Author: Chaltikian Arsine

GREAT LIKELIHOOD FOR RECOGNITION

Hayots Ashkhar Daily
06 Nov 08
Armenia

US President-elect Barrack Obama is very likely to finally recognize
the Armenian Genocide in his presidential address to be published on
April the 24th, Arpi Vardanyan, Head of the office of the Armenian
National Congress of America said.

According to A. Vardanyan, it is still early to anticipate that
B. Obama’s election will lead to any changes in the Karabakh
settlement process. "The Karabakh issue is quite unlikely to become
a top priority task for B. Obama after assuming his post. J. Byden,
who has been dealing with foreign policy issues for already 20 years,
is well-aware of the Krabakh issue and its history, and that may have
a positive impact on the process; however, it is still early to make
clear-cut predictions," he noted.

EBRD ACQUIRES 25%+1 SHARES OF ARARATBANK

Noyan Tapan

Nov 3, 2008

YEREVAN, NOVEMBER 3, NOYAN TAPAN. An agreement on the European Bank for
Reconstruction and Development – EBRD’s stake of 25%+1 shares in the
authorized capital of Araratbank OJSC was signed on October 12. EBRD
aqcuired the indicated stake in Araratbank for 7 million dollars,
as a result of which the bank’s authorized capital will amount to 24
million USD against the previous 13 million USD. By the conclusion
of this deal, 70% of Araratbank’s shares will belong to Flash company
whose owner is the chairman of Araratbank’s board Barsegh Beglarian,
while the other shares will be in free circulation.

The agreement was signed by the EBRD Director for the Caucasus,
Moldova and Belarus Michael Davey and Araratbank’s Board Chairman
and Executive Director Ashot Osipian.

After the signing ceremony M. Davey stated that becoming a shareholder
of Araratbank expresses EBRD’s trust in this bank. In his words,
dramatic changes are taking place in the world’s financial markets,
and EBRD focuses its activities on overcoming the financial crisis
in various countries.

However, it does not apply to Armenia as EBRD’s investment as a
shareholder is the fourth one in the Armenian banking system which
reflects EBRD’s trust in the banking system of the country. Besides,
by signing the indicated agreement EBRD asserted its trust in the
managers, shareholders and staff of Araratbank. M. Davey expressed his
satisfaction at the fact that by becoming a shareholder of Araratbank,
EBRD will contribute to increasing the employment level in Armenia
and developing its economy.

B. Beglarian said that the agreement’s signing is an important
step not only for Araratbank but also for the whole economy of
Armenia. According to him, the activities of Araratbank will be based
on new technologies and modern banking standards in the future as
well. It was stated that huge work was done in this direction, which
is evident from the financial indices of the bank and the society’s
trust in it.

The Chairman of the Central Bank of Armenia (CBA) Arthur Javadian
considered the siging of the agreement as a significant event in the
economic life of Armenia as on behalf of EBRD international financial
structures once again asserted their confidence in the reforms being
implemented in Armenia, as well as in the Armenian dram because EBRD’s
shareholder investment was made in drams. By doing so EBRD once again
expressed a high opinion about the monetary and supervisory policy
of CBA. A. Javadian also explained EBRD’s shareholder investment
in Araratbank by the use of modern corporate governance rules in
this bank.

The RA minister of finance Tigran Davtian in his turn said that the
agreement signed between EBRD and Araratbank is a serious step in
terms of developing the Armenian financial system. In his words,
it is symbolic that the agreement was signed under conditions of an
international financial crisis which shows that the financial system
of Armenia is continuing to develop in a sustainable and confident way
and to attract new resources from influential international financial
structures. The minister underlined that EBRD’s active participation
in Armenia’s banking system rises into a new quality as it symbolizes
trust in the country’s banking and financial systems and the prospects
of its sustainable economic development.

Ashot Osipian said that EBRD is quite an efficient owner as by
introducing modern banking technologies and improving the corporate
governance and risk management systems, it guides commercial banks
in their work to occupy leading positions in financial markets. In
his opinion, thanks to EBRD’s participation in the capital of the
bank, the old and new shareholders of Araratbank will become owners
of rapidly growing and reliable assets which grew by 36% in 2008,
while the book cost of the bank’s shares increased by 700 drams
(over 2.28 dollars). Their nominal value makes 5 thousand drams.

