/PanARMENIAN.Net/
Armenian Ministries present activity reports for 2009
Weekly economic review (Jan. 18-23).
23.01.2010 GMT+04:00
Armenian Government started Wednesday discussions over Ministries’
2009 reports. In his opening speech, Prime Minister Tigran Sargsyan
said that all ministries had been recommended to prepare reports
concerning their 2009 activities, focusing a major accent on their
omissions and problems impeding reform implementation process.
`Secondly, it is necessary to determine the priority tasks for 2010,’
Head of the Government said, adding that the reports submitted will
help determine the positive results towards resolving key problems.
/PanARMENIAN.Net/ Speeches were subsequently delivered by Minister of
Education and Science Armen Ashotyan, Minister of Economy Nerses
Yeritsyan and Minister of Finance Tigran Davtyan.
The reports will be posted on ministries’ websites.
Tax and other revenues in Armenia’s state budget made AMD 674.4
billion in 2009, which is 16.4% less compared to the previous year, RA
Ministry of Finance says in its 2009 report.
According to the document submitted Wednesday by RA Finance Minister
Tigran Davtyan, tax revenues and duties comprised AMD 522.4 which is
15.9% less in comparison with 2008. In the meantime, tax/GDP ratio
made 16.6%, having decreased by 0.4% compared to the previous year.
Due to the financial-economic crisis, the 2009 budgetary deficit in
GDP sector made 7.4%.
In 2009, all state government bodies’ funding requests were fully met.
Armenia’s foreign debt will reach 36 per cent of GDP in 2009, against
13.2 per cent in 2008. According to the annual report of the Armenia’s
finance ministry, presented by the minister of finance Tigran Davtyan
, more than a half of the foreign debt is formed from loans granted
for a 35-40 year-period with 7 to 10 years grace period. The weighted
average annual interest rate of confessional loans reached 0.8 per
cent.
The national debt will amount to AMD 140.6 billion or 4.5 per cent
relative to GDP at the end of 2009.
In 2009, government bonds were in circulation 1,391 days on average,
compared to 1,535 days in the previous year.
Armenian Minister of Finance Tigran Davtyan left for Moscow to
participate in second conference of Eurasian Economic Community Anti
Crisis Council, ministerial press service reported.
Financial credits’ provision order will be confirmed at the
conference, investment programs’ funding as well as other current
issues discussed.
The Government of Armenia approved an agreement between Germany and
Armenia on financial cooperation during the meeting on January 21.
According to Deputy Finance Minister of Armenia, the chief treasurer
Atom Janjughazyan , this agreement provides the financial help from
the Federal Republic of Germany amounting to 100 million euros. 20
million euros will be directed to mortgage lending program, 22 million
euros – to continue the program of Vorotan Cascade’s Hydro Power
Plant, 18 million euros – to finance programs in the field of
renewable energy, 40 million euro – to the development of community
infrastructure, as well as ecological programs.
Armenia should intensively develop small and medium businesses,
according to Sergey Kapinos, Head of OSCE Office in Yerevan.
`We have proposed the Armenian government to make SME development the
mainstream of its economic policy,’ he told a PanARMENIAN.Net
reporter. `SME can promote the country’s economic development in 2010
and the OSCE Office in Yerevan is willing to contribute to the
process.’
In the framework of the World Future Energy Summit RA Deputy Prime
Minister, Minister of Territorial Administration Armen Gevorgyan met
the Minister of Nature Protection Rashid Ahmad Bin Fahadi.
Cooperation possibilities of both countries were discussed during the
meeting. The officials tuched upon the possibility of agricultural
products’ export.
RA Deputy Prime Minister Armen Gevorgyan spoke about investment
opportunities in the field of agricultural production in Armenia.
Armen Gevorgyan invited Rashid Ahmad Bin Fahad to visit Armenia.
Vice Prime Minister, Minister of Territorial Administration Armen
Gevorgyan is visiting the United Arab Emirates, press service of RA
ministry territorial administration reported. RA Deputy Minister of
Energy and Natural Resources Areg Galstyan, RA Ambassador to the UAE
Vahagn Melikyan represent Armenia at the summit.
During the visit RA Vice Prime Minister met the Minister of Foreign
Affairs of UAE, Sheikh Abdulla Bin Zayed Al Nahyan. Armen Gevorgyan
appreciated the dialogue between Armenia and the UAE, particularly in
various spheres of economy. In this regard, he informed that the
Armenian side has already formed an interdepartmental committee to
increase the efficiency of cooperation between the two countries.
During the meeting officials discussed possibilities of economic
cooperation in energy, agriculture, tourism, information technology,
banking, and other spheres. Vice Prime Minister stressed the
importance of developing cooperation in the field of renewable energy
and expressed hope that within International Agency for Renewable
Energy (IRENA), it receives a new development and a new quality. In
this regard, the necessity of cooperation with UAE in the field of
atomic energy was particularly stressed.
