluate and criticize the actions of
Armenia’s special services in Oct 1999. “I am saying with full
responsibility that our conscience is clear before the coming
generations,” says Hakopyan.
He notes that were it not for the iron will of Armenia’s President
Robert Kocharyan the situation could have led to some unpredictable
consequences. The special services acted then like in the rear of
an enemy. They were very much worried lest the terrorist might make
ultimatums and the death roll might have been longer. “We did our
best, we did everything any special services would normally do in
a situation like that.” “Our compatriots should understand that at
hard times the interests of the state are above all,” says Hakopyan.

Ian Hill: Man about Town
Printers launch their seasonal workshops
Belfast Telegraph , UK
Dec 16 2004
Maybe you’d remember making prints from a cut potato in primary
school? Or from a square of gouged lino? But the craft of making
original prints gets a little more complicated – and a brave bit more
artistic – than that when you get to the work of the skilled
professionals from the Belfast Print Workshop.
Their Christmas exhibitions are now showing in the Waterfront Hall
and the Workshop’s atmospheric base in Cotton Court. That’s at No 30
Waring Street, opposite the onetime Ulster Bank.
At the Waterfront launch, BPW’s new chairman, architect Colin Maxwell
revealed that he’ll be working both sides of the street. For he’s
restoration specialists Consarc’s man charged with fashioning a
boutique hotel out of James Hamilton’s 1860 Italiante banking hall
for pub entrepreneur Bill Wolsley.
BPW manager Struan Hamilton, who was present with his spouse Lisa,
deftly explained the different techniques of printmaking: reliefs
from linocuts; lines scratched into metal etched with acids; the
greased limestones of lithography. Trustee James ‘Jim’ Allen, there
with his accomplished printmaking wife Sophie Aghajanian and fellow
artist-trustee Raymond Henshaw, recalled the 17 years since he and
Sophie first moved to live at the gatehouse of the Arts Council’s
Riddell Hall when he set up the whole operation as Printmaker in
Residence in the Big House up the drive.
James Millar, whose sensuous black and white mythical nudes form the
basis of many a collection, made a number of points.
Firstly, that each print is an original, that none are
photo-mechanical reproductions and many cost under £200. That’s a
fraction of what an oil painting by the same artist would sell for.
He was hinting, obviously, that here are the perfect Christmas or New
Year presents.
Another seasonal gift, added BPW director Paula Gallagher, would be a
voucher for the artistically minded love of your life to sign up to
one of the organisation’s printmaking courses. They run during
weekday evenings or weekend mornings in both January and February
2005, for just £75.
Then a scan of the gallery revealed a veritable United Nations of
printmakers. Sophie, a general’s daughter, is of Armenian descent.
Anushiya Sundaralingam comes from Sri Lanka – Ceylon to older
readers. Talking to complementary therapist Amanda Brady,
photographer Bill Smyth and I learnt that her printmaking
psychotherapist friend Kristine Hanish is a Latvian and that etcher
Kinga Pers is Polish. Artist Valerie Giannandrea’s genes are Italian
and Homeria Kiani Rad’s Iranian.
Amongst the hacks present several looked in vain for a print showing
No 30 Waring Street as they remember it, when it was Benny Conlon’s
A1 Bar. A stranger, who didn’t want to be identified, would have
liked something harking back to even earlier. His search was for a
portrait of a woman who lived on that same spot in the late 17th
century. She was Jane Waring, also known as ‘Varina’, daughter to the
merchant tanner who lent the street his name, and the girl who
refused Dean Swift’s offer of marriage when the esteemed author of
Gulliver’s Travels was but Vicar of Kilroot in Co Antrim.
• till December 31,
–Boundary_(ID_i6lsr6eYUMfMVEhSoMW9Jg)–
From: Emil Lazarian | Ararat NewsPress

ARMENIAN GENOCIDE DOCUMENTATION PRESENTED TO U.S. CONGRESSMEN WITH
SUPPORT OF CONGRESSIONAL CAUCUS ON ARMENIAN ISSUES
WASHINGTON, December 16 (Noyan Tapan). In anticipation of the
commemoration of the 90th anniversary of the Armenian Genocide and
the consideration of the Genocide Resolution by the incoming 109th
Congress, the Gomidas Institute has donated 500 copies of its latest
publication, United States Official Records on the Armenian Genocide
1915-17, to members of the U.S. Senate and House of Representatives.
This initiative was taken at the request of a generous benefactor,
and made possible through the support of the Congressional Caucus
on Armenian Issues, as well as the Armenian National Committee in
Washington D.C.
“With the publication of this volume, the Gomidas Institute has, once
again, provided a vital resource for all those working to overcome the
Turkish government’s shameful campaign to pressure the United States
into complicity in Turkey’s denial of the Armenian Genocide,” said ANCA
Executive Director Aram Hamparian. “The comprehensive and compelling
evidence assembled in this book establishes the U.S. response to
the Armenian Genocide as a critical milestone in American history –
one that Turkey should not be allowed to erase.”
United States Official Records on the Armenian Genocide 1915-17
was published by the Gomidas Institute and is the latest book in a
growing body of vital sources on the Armenian Genocide. The Institute
is at the cutting edge of such work, which is utilized by students,
scholars and journalists today.
This book will soon be joined by its sister publication, United States
Diplomacy on the Bosphorus: The Diaries of Ambassador Morgenthau
1913-1916. These two works are an invaluable record of the Armenian
Genocide in all its complexities, and they show how much the United
States government knew about the Armenian Genocide as early as the
summer of 1915.

US READY TO CANCEL SECTION 907 OF FREEDOM SUPPORT ACT IN CASE OF
KARABAKH CONFLICT SETTLEMENT: US AMBASSADOR TO BAKU
YEREVAN, DECEMBER 16. ARMINFO. If the Karabakh conflict is fully
resolved the US will cancel Section 907 of Freedom Support Act
banning US governmental aiding of Azerbaijan, says U Ambassador to
Baku Rino Harnish.
He says that the US welcomes the continuation of the talks between
the Azeri and Armenian FMs and hopes that this process will result
in a long term and fair settlement. Every year Pres.Bush suggests
cancelling the section. This year too he has proposed that considering
Azerbaijan’s active involvement in the international anti-terror
coalition that country get $8 mln aid. But Congress has given equal $2
mln to Azerbaijan and Armenia. Harnish notes that the law on foreign
allocations is not the only way to aid Azerbaijan.