As of October 1, 2008, the overall capital of the bank made 5.4
bln drams, growing by 17.2% in 2008. The growth was due to profit
investment and replenishment of the authorized capital by 381.5
bln drams as a result of the direct public sale of shares in early
2008. Araratbank currently has 86 shareholders. Its overall assets grew
by 10.5% in the second quarter of 2008 and made 28.3 bln drams, while
its credit investments grew by 8.4% to 13.241 bln drams. The overall
liabilities of the bank grew by 12.2% or 2.5 bln drams in the indicated
quarter, including the growth of deposit accounts of natural persons
by 35.7% or 584 mln drams. The current profit of the bank increased
by 186 mln drams to 515 mln drams in the second quarter of 2008.

STAFF OF RA MFA REDUCED BY 35 EMPLOYEES, FINANCING INCREASED BY 12.5%

Noyan Tapan
Oct 30, 2008

YEREVAN, OCTOBER 30, NOYAN TAPAN. By the 2009 draft state budget,
the financing of expenditures of the RA Ministry of Foreign Affairs
will grow by 858 mln drams or 12.5% to 7.726 bln drams, the deputy
minister of finance Pavel Safarian announced at the October 30 joint
sitting of the National Assembly standing committees.

According to him, the programmed expenditures on the MFA managerial
staff will make 6.418 bln drams in 2009, growing by 11% or 630 mln
drams on 2008.

Expenditures on the MFA staff maintenance are envisaged to make 913.3
mln drams, which exceeds the 2008 index by 20.1%. In planning the
expenditures, it was taken into account that the ministry’s staff
was reduced by 35 employees as a result of structural changes in
connection with a change in the status of the MFA Agency of Relations
with the Diaspora and the MFA Department for Implementation of
Regional Programs. According to the deputy minister, the growth of
expenditures is conditioned by an increase of salaries. In particular,
it is envisaged increasing additional payments for diplomatic ranks
5.5fold in 2009. An additional payment was established for diplomats
with knowledge of a third foreign language for the first time.

Expenditures on maintenance of embassies and representative offices
are envisaged to make 5 bln 142 mln drams in 2009, which exceeds by
475 mln drams the 2008 index.

TURKISH PRESIDENT SAYS NEW CLIMATE TO ERADICATE PROBLEMS WITH ARMENIA

Anadolu Agency
Oct 30 2008
Turkey

Turkish President Gul said that "Everyone must support this climate. I
expect good developments."

Turkish President Abdullah Gul said Wednesday that his recent visit to
Armenia took place to create a new climate between Turkey and Armenia.

Speaking to reporters at a reception held at the Cankaya Palace to
celebrate the Turkish Republic Day, President Gul said that "the new
climate will eradicate problems (in relations with Armenia)."

"Everyone must support this climate. I am hopeful. I expect good
developments," Gul said.

In response to a question on terror, President Gul said that "we
discuss this issue of terror in our meetings and know everything. We
need to re-mobilize for this matter."

Asked if he has any plans of organizing a summit on terror, Gul
replied that "the issue of terror gets discussed in the meeting of
the National Security Council."

AMERICAN CHAMBER OF COMMERCE IN ARMENIA AND AMERICAN BUSINESS FORUM IN TURKEY BELIEVE THAT INITIATIVE ON REGULATING ARMENIAN-TURKISH RELATIONS TO HAVE TREMENDOUS ECONOMIC AND POLITICAL IMPACT ON THE REGION

ARMENPRESS
Oct 28, 2008

YEREVAN, OCTOBER 28, ARMENPRESS The American Chamber of Commerce in
Armenia, an affiliate of the US Chamber of Commerce, and the American
Business Forum in Turkey, an affiliate of the US Chamber of Commerce,
strongly support the unprecedented efforts recently undertaken by
President Serzh Sargsyan of Armenia and President Abdullah Gul of
Turkey to normalize relations between Armenia and Turkey.

