ARKA News Agency
Feb 18 2005

Karen Nazaryan appointed to post of Armenian Ambassador to Iran

Ashot Kocharyan appointed to post of Armenian Ambassador to India

Inecobank starts issuing co-brand cards

Regular session of the Armenia-EU Committee on cooperation to be held
in Yerevan in June 2005

Armenian delegation to leave for Greece to participate in the meeting
of ministers of pabsec states-members

A criminal falsifying payment cards is arrested in Yerevan

Two thirds of bank deposits of Armenia account for deposits in USD

A Board of Trustees of Deposits Insurance Fund is formed in Armenia

Armenia planning to complete negotiations over its membership in
International Exhibition Organization

In 2004, the volume of international private monetary transfers
through Ardshininvestbank (Armenia) make $160 mln

Presentation of Tavush and Gegharkunik Marzes development programs to
be held in Yerevan on February 21

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KAREN NAZARYAN APPOINTED TO POST OF ARMENIAN AMBASSADOR TO IRAN

YEREVAN, February 1. /ARKA/. President Kocharyan signed a decree on
Friday appointing Karen Nazaryan to the post of Armenian Ambassador
to Iran. According to Presidential Press Service, Nazaryan was born
in 1966, graduated from Yerevan State University as orientalist in
1990 and Diplomatic Academy of Russian Foreign Ministry in 1992.
Since 1991 he has worked at various positions in the RA Foreign
Ministry and since 2002 worked as Adviser to Armenian Foreign
Minister and simultaneously fulfilled duty of Armenian-American
intergovernmental commission’s member. M.V. -0–

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ASHOT KOCHARYAN APPOINTED TO POST OF ARMENIAN AMBASSADOR TO INDIA

YEREVAN, February 1. /ARKA/. President Kocharyan signed a decree on
Friday relieving Presidential Press Secretary Ashot Kocharyan from
his post and appointing him to the post of Armenian Ambassador to
India. He will succeed Armen Bayburdyan, who fulfilled his diplomatic
mission in India from March 2000 to November 2004. M.V. -0–

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INECOBANK STARTS ISSUING CO-BRAND CARDS

YEREVAN, February 18. /ARKA/. The Armenian “Inecobank” is the
country’s first bank to start the issue of co-brand international
Master Cards, in cooperation with “Austrian Airlines”. At today’s
presentation, Executive Director of the “Inecobank” Yervand
Barseghyan reported that a holder of this cards will enjoy the right
to a 3% discount on a ticket of “Austrian Airlines”, as well as to
the transportation of 10kg. of luggage free of charge. Besides, the
co-brand cards allow their holders to accumulate bonuses, which, if
the client wants, can be converted into additional discounts on the
“Inecobank”‘s services. Card holders will also enjoy the right to
discounts on purchase made at the “Vesta” and “Zodiak” electronics
shops, as well as at the “Bever” and “Khartya” computer shops.
Another advantage of the card is that it can be served by both the
MasterCard international system and the local ArCa system.
President of the Central Bank of Armenia Tigran Sargsyan said that
“the offer of such novelties on the market is evidence that
competition between local banks is getting keener, which is to
client’s advantage.”
The “Inecobank” was incorporated on February 7, 1996. The founders of
the bank are individuals, over 70% of them being residents. In
December 1997, the bank was the first to start serving trade in
consumer goods on credit. According to a survey conducted by the
prestigious journal “Banker”, the Armenian “Inecobank” was among 20
most rapidly developing banks in transitional economies. In 2004, the
“Inecobank” was recognized Armenia’s “Best dealer serving the
internal debt.” ($1=AMD473.45). P.T. -0–

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REGULAR SESSION OF THE ARMENIA-EU COMMITTEE ON COOPERATION TO BE HELD
IN YEREVAN IN JUNE 2005

YEREVAN, February 18. /ARKA/. The regular session of the Armenia-EU
Committee on cooperation will be held in Yerevan in June 2005, as
stated the Chief of the Department for Foreign Economic Policy of RA
Ministry of Trade and Economic Development Garegin Melkonyan.
According to him, the committee stably works, and specific program
are developed and being implemented currently.
To note, the previous session of the Committee was held in 2004 in
Brussels. The co-Chairman of the Committee representing the Armenia
side is the Karen Chshmarityan, the RA Minister of Trade and Economic
Development. A.H. –0–

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ARMENIAN DELEGATION TO LEAVE FOR GREECE TO PARTICIPATE IN THE MEETING
OF MINISTERS OF PABSEC STATES-MEMBERS

