Author: Jagharian Tania

ARMENIA’S GDP MAY DROP BY 3% PERCENT AT THE END OF THIS YEAR OR GROW AS MUCH: EXPERT

ARKA
Feb 11, 2010

YEREVAN, February 11, /ARKA/. Manuk Hergnyan, chairman of Economy
and Values research center and director of IV Consulting, said today
Armenia’s GDP may drop by 3% percent at the end of this year or grow
as much.

Speaking at a news conference at Novosti international press center,
he said several possible options of economic growth should be
considered. Particularly, if no second wave of crisis comes, nothing
will change in Armenia because it has no steady sources to back up
a new growth and the same economic model, based on money transfers,
construction, consumption and incomes, will continue to work.

‘Under this scenario Armenian GDP may either drop by 3% or grow as
much and the inflation rate may range between 6-9%,’ he said.

He said also if a second wave of crisis comes, the government’s
expansionist policy and the growing foreign debt may shake the
macroeconomic stability because Armenia’s set of tools to withstand it
is limited. He said under that scenario large-scale infrastructure
projects, like the North-South transport corridor, may serve as
stimulating factors.

He also said a new economy development model can not rely only on
construction sector. The government should stimulate exports and take
into account possible changes in the region.

The government expects the economy to grow this year by 1.2%.

MINISTER OHANYAN MEETS CHIEF OF MILITARY JOINT STAFF TO PRESIDENT OF FRANCE

Armradio.am
12.02.2010 13:45

Within the framework of the visit to France Armenia’s Defense Minister
Seyran Ohanyan had a meeting with the Chief of Military Joint Staff to
President of the French Republic, Admiral Edouard Guillaud. Minister
Ohanyan congratulated Admiral Guillaud on his appointment to the post
of Chief of Military Joint Staff to President of the French Republic.

During the meeting the parties discussed the programs of bilateral
military cooperation and the provisions of the agreement signed in
Paris. The interlocutors touched upon regional security issues.

FEW YEARS LEFT FOR PEACEFUL SOLUTION OF KARABAKH CONFLICT

news.az
Feb 12 2010
Azerbaijan

Nikolai Svanidze The influence of the Azerbaijani Diaspora is growing.

If there is a conflict between Azerbaijan and Armenia, it will be
a political defeat for Russia no matter how it ends, said Nikolai
Svanidze, popular TV journalist, member of the Russian Public
chamber and member of the expert council of the Interregional public
organization of the Society of Friendship with Azerbaijan.

He said that the statement is that the emotional degree is rising
and few years are left for the peaceful resolution of the conflict
while Russia needs to show increased activity in this region.

"I think it is impossible to settle the issue peacefully at once. The
parties’ positions are polar and it is impossible to meet one and
another at the same time. We need a continuous dialogue, this must be
achieved, despite the high emotional spirit and this is Russia’s. I
repeat once again that if there is a conflict between Azerbaijan and
Armenia, this will be a political defeat for Russia no matter how
it ends".

Nikolai Svanidze noted that the influence of the Azerbaijani Diaspora
is growing.

"Moscow has a very strong community of big businessmen and super-elite
Azerbaijani business, and it is a very influential lobby. Moreover ,
the action that was taken, namely the organization of the Society
of friendship between Russia and Azerbaijan, is very helpful. Let’s
see how the news services of major departments are working, they are
taking journalists with them, showing, telling and thus attracting
attention to them.

There must also be public relations services at the state level. They
must invite, show the country and city, and even if journalists or
politicians have been set up negatively, they will turn into people who
are sympathizing this country. It is psychologically more difficult
to take a position, which will face misunderstanding or antipathy
among the people with whom he sat at the same table. That is, I want
to say that the contacts are the most effective means of influence".

EFSE TO EXTEND MICROCREDIT TO ARMENIAN SMALL BUSINESSES
Lilit Gevorgyan

World Markets Research Centre
Global Insight
February 11, 2010

On 9 February the representative of the German KfW Bank in Armenia,
Karapet Gevorkian, stated that Armenia will join the European Fund
for Southeast Europe (EFSE). The preliminary decision was taken
during Central Bank governor Arthur Javadian’s December 2009 visit to
Germany, where KfW, the initiator and promoter of EFSE, is based. The
EFSE public-private partnership intends to include Armenia as well
as Azerbaijan, Georgia and Belarus, all members of the European
Neighbourhood Programme sponsored by the European Union (EU). The
Fund, according to Gevorkian, will provide much-needed microcredit to
Armenian micro, small and medium businesses. Over the next five years
an estimated 300 million euro (US$413 million) will be allocated to
the new member countries in the shape of some 70,000 micro loans. The
EFSE is the largest microfinance investment fund in the world, with
a 700-million-euro portfolio, and it currently operates in Bosnia and
Herzegovina, Romania, Serbia, Kosovo, Montenegro, Moldova, the Former
Yugoslav Republic (FYR) Macedonia, Albania, Bulgaria, and in Ukraine.

