TOP TEN ECONOMIC EVENTS IN ARMENIA IN 2007
ARKA News Agency
Jan 7 2008
Armenia
1. In January 2007 the Law "About Supervisory Chamber" took effect.
Under the Law, the Chamber is an independent supervisory body that
exercises external state control over the use of budgetary funds and
public and communal property. Before, the Supervisory Chamber was
functioning within the country’s parliament.
Under the Law, the Chamber supervises state budget expenditures,
including subsidies and submission of conclusions on state budget
and privatization programs, annual reports of the Central Bank,
management and servicing of the national debt.
2. The signing of an agreement between the Government of Armenia and
"ALROSA" diamond extracting company on cooperation in diamond cutting
field. Under the agreement Russian raw diamonds are to be supplied to
Armenia for processing and re-export. "ALROSA" made an inspection and
picked up four enterprises – "Dimotech" Closed Joint Stock Company,
"Arevakn", DCA and "Yukos" – for cutting of the raw diamonds for over
$1mln supplied to Armenia at the end of December.
3. Armenia’s "AKBA-Credit Agricole Bank" received its first $12mln
syndicated loan from EBRD and Citygroup banking group for three
years. Later the bank received the second syndicated loan for $20mln
under the agreement signed with EBRD and the international consortium
of BZ BANK German banking group, Developing Worlds Markets American
investment foundation and Cordiant Capital Canadian investment
foundation. In the year 2007 Armeconombank also received a syndicated
loan for $15mln from EBRD and a number of world major banks.
4. The Vedanta Resources Company reached an agreement on sale of 84.2%
of the stock of Sterlite Gold Ltd. Canadian Company (with Ararat Gold
Recovery Company (AGRC) being its main asset) to Georgian "Marneuly
Kvatcite" that is a daughter company of "Industrial Investors" Russian
group. The transaction cost has not been announced, yet, according
to the preliminary information, it is $86mln ($0.3845 per share),
including payoff of $25mln debt of Sterlite Gold.
5. The biggest mobile operator on the territory of Russia and
the Commonwealth of Independent States (CIS) "Mobile Telesystems"
(MTS) open joint stock company purchased 80% of the authorized stock
of International Cell Holding Ltd. that is 100% indirect owner of
Armenia’s leading mobile communication operator K-Telecom (VivaCell
trademark). The option agreement on sale-purchase of the remaining
20% of K-Telecom is to take effect the earliest in July 2010 and is
to be in effect until 2012.
6. The Armenian Stock Exchange (Armex) has been reorganized to an
open joint stock company and sold to OMX Scandinavian Stock Exchange.
Under the agreement signed between the Government of Armenia and
the OMX, the latter became 100% owner of Armex and the Central
Depository. The shares of Armex and the Central Depository were
expected to be handed over to the OMX on January 3 2008. Apart
from the agreement on purchase of the shares, the Government of
Armenia and the OMX also signed an agreement on joint efforts to
ensure long-term development of Armenia’s capital market. According
to the experts, OMX’s coming to the Armenian market will promote
development of securities’ market in the country and will provide
broader opportunities to Armenian enterprises to attract domestic
and foreign investments.
7. The Russian Bank VTB and the Armenian Copper Programme (ACP)
company signed an agreement on cooperation. Under the agreement,
the sides are to jointly implement a project on development of Teghut
copper and molybdenum field and on construction of a mining factory
on the territory of Armenia with total cost of $300mln. The Bank VTB
is to organize the project financing for "Teghut" closed joint stock
company. Under the agreement, the Russian Bank VTB is to provide a
$257mln loan for 12 years for development of the Teghut cooper and
molybdenum field in Armenia.
8. The first section of Iran-Armenia gas pipeline was commissioned
in 2007. This means that Iranian gas started coming to Armenia.
9. During 2007 four companies placed their corporate bonds on the
market – "Shen Concern" closed joint stock company, "Armenian Copper
Programme" (ACP), "Valletta" Co. Ltd. And "ArmRosGasprom" closed
joint stock company. The total volume of the issues was 2.5bln Drams.
10. Russian "Vimpelkom" company became the 100%owner of the shares of
"ArmenTel" Telecommunication Company.
From: Emil Lazarian | Ararat NewsPress