In a joint statement the Chairman of the Board of the American Chamber
of Commerce in Armenia, an affiliate of the US Chamber of Commerce,
Davit Atanessian and the Chairman of the Board of the American
Business Forum in Turkey, an affiliate of the US Chamber of Commerce,
Galip Sukaya considered that the recent developments initiated by the
leaders of Armenia and Turkey in the spirit of fostering regional
peace, security and stability have already manifested a historic
shift in relations between the two countries.

According to the statement, undoubtedly this will have a tremendous
economic and political impact on the region. These developments
encourage increased economic cooperation while fostering greater
regional security and engagement among business, political, economic,
cultural, and social spheres.

"It is our belief that improving relations between Armenia and Turkey
will foster free trade, regional cooperation, business development,
economic growth and improved living conditions for those in both
countries. We applaud the historic efforts of the Presidents of Armenia
and Turkey to address these sensitive issues which have divided our
nations for too long, and reach a long-lasting peace and stability
in the region. We call upon our members in Armenia and Turkey and
the entire international business community in both countries to
join us in advocating for resolving issues speedily and normalizing
diplomatic relations between Armenia and Turkey, clearing the way for
regional peace and security, and ultimately, economic development of
the entire region," says the statement provided to Armenpress.

AIDE TO TURKISH PRIME MINISTER: "WE ARE WAITING FOR ARMENIANS WITH OPEN ARMS"

Azeri Press Agency
Oct 28 2008
Azerbaijan

Ankara – APA. "We are not enemies with Armenians and do not regard
them as threat. We want to establish all possible best relations with
Armenia. We want to establish good relations with all Armenians in
the world, no matter where they live in Los Angeles or in Paris. We
expect them to support the process, not impede it. We are waiting for
Armenians with open arms," Ahmet Davutoglu, the chief foreign policy
aide to Turkey’s Prime Minister said in his interview to Hurriyet
newspaper. Taking a stance on Armenian Foreign Minister Edward
Nalbandian’s interview to BBC Turkish service Ahmet Davutoglu said
they were ready to solve all the problems with Armenia. Asked about
Azerbaijan’s concerns the aide said: "Improvement of our bilateral
relations will have influence on the Nagorno Karabakh issue," he said.

Edward Nalbandian said in his interview to BBC Turkish service that
there was no obstacle in normalization of Turkey-Armenia relations.

"First we expect diplomatic relations to be established and borders
to be opened. We want intergovernmental commission to be set up to
discuss all the problems between the two sides," he said.

ARMENIAN RAMKAVAR-AZATAKAN PARTY CALLS UP ARMENIAN AUTHORITIES TO LEAVE THE KARABAKH NEGOTIATING PROCESS WITHIN THE FRAMES OF THE OSCE MG

ArmInfo
2008-10-28 13:53:00

ArmInfo. Armenian Ramkavar-Azatakan Party [ARAP]is calling up Armenian
authorities to leave the Karabakh negotiating process within the
frames of the OSCE MG, chairman of ARAP Harutyun Arakelyan said today
at Hayatsk discussion club.

The statement says that the Karabakh conflict settlement talks have
been held over 14 years and turned into a senseless action. The
OSCE co-chair states – Russia, the USA and France are demonstrating
their adherence to the "double" standards, the bright evidence of
which are statements of high representatives of these countries that
Kosovo cannot be a precedent for Nagornyy Karabakh. Moreover, they
often make open bilateral pro-Azerbaijani statements which cause the
militaristic rhetoric of the President of Azerbaijan Ilham Aliyev. ‘In
such conditions the ARAP insists on leaving the negotiating process
and applying of the Armenian party to Hague Tribunal. We call the
entire Armenian Diaspora to submit the factual base to Hague Tribunal,
which testify of the true genocide of Armenians living in Azerbaijan
in 1988-1994. Let International Tribunal decide who is the real
aggressor and implemented the genocide. As for the negotiations,
they lost any sense’, – Harutyun Arakelyan said.

MARIE YOVANOVITCH: US UNCERTAIN WHETHER THE MINSK GROUP REMAINS VIABLE

armradio.am
27.10.2008 14:55

The football diplomacy initiated by the President of Armenia Serzh
Sargsyan is an evidence of the reality that Armenia stands for
peace and cooperation in the South Caucasian region, Secretary of
the National Security Council of Armenia Arthur Baghdasaryan said at
an international forum in Yerevan on October 27. According to him,
the Armenian authorities consider that it’s necessary to take the
path of dialogue when searching for a solution to any issue.