Significance:Armenian small and medium business desperately needs
credit, which has become very scarce in the wake of the global
economic crisis. The Armenian economy has seen a dramatic 18% drop
in its GDP, one of the worst among the former Soviet republics, and
small and medium businesses have suffered most from the crisis. The
EFSE membership is good news for many small business owners as well
as low income households; however it will take some time for judging
the outcome of the microcredit lending. A lot depends how the national
credit lenders will carry out their task; if it would be without undue
delays and based on proper creditworthiness assessment. Furthermore
the repayment of the loans will be another factor determining the
success of the EFSE plans. The Armenian government has a major role to
play–if it fails to change the oligarchic structure of the economy,
and root out the corruption that is widespread amongst tax and customs
agencies, small and medium businesses may find it difficult to make
good use of the EFSE extended credit and repay it.

ARMENIAN AND POLISH FOREIGN MINISTRIES HELD POLITICAL CONSULTATIONS

Foreign Ministry
Feb 11 2010
Armenia

Armenian-polish intergovernmental commission will be established

On February 10, Deputy Foreign Minister of Armenia Karine Kazinian
visited Warsaw for two-days working visit to hold political
consultations between Foreign Ministries of Armenia and Poland.

On the first day of visit Mme Kazinian met with Marcin Korolec, Deputy
Minister of Economy, responsible for Poland’s economic cooperation
with Europe.

In the course of the meeting the parties stressed the necessity of
stimulation of Armenian-Polish economic cooperation and the importance
of its coordination within an intergovernmental commission. Mme
Kazinian informed about consents reached between Armenia and European
Union in the sphere of economic cooperation, on stimulation of whom
can highly benefit the program of Eastern Partnership.

Armenian Deputy Foreign Minister stressed the importance of the
negotiations on "Deep and comprehensive free trade Agreement" in
the framework of the mentioned program. In response, Polish Deputy
Minister of Economy suggested to Armenian side Polish expert support
for the elaboration of the document.

Responding positively to the suggestion of Armenian side to establish
an Armenian-Polish intergovernmental commission, Polish side suggested
to hold the first session in Yerevan during this year, keeping in
mind that the second session can be held in Warsaw in 2011, when
Poland will take EU presidency.

The same day Karine Kazinian had a meeting in Polish Sejm with the
members of the parliamentary friendly group between Polish Sejm and
Senate and the Armenian National Assembly.

During the meeting Lukasz Abgarovic, head of Polish-Armenian
parliamentary group, presented the activities of the group, emphasizing
the importance to the significance to the upcoming visit to Armenia
by the invitation of Armenian-Polish parliamentary group of Armenian
parliament.

The two sides discussed the cooperation between delegations of
Armenia and Poland in the Parliamentary Assemblies of international
organizations.

Deputy Minister Kazinian responded to the questions of Polish deputies
on Armenian-Turkish relations, peaceful resolution of Nagorno-Karabakh
issue, ensuring regional security in the South Caucasus.

The members of parliamentary group noted with satisfaction, that the
visit of Poland’s Prime-Minister Donald Tusk to Armenia in 2010 will
serve as a good stimulus for the development of bilateral relations
and for the strengthening of friendship between Polish and Armenian
nations.

In Polish Sejm Karine Kazinian also had a meeting with Tomasz Lenz,
head of permanent commission on EU Eastern Partnership program. During
the meeting the two had a detailed discussion on the implementation
of the EP program.

AZERBAIJAN MISINFORMING EUROPE ABOUT ARMENIA

news.am
Feb 11 2010
Armenia

Azerbaijan is misinforming the European agencies that Armenia is
against the concept of Euronest, Naira Zohrabyan, Chairwoman of the
Standing Committee on European Integration, RA Parliament, stated at
her meeting with EU Advisor Eduardo Lorenzo Ochoa.

The Information and Public Relations Department, RA Parliament, told
NEWS.am that Ms. Zohrabyan presented the RA Parliament’s work under
the parliamentary Eastern Partnership program to the EU Advisor. The
sides also discussed the final stage of Euronest’s work.