YEREVAN, February 18. /ARKA/. Minister – Head of the RA Government’s
apparatus Manuk Topuzyan and the Head of the Department for Foreign
Affairs adjunct to the RA Government Arthur Manaseryan left for
Greece, where they will participate in the meeting of the Ministers
of the states-members of the Parliamentary Assembly of the Black Sea
Economic Cooperation (PABSEC) to discuss “Improvement of State
Administration and Structure Reforms”. According to RA Government’s
Press Service, the discussions will be held on February 20-21. It’s
planned that by the results of the meeting Ministers of Justice and
Ministers responsible for state administration of the states -members
of PABSEC will make a joint statement on “Structure Reforms and
Quality Administration”. A.H. –0–

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A CRIMINAL FALSIFYING PAYMENT CARDS IS ARRESTED IN YEREVAN

YEREVAN, February 18. /ARKA/. A criminal falsifying payment cards is
arrested in Yerevan. According to the Press Service Department of RA
National Security Service (NSS), as a result of operative
investigation, on February 17 Artak Sedrakyan, a resident of Yerevan
born in 1981, was arrested when using a false plastic card. His
accomplice Gevorg Lazarian (born in 1982) came to RA NSS and
confessed his guilt. A criminal proceeding is instituted.
“This type of crime is something new for our society. However, we
warn that we have enough power and capacity to detect and neutralize
criminals”, according to the press-release.
>>From banks and centers for servicing payment cards signals about
getting money from ATMs of Yerevan by means of using false plastic
cards. About $ 15-20 thsd is defalcated, according to the ArCa system
specialists. A.H. -0–

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TWO THIRDS OF BANK DEPOSITS OF ARMENIA ACCOUNT FOR DEPOSITS IN USD

YEREVAN, February 18. /ARKA/. Two thirds of bank deposits of Armenia
account for deposits in USD, as stated CBA Chairman Tigran Sargsyan
at a press-conference. According to him, that is why the law on
Guaranteed Compensation of Bank Deposits of Individuals provides for
difference in guarantying deposits in USD and AMD. “Our primary goal
is to stimulate the growth of deposits in AMD in the banking system,
that’s why they are guaranteed in terms up to AMD 2 mln., and those
in USD- up to AMD 1 mln.”, he said. Besides, according to him, the
same goal, that is stimulation of AMD circulation in the republic and
prevention further dollarization, is pursued by the law on Currency
Regulation adopted in 2004.
On November 24, 2004, the RA Parliament adopted in the third reading
the Law On Guaranteed Compensation of Bank Deposits of Individuals.
The Law stipulated the formation of a Deposit Insurance Fund at
commercial banks’ expense. Banks are to effect quarterly payments to
the Fund. The Fund guarantees foreign currency deposits up to AMD
1mln., and deposits in AMD up to AMD 2mln.
According to CBA, there are as many as 3 mln. 817 thsd. 860 deposits
totaling AMD 110 206 mln in Armenia. A.H. –0–

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A BOARD OF TRUSTEES OF DEPOSITS INSURANCE FUND IS FORMED IN ARMENIA

YEREVAN, February 18. /ARKA/. A Board of Trustees of Deposits
Insurance Fund is formed in Armenia. According to CBA Chairman Tigran
Sargsyan, the Council of Trustees includes Tigran Khachatryan (Deputy
Minister) and Arshaluys Margaryan (Chief of the Department for State
Debt Management) from RA Ministry of Finance and Economy, and Samuel
Chzmachyan (Chairman) from the Union of Banks of Armenia and the
President of ACBA Stephan Gishyan. Besides, CBA in the Board is
represented by CBA Chairman Tigran Sargsyan, who was elected a
Chairman of the Board, and the Chairman of CBA’ Board Karine
Minasyan. The seventh member of the Board is elected the Chairman of
RA NA Standing Committee on Financial-Credit, Budgetary and Economic
Affairs Gagik Minasyan.
CBA Chairman noted that the Board of Trustees will monitor the
activity of the Executive Director of the Fund, utilization of the
accumulated finances in the Fund, will set the criteria for
management. According to Sargsyan, quite high status of members of
the Board of Trustees will ensure “transparent and safe” work of the
Fund. He noted that the finances attracted by the Fund will not be
invested into high-risk assets.
On November 24, 2004, the RA Parliament adopted in the third reading
the Law “On guaranteed compensation of bank deposits of physical
persons”. The Law stipulated the formation of a Deposit Insurance
Fund at commercial banks’ expense. Banks are to effect quarterly
payments to the Fund. The Fund guarantees foreign currency deposits
up to AMD 1mln., and deposits in AMD up to AMD 2mln.
The Law will apply to the banks that will legally operate from July
2005, but not to the subsidiaries of foreign banks that, according to
the RA Law, have no right to attract deposits of individuals in
Armenia. As regards foreign banks’ branches, their deposits will be
guaranteed by the Fund as well. Currently, $2 mln is accumulated in
the Deposits Insurance Fund ($1 -AMD 473,45). A.H.–0–