For her part, US Ambassador to Armenia Marie Yovanovitch noted
that the visit of the Turkish President to Yerevan was a really
"brave and very powerful step." "It can be compared with the thaw in
American-Chinese relations in 1970," the Ambassador added. According to
Marie Yovanovitch, it’s obvious that there is certain progress in the
Karabakh issue. The parties are negotiating a concrete document. She
noted, however, that those in the US think whether the Minsk Group
remains viable and whether it’s worth continuing the negotiations in
that format."

According to the assessment of the EU Special Representative for
the South Caucasus Peter Semneby, the South Caucasus region is of
great importance for the European Union. Turning to Armenian-Turkish
relations, he noted that the opening of the shared border between
Armenia and Turkey will benefit both countries. Peter Semneby declared
also that the EU supports the activity of the Minsk Group and aspires
to convince the conflicting parties to reach an agreement.

ABEL AGHANBEGIAN: UNLIKE RUSSIA, ARMENIA HAS NO "SAFETY CUSHION" TO RESIST FINANCIAL CRISIS

Noyan Tapan
Oct 23, 2008

YEREVAN, OCTOBER 23, NOYAN TAPAN. The international financial crisis
has mutually exclusive impacts on Armenia’s economy: on the one hand
in case of a correct economic policy, the sharp fall in oil prices
must result in a decline of gasoline prices, while on the other hand
the changes in foreign currency prices must contribute to structural
changes in the export.

Economist, Academician of Russia’s Academy of Sciences Abel Aghanbegian
expressed this opinion at the October 23 round table on the subject
"The Economies of Armenia and Russia Today and Tomorrow" organized
by A. Aghanbegian Higher School of Corporate Management functioning
under the patronage of the RA National Academy of Sciences.

He said that at the same time Armenia will encounter some difficulties
in terms of investment and charity funds attraction. Another difficulty
is related to the growth in prices of imported goods due to increased
inflation in exporting countries. Besides, a decline has occurred in
the number of those who came to Russia and olther countries affected
by the financial crisis to work temporarily there, as well as in their
incomes. For example, in this connection "there is a real disaster in
Moscow because almost half the construction work in that city is done
by Tajiks, Ukrainians and representatives of other nationalities, and
they have been dismissed from their jobs". For this reason there will
be a decline in the considerable amount of remittances sent to Armenia
from abroad that will result in a growth of domestic inflation which
in its turn will depreciate savings to be followed by the slowing
growth in the interest rates of bank deposits.

A. Aghanbegian pointed out the decline in the number of tourists to
Armenia as another negative effect of the international financial
crisis. According to him, in 2007, 510 thousand tourists visited
Armenia and spent 450 million dollars here.

Nevertheless, in his words, the impact of the crisis on Armenia will
not "so terrible as on Russia, even though Armenia has no "safety
cushion" that Russia has".

It was mentioned that the consequences of the international financial
crisis are more serious in Russia than in many other countries,
but Russia has a greater reserve of firmness due to its 7-8% average
annual economic growth in recent years. Its economic growth will only
slow down and make 4-5% in 2009 as compared with the previous year –
against 0-3% growth in other countries. Besides, Russia is currently
in third place in the world by its rerseves that amount to 800 billion
dollars. Prior to crisis, Russia’s gold reserves made 600 billion
dollars, the Stabilization Fund’s resources from the sales costs of
oil at high prices made 170 billion dollars, and the budget surpus
amounted to 80 billion dollars. The indicated resources are used first
of all for offsetting the insufficient liquidity of the Russian banks
forming the system, which allows to prevent bankruptcy of such banks
and to overcome the crisis, whereas there were such cases in the U.S.

A. Aghanbegian noted that for efficiently managed companies that
produce goods in demand, the financial crisis represents a period
of new opportunities to occupy markets and acquire assets (companies
and securities) at a cheap price.

In his words, many experts forecast that the stage of overcoming the
current international financial crisis will be much longer and more
painful, as compared, for example, with the 1998 financial crisis.