Eduardo Lorenzo Ochoa told Ms. Zohrayan that information on Armenia
allegedly being against Euronest is circulating. Zohrabyan expressed
the opinion that the misinformation is likely being spread by
Azerbaijan, as the Armenian side clearly pointed out the tasks that
are acceptable to it and should be discussed by Euronest. Armenia
also pointed out the reservations unacceptable to it, particularly the
fact that the Nagorno-Karabakh problem cannot be discussed by Euronest.

The EU Advisor informed the Armenian MP that the Euronest delegations
are to hold the first meeting in Brussels on March 23-24.

YEREVAN PRESS CLUB WEEKLY NEWSLETTER

FEBRUARY 5-11, 2010

HIGHLIGHTS:

"PRESS CLUB" CYCLE: ARMENIA AND INTERNATIONAL ORGANIZATIONS

MEO CONCLUSION ON THE APPEAL OF THE CHIEF EDITOR OF "DELOVOY EXPRESS"

NCTR WORKS OUT CRITERIA TO ARTICLE 24 OF BROADCAST LAW

INVESTIGATION ON THE ATTACK OF NVER MNATSAKANIAN WITHHELD

RA CONSTITUTIONAL COURT REVOKED THE COMPLAINT OF FOI CENTER

"MEDIA AND ADVOCACY" BOOK ISSUED

"PRESS CLUB" CYCLE: ARMENIA AND INTERNATIONAL ORGANIZATIONS

On February 9, another "Press Club" show went on the air of "Yerkir Media"
TV company. The cycle is produced under Yerevan Press Club project,
supported by the Open Society Institute. The guests of the program host, YPC
President Boris Navasardian were Larisa Alaverdian, deputy of RA National
Assembly, Secretary of "Heritage" faction, and Artashes Shahbazian, deputy
of RA National Assembly from "Dashnaktsutiun" faction. The discussion
centered on the cooperation of Armenia with international organizations in
frames of the composition of the PACE Armenian delegation, regarding the
exclusion of representative of "Heritage" opposition party.

The next "Press Club" show will be aired on "Yerkir Media" on February 16,
at 21.15.

MEO CONCLUSION ON THE APPEAL OF THE CHIEF EDITOR OF "DELOVOY EXPRESS"

On February 4 the session of Media Ethics Observatory was held at Yerevan
Press Club. As it has been reported, MEO was formed on March 10, 2007 by the
heads of Armenian media who supported the YPC self-regulation initiative
(see YPC Weekly Newsletter, March 9-15, 2007). Its mission consists in
considering the complaints-appeals regarding the violation of the Code of
Conduct of Media Representatives and giving its opinion on them. Currently
the Code of Conduct and its addendum, the Declaration on Election and
Referendum Coverage Principles, are signed by 41 entities, representing 44
media. The initiative is also supported by 8 journalistic associations.

At the session MEO considered the appeal of Eduard Naghdalian, Chief Editor
of "Delovoy Express" business weekly. On February 1, 2010 Eduard Naghdalian
addressed a request to MEO to render an expert judgment on the complaint of
Mr. Vardanian, Director of "D.E.L.V" LLC, submitted to the weekly. According
to Mr. Vardanian, the advertising article, titled "Sophia-Yerevan-Beijing"
and published in "Delovoy Express" on December 8, 2009, contains a number of
untrue expressions, discrediting his company. The head of "D.E.L.V" LLC
demanded to remove the abovementioned article from the weekly website and to
publish a corrective advertisement.

The MEO expert judgment notes that according to Article 23 of RA Law "On
Advertisement", the advertising medium is not responsible for the
advertising content, consequently the demands of the "D.E.L.V" Director to "
Delovoy Express" are groundless. At the same time, MEO emphasized that these
demands can be addressed not to the weekly, but to the advertiser. Besides,
the dispute is subject to adjudication in front of the court, thus the
advertiser must appear as defendant in line with Article 19 of RA Civil
Code. Moreover, the complainant is entitled to publish an advertisement in
"Delovoy Express" (based on the principle of granting equal opportunities to
advertisers, implied by the Code of Conduct of Media Representatives). The
complainant has the right to require to publish the advertisement in the
same volume, in the same place, on the same terms, and to put in the
weekly’s website, as the piece – subject of the dispute, the MEO judgment
notes.

NCTR WORKS OUT CRITERIA TO ARTICLE 24 OF BROADCAST LAW

The expert commission, established under the National Commission on
Television and Radio, has released a draft of criteria for erotic TV and
radio programs, films, containing horror and violence scenes, as well as
programs which could have negative influence on the health, mental, physical
growth and education of minors. The document is developed in compliance with
the requirements of Article 24 of RA Law "On Television and Radio",
authorizing the broadcast of such programs only at night (from 24.00 till
6.00).