In turn, Sheikh Abdulla Bin Zayed Al Nahyan added that the UAE seeks
to raise relations with Armenia to a new level. He also stressed the
importance of cooperation in nuclear energy, noting that IRENA can be
a good platform to build these relationship.
The Armenian delegation headed by the Vice Prime Minister of Armenia
will take part in the congress " World Future Energy Summit" to be
held in Abu Dhabi from 18 to 21 January 2010.
Armenia is participating in International Green Week exhibition for
the food, agricultural, and horticultural industries, which kicked off
on January 15 in Berlin, RA Foreign Ministry press office reported.
It’s been the third time Armenia takes part in the exhibition,
supported by Federal German Ministry for Economic Cooperation and
Development. Production of Ararat Yerevan Brandy Company, Wines and
Liquors’ factory, Yerevan Champagne Factory, Sis, MAP, Multiagro and
Tamara companies was presented at the exhibition.
ArmRosGazprom CJSC presented company’s investment program for
2010-2012 to Public Service Regulation Committee.
According to program presented, total expenditures over the years
2010-2012 will comprise AMD 31,81 billion, with AMD 7,65 billion
allocated to transportation system and AMD 24,16 billion to gas
distribution system.
Program discussion is currently in progress, ArmRosGazprom press
service reported.
As of January 1, 2010, the number of gas consumers in Armenia reached
596353, ArmRosGazprom press office said. Thus, over the year 2009,
total number of gas consumers grew by 22398.
In all, 243137 signalling devices and cutoff valves were installed by
ArmRosGazprom in accordance with the governmental decree.
The refinancing rate was set at 5.5% during the January 21 board
meeting of the Central Bank of Armenia.
With 2% inflation growth registered in December 2009, the annual
inflation rate made 6.5%, exceeding the upper limit by 1.0%.
The CBA supposes that high inflation rate will be preserved, resulting
in stiff monetary management, the bank’s press service reported.
The Central Bank of Armenia set a 13 per cent annual estimated
interest rate, the CBA press office reported. This decision was
adopted by the Central Bank on January 21, 2010.
In 2008, the Central Bank’s set interest rate at 12 per cent per annum.
The loan portfolio of Ameriabank as of December 31, 2009, went beyond
AMD 52 bln having experienced a 68% increase over the level recorded
at the beginning of the year, the bank said in a press release.
The loan portfolio growth is not the only indicator of the efficient
lending spree. Committed to its client-focused policy to disclose the
clients’ needs and find tailored solutions, the Bank developed regular
activities targeted at the correct assessment of the potential
borrowers’ capacities and establishment of comprehensive cooperation
relationship with the existing borrowers. Thanks to these efforts the
Bank came up with a loan portfolio of high quality as of December 31,
2009 without any loss loans and NPL comprising 0.17 % only of the
total loan portfolio.
According to the results of the reporting year 89 % of the Bank’s loan
portfolio growth was sustained by the corporate lending. Loans to
corporates recorded 75 % increase during the year totalling AMD 44 bln
or 84 % of the total loan portfolio.
Although it adopted a corporate and investment profile of its
activity, Ameriabank also focuses on the lending to individuals,
namely, staff of its corporate clients, offering a wide range of loan
products which triggered 35 % increase in loans to individuals during
the year.
In 2009, Unistream international money transfer system ensured $551
million turnover, which makes more than half of transfer volumes in
Armenia, Unibank’s press service reported.
Transfers in the above-mentioned period exceeded $712,4 thousand.
According to Unistream Service and Control Department head Natalia
Ter-Gevorgyan, the system has been widely popular in Armenia since its
inception.
`Demand for the service is conditioned by low tariffs (starting from
11%) and high speed money transfers. The transferred sums are
available to recipients within 10-15 minutes upon delivery,’ she said.
The service also enables clients to make payments for imported
products and utilities, as well as redeem credits.
Using the service, Unibank clients can also formulate U-stream
overdrafts at discounted costs.
The bank also prepared New Year souvenirs for the clients who made
transfers via Unistream no less than 20 times in 2009.
Despite the difficulties of the crisis and negative market trends,
Unibank ensured growth of all indicators, in particular, the bank
expanded the quality credit portfolio and increased its customers
base, press office of the bank reported.
The assets of Unibank increased by 58% and by the end of December
surpassed AMD 108.6 billion. The capital of the Bank for the period
totaled AMD 11.6 billion, with the 22,8 per cent growth compared with
the beginning of the year. Credit investments of the bank increased by
43%t amounting to AMD 66.7 billion.
During 2009 Unibank’s commitments increased by 63,6 per cent and
reached AMD 97 billion.
The deposits exceeded AMD 85.6 billion drams. The amount of deposits
from legal entities has substantially increased up to 341%, reaching
AMD 37.3 billion. The volume of term deposits from individuals
amounted to AMD 45.4 billion, while the bank’s profit reached AMD 153
million.
Victoriya Araratyan