THE FACT-FINDING GROUP TO GET DOWN TO BUSINESS FROM NOVEMBER 4
Gevorg Harutyunyan

Hayots Ashkhar Daily
25 Oct 2008
Armenia

The Only Thing Left To Do Is To Clarify The Number Of The Members

As you know on October 23 President Serge Sargsyan signed a decree on
the procedure of the establishment and organization of the activity
of the fact-finding group.

The four coalition parties will come to a joint decision on their
two members

Head of "Orinats Yerkir" faction Heghine Bisharyan said: "Political
balance is maintained in the structure of the fact-finding group, and
the inclusion of at least one person representing the Human Rights
Defender will only add to the trust towards the before mentioned
structure set up by the decree of the President, especially because
all the five members of the committee must be skillful lawyers and
apolitilical persons. It is a serious guarantee for the expert group
to realize effective fact-finding activity and to help give right
assessments to March 1 developments.

In principle it is not important who will represent coalition in this
group – the candidate nominated by "Orinats Yerkir" or any other
coalition party. The most important thing is that this person must
be skillful and enjoy trust. Coalition will hold discussions to take
decision regarding these two members."

Secretary of ARFD faction Artashes Shahbazyan, who is also a member
of the NA Interim Committee recorded with satisfaction that finally
the fact-finding group would be established. "Unlike the committee,
the group will implement a pure professional activity, it will not
have any political task, it will not be engaged in a public activity
and it will not draw any conclusions. Specialists must be included in
the fact-finding group and I don’t attach great importance to which
political force will guide them.

There is nothing strange that the fact-finding group has been set
up by the decree of the President and not by the decision of the
Parliament. This means the fact-finding group won’t be under the
direct subordination of the NA Interim Committee.

Member of "Bargavach Hayastyan" faction and NA Interim Committee
Naira Zohrabyan expressed confidence saying: "Both pro-governmental
coalition, extra-parliamentary opposition, "Heritage" Party and the
representative of the Human Rights Defender will partake in the works
of the fact-finding group. This means the latter will really assist
the works of the committee.

If before the political opposition was dissatisfied that parity
will not be preserved in the group, at the moment the group is being
formed by their formula. I don’t think the opposition must have any
reservation."

Secretary of the Republican Faction, Chairman of NA Interim
Committee Samvel Nikoyan says though society won’t completely trust
any structure: "The format of setting up the fact-finding group will
essentially reduce the number of skeptics and the discontent. I don’t
think we have any problem in terms of the swift establishment of the
fact-finding group. And there are no reasons for the group to fail
in carrying out the task. That will be of an essential help for the
Interim Committee to effectively perform the recommendations received
from the Parliament.

Samvel Nikoyan says, had the fact-finding group been set up by the NA
decision and not the decree of the President, the facts revealed by
the group would be of mandatory significance for the committee. In
that case the fact-finding group would simply assist the works of
the NA Interim Committee.

The fact-finding group will have at least three members

Ter-Petrosyan’s Press Secretary Arman Musinyan gave laconic and
indefinite answers to our various questions: "We haven’t yet discussed
the issue of participating in the works of the fact-finding group.

Once we discuss it we will inform you about the results. At the moment
we are studying the represented document. After familiarizing ourselves
with the document we will answer your questions."

Instead the Human Rights Defender Armen Harutyunyan confirmed that his
representative would definitely be represented in the fact-finding
group. So we can definitely say that on November 4 the fact-finding
group will be formed and will have at least one member represented
by the Human Rights defender and two members from coalition.

Armen Harutyunyan also introduced his stance. "I will definitely
participate in the works of the fact-finding group, because I attach
great importance to the function of this group and I’m sure lots of
issues will be solved. It’s worth mentioning that the fact-finding
group won’t be set up in contrast to the NA Interim Committee, on the
contrary it will help understand the reasons of the tragic events of
March 1 and learn the truth.

Non-participation in the works of this committee is unacceptable
for me. We have made a step, the necessity of which has been many
times underscored.

The group is set up by the principle of parity and can go far in
terms of its investigations. I attach great importance to the fact
that the special report represented by the Human Rights Defender
will be one of the documents on which the activity of the group is
based. All the before mentioned facts are in favor of participation
and we must welcome the initiative of the Country’s President.