The draft of the bylaw was placed on the NCTR website, as well as discussed
by the heads of Armenian TV companies on February 4. According to the
information of the website of the broadcast regulatory body, all the
interested persons could present their proposals to the document until
February 8.

As regards the content of the draft, if the criteria, defining erotic,
violence, horror and cruelty, are overall in accordance with the
conventional standards, then some descriptions of what could negatively
affect the minors, cast on doubts. For instance, what are the indications to
determine "a distorted, inadequate coverage of historical events and
present-day life", or "humiliation and discredit of spiritual, cultural
values, and prominent representatives of the nation"? And what should one
mean by the restriction on "imitation of drug-addicts and alcoholics"?

These concerns gain more actuality, as the regulatory body has so far failed
to followup adequately the evident violations of the broadcast legislation
in such spheres, like coverage of electoral campaigns, advertisement,
broadcast language, etc. So how NCTR (or another authorized body) is going
to apply the abovementioned blurred restrictions, which assume a broad and
subjective interpretation?!

INVESTIGATION ON THE ATTACK OF NVER MNATSAKANIAN WITHHELD

The investigation on the case of attack on Nver Mnatsakanian, the author and
the host of "Perspective" program cycle of "Shant" TV company, is withheld,
as informed the Head of RA Police Alik Sargsian at a press conference on
February 10. As it has been reported, on May 6, 2009 about midnight two
strangers, who were waiting for Nver Mnatsakanian to come back from work,
attacked him at the entrance of his house. Giving blows to the journalist
and knocking him off his feet, the assaulters escaped. Criminal proceedings
were instituted by Mashtots Department of Yerevan Police on Point 3 of Part
2 of Article 113 of RA Criminal Code ("Intentional Average Health
Injuries"). In the course of investigation the police had arrested two young
men, but the version about their involvement in the crime was not affirmed
(see YPC Weekly Newsletter, September 3-10, 2009).

As the Press Service of RA Police told YPC, the withdrawal of the case is
conditioned by the absence of identification of assaulters.

RA CONSTITUTIONAL COURT REVOKED THE COMPLAINT OF FOI CENTER

On February 5 RA Constitutional Court released the ruling on the compliance
of Articles 151 ("The Order of Examination of Cases on Bringing to Justice")
and 152 ("Requirements to Applications for Bringing to Justice") of the RA
Administrative Procedure Code with the Main Law. As it has been reported, on
September 9, 2009 the respective complaint was submitted by the Freedom of
Information Center. The reason for filing the Constitutional Court became
the inconsistent application of Articles by the judges while examining cases
on violations of information right (see YPC Weekly Newsletter, September
3-10, 2009).

According to the decision of Constitutional Court, Articles 151 and 152 of
Administrative Procedure Code are in compliance with the Main Law. At the
same time, the Court noted that the issue raised by FOI Center deals with
the imperfection of the legislation and can be overcome by amending the
Administrative Procedure Code.

"MEDIA AND ADVOCACY" BOOK ISSUED

A book, titled "Media and Advocacy", was issued. The book is published by
Committee to Protect Freedom of Expression within a project supported by
Open Society Institute Assistance Foundation-Armenia and Government of
Netherlands. The brochure includes a report on situation with regional
media, analysis of the expert survey data on freedom of local and national
media, the Committee annual report on violations of rights of journalists
and media in Armenia in 2009. The book is issued in Armenian, English and
Russian under one cover.

When reprinting or using the information above, reference to the Yerevan
Press Club is required.

You are welcome to send any comment and feedback about the Newsletter to:
[email protected]

Subscription for the Newsletter is free. To subscribe or unsubscribe from
this mailing list, please send a message to: [email protected]

Editor of YPC Newsletter – Elina POGHOSBEKIAN
_____________________________________ _______
Yerevan Press Club
9B, Ghazar Parpetsi str.
0002, Yerevan, Armenia
Tel.: (+ 374 10) 53 00 67; 53 35 41; 53 76 62
Fax: (+374 10) 53 56 61
E-mail: [email protected]
Web Site:

RA PREMIER RECEIVED IMF DELEGATION

news.am
Feb 10 2010
Armenia

On February 10, RA Prime Minister Tigran Sargsyan received the
delegation of the International Monetary Fund (IMF) headed by Mission
Cheif to Armenia Mark Lewis.

Sargsyan informed the IMF delegation of the economic situation in
Armenia, as well as prospects of short- and long-term development,
RA Government press service informed NEWS.am.