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ARMENIA PLANNING TO COMPLETE NEGOTIATIONS OVER ITS MEMBERSHIP IN
INTERNATIONAL EXHIBITION ORGANIZATION

YEREVAN, FEBRUARY 18. /ARKA/. Armenia is planning to complete
negotiations on its membership in International Exhibition
Organization, as stated Garegin Melkonyan, the Head of RA Trade and
Economic Development Ministry Department for Foreign Economic Policy,
at today’s press-conference. In his words, work for joining to the
organization’s appropriate convention is under way now and all
procedural matters are planned to be settled by the end of the year.
He noted that the Organization is reckoned among quite impressive
structure, which controls all large-scale registered exhibitions all
over the world.
According to Melconyan, as many as 30 exhibitions are expected to be
opened in Armenia in 2005, the majority of which – under the auspices
of the Ministry. M.V. -0–

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IN 2004, THE VOLUME OF INTERNATIONAL PRIVATE MONETARY TRANSFERS
THROUGH ARDSHININVESTBANK (ARMENIA) MAKE $160 MLN

YEREVAN, February 18. /ARKA/. In 2004, the volume of international
private monetary transfers through Ardshininvestbank (Armenia) made
$160 mln. According to the Chairman of the bank’s Board Aram
Andreasyan, the bank is the exclusive agent of Money Gram
international payment system in Armenia. “The private monetary
transfers service occupies a significant place in the field of
“retail” banking activity in servicing individuals”, according to the
press-release.
The “Arshininvestbank” CJSC was issued a banking license (#83) by the
Central Bank of Armenia on February 27, 2003. The bank was founded by
the Russian “International Business Center” financial-industrial
group. The bank’s shares are held by two enterprises forming the
group. By December 31, 2004, the bank’s total capital had been AMD
5.bln, its authorized capital being about AMD 3bln. The bank’s assets
totaled AMD 38.3bln., its net profit in 2004 totaled AMD 1,788.4mln.,
and balance profit AMD 2,418.9mln. According to the information at
ARKA’s disposal, the “Ardshininvestbank” is among the leaders of
Armenia’s banking system as to the key activity indices, as well as
asset and capital profit-earning capacity.
According to the CBA, the aggregate volume of monetary transfers in
the RA banking system of Armenia via international payments system
amounted to AMD 219,1 bln. (about $412 mln) in 2004. As of As of
December 31, 2004, transfers via the following international payment
systems were made: Western Union, Money Gram, Anelik, Unistream,
Express, Interexpress, Contact. ($1 – AMD 473,45). A.H. –0-

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PRESENTATION OF TAVUSH AND GEGHARKUNIK MARZES DEVELOPMENT PROGRAMS TO
BE HELD IN YEREVAN ON FEBRUARY 21

YEREVAN, February 18. /ARKA/. Presentation of Tavush and Gegharkunik
Marzes development programs will be held in Yerevan on February 21.
According to the Public Relations and Press Department of RA
Government, the main objective of the programs is the assistance to
administrations of the regions and implementation of RA Government
strategic poverty reduction program. This event will be a final
opportunity to discuss the Regional Development Plans before they are
submitted to the Cabinet for approval. This should take place next
month.
The meeting will mark the completion of the first phase of the
Armenia Regional Development Programme, funded by the Department for
International Development (DFID) and implemented by the British
consultants Oxford Policy Management.
Hovik Abrahamyan, the Minister for Territorial Administration, and
Thorda Abbott-Watt, the British Ambassador, as well as RA NA
Deputies, representatives of RA President’s staff and central and
regional government agencies, the donor community, embassies, NGOs,
contractors and other potential development partners will take part.
DFID provided the funding to draw up the Regional Development Plans
and has also set aside ?2 million for their implementation in Tavush
and Gegharkunik regions of Armenia (?1 million for each). The main
goal of the program is to render assistance to the administrations of
the regions, development and implementation of the strategic program
of the RA government on poverty reduction. The program will last for
54 months, 18 of which will be spent on the development of the
program.
DFID has been operating in Armenia since 1996. The main goal of DFID
is to contribute to the government of the republic in the issue of
poverty reduction. L.V. –0

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