TOP TEN ECONOMIC EVENTS IN ARMENIA IN 2008: ARKA NEWS AGENCY

ARKA
Dec 19, 2008

YEREVAN, December 29. /ARKA/. ARKA News Agency’s correspondents
present the top ten economic events in Armenia in 2008.

1. In January, the world’s largest exchange company OMX became the
absolute shareholder of the Armenian Stock Exchange (ARMEX) and the
Central Depositary. The RA Government and the Scandinavian operator
signed a relevant agreement on November 21, 2007. On December 29,
2007, the CBA (Central Bank of Armenia) Board approved changes in
the charters of ARMEX and the Central depositary.

2. On January 16, the Russian Railways won the tender for the Armenian
Railway’s concession management. Under the agreement, the South
Caucasus Railways (SRC), the subsidiary of the Russian Railways,
became the concessionaire of the 750 km long Armenian Railway with a
period of 30 years and an option to extend the agreement for another
20 years. The Russian Railways is to invest $570mln in the company’s
rolling stock and infrastructure, with $230mln to be earmarked in
the coming five years. In case Armenia opens rail communication with
Turkey, investments may reach $610mln. If Armenia-Azerbaijan section
of the railway opens, the Russian company will invest $1.8bln. If the
Abkhazian section of the railway opens, investments may reach $2.2bln.

3. France Telecom (under the Orange brand) became Armenia’s third
mobile operator a s it made the most advantageous offer by paying
â~B¬51.5mln for a GSM license. The French operator opened FTA Telecom
as local company in Armenia.

After getting the license, the company is to invest â~B¬200mln in
Armenia in two years.

4. On August 20, the RA State Customs Committee and the RA State Tax
Service were reorganized into the RA State Revenue Committee by the
RA president’s decree. Gagik Khachatryan, ex-Chairman of the RA State
Customs Committee, was appointed Head of the State Revenue Committee.

5. Fitch Ratings upgraded Armenia’s long-term foreign and national
currency rating from BB-minus to BB, changing its forecast from
Positive to Stable. The agency also upgraded Armenia’s Country
Ceiling Rating from BB to BB+ and approved the country’s short-term
B rating. In its report, Fitch said the reason for upgrading
the country’s ratings was the new government’s reforms that help
raise Armenia’s competitiveness. The agency also approved of the
disciplined and consecutive macroeconomic policy, emphasizing its role
in investments. At the same time, Moody’s Investors Service maintained
Armenia’s Ba2 Sovereign Rating, citing the country’s small government
debt, reasonable management and non-risky interest rates.

6. On May 20, Rosgosstrakh-Armenia was registered in Armenia. Owned by
the Russian giant Rosgosstrakh (Russian State Insurance), the company
s chartered capital amounts to 500mln drams (around $1.6mln). The
company is licensed for different types of insurance.

7. The European Commission granted Armenia a GSP+ (Generalized System
Preferences), enabling the country to launch a duty-free and tax-free
trade with EU members from January 2009. Over 7,000 products covered
by the general arrangement can enter the EU duty free.

8. On December 24, the RA Parliament approved the bill on the
All-Armenian Bank. The bank will be an open joint-stock company, with
the government holding 20% of the bank’s shares. Leading financial
organizations and private investors can become shareholders of the
bank. The chartered capital of the All Armenian Bank will total 30bln
drams (around $100mln). The Central Bank of Armenia plans to invest
6bln drams in the bank. The mission of the All Armenian Bank is to
help shape a robust and competitive Armenian community, as well as
to make Armenian business competitive in the market.

9. Armenia’s Government made a decision to establish an industrial
park in Armenia’s second largest city of Gyumri. Specialists say
Armenia needs some $55mln to implement the project. It will take the
country about 15 years to build the industrial park. The new business
incubator will focus on jeweler’s art, tourism, advanced technologies
aiming to boost Armenian exports. Construction of the industrial park
may launch in the20coming five years.

10. Armenia’s Government adopted a complex program of actions aimed
at making local economy immune to the global crisis. The RA prime
minister set up a commission to discuss business programs and open
new employment opportunities, so that the country can weather the
global economic storm.

The government will support businesses by granting state subsidies
and guarantees and participating in their capital. Development of the
small and medium-scaled business is among Armenia’s top priorities.

–Boundary_(ID_/UNl6PRC4fY4O089DAJZoQ )–