The sides also discussed further cooperation between Armenia and IMF,
as well as other issues of mutual interest.

HAMRA HOTELS CHECKS IN TO ALTERNATIVE GROWTH MARKETS
By Sean Davidson

Emirates Business 24/7
Feb 10 2010
UAE

With an eye on driving business in and from emerging markets that few
have dared to explore, Ras Al Khaimah’s Hamra Hotels & Resorts remains
bullish on growth. It hopes to add more charters into the emirate and
is confident the addition of more rooms to its portfolio will not
dilute profits. Nikolaos Chatzipetros, Vice- President Operations,
Hamra Hotels & Resorts, speaks to Emirates Business.

What occupancy levels are you experiencing at the moment? How did it
fare last year?

Within our group, the occupancy is between 60 and 70 per cent. On the
weekends it’s much higher. Our convention centres drive a lot of
business on the weekends and Dubai contributes a significant amount of
this. Typically, we experience an influx from Thursday afternoon to
Saturday afternoon. We did extremely well last year. Of course, the
crisis affected us, especially in the last quarter. But we see
rebounding of the business right now.

Have you moved away from your traditional strategies to drive business?

Yes. We are seeking alternative markets to fill the room nights we
have. Business for the past 10 years was coming mainly from specific
areas locally and specific countries from Europe. Now we are looking
at other countries to not only tackle the crisis but also have a nice
and healthy mix of market segments. These are existing markets that
have not been accessed by many others. They are new, opening markets
that have visa restrictions in other areas such as Europe and at the
same time they have disposable income. We’re talking about countries
such as Kyrgystan, Kazakhstan, Nigeria, Turkmenistan and those that
belong to the Commonwealth of Independent States. And of course, we
are also focusing on specific segments coming from well-known markets
such as Germany.

Has it been tough bringing people to your properties in Ras Al Khaimah?

Not really. The distance from Dubai is only 45 minutes and that has
worked to our benefit. We have pristine beaches, a safe environment
and all the facilities and activities that travellers would like to
have. At the same time, we also have the Um Al Quwain airport so if
somebody would like to experience skydiving or have pilot licenses, he
can do that too. We have water sports and slides going live in two
months. So we have the right mix.

That’s all well, but other emirates offer the same mix. Did this mean
competing on price?

We are definitely competing on price. As operators, we are trying to
be very flexible and competitive. It would not be realistic to
maintain the prices we had a few years ago. But we didn’t drop our
rates considerably because that is against our philosophy. We added a
lot more value instead.

What projects do you have in the pipeline?

We are looking at projects locally and internationally. Through our
sister company Rakeen, we are active overseas. We own these projects
and have international companies as operators. We are increasing our
portfolio and you will see more development in 2010. Our subsidiaries
have projects in Georgia. We own the Sheraton there. We have another
project planned in Georgia outside Tbilisi. In Congo, we are operating
a hotel under the Radisson hotels name. We have a residential and
hotel mix-use project in Kyrgystan. And we are constantly looking for
other opportunities. As a land bank, Rakeen has more than a dozen
locations in order to have it master planned. At the moment, we have a
huge shopping mall under construction in Yerevan, Armenia, and another
mall in Georgia. We are looking for potential sites to build shopping
malls because at the end of the day it’s a matter of characteristics.

In some countries, it’s too cold in the winter and too hot in summer
so a shopping mall is a perfect opportunity for an area that has a
stable and growing economy and opportunities we can capitalise on.

These are the areas we are looking to invest in.

How crucial will a fully functional airport and airline in RAK be to your plans?

It would be very beneficial and that is something that is being looked
at. Soon we will have solutions and announcements. Everything is
moving in the right direction. The best scenario is to have an airline
that brings an influx of clients. At the moment, the airport is
functional for charters who we have deals with. We hope to have more
frequency with the charters.

What are your projections for this year?

We expect growth this year. Not only in the occupancy but also with
the properties themselves. The room nights will increase because of
the number of hotels we are opening. So our room count will definitely
grow. It’s hard to put a figure to it because we are constantly
discussing several deals and projects.

PROFILE: Nikolaos Chatzipetros Vice-President Operations, Hamra Hotels & Resorts

Before he was appointed to this present post, Chatzipetros was general
manager of Al Hamra Fort Hotel & Beach Resorts. And prior to moving to
the UAE, he worked in different capacities for various hotels in the
US, Italy, Greece, Caribbean and Switzerland as well as for luxury
cruise liners.

ADB IS VERY PLEASED WITH THE COLLABORATION WITH ARMENIA

ArmInfo
2010-02-10 12:29:00

Armenia became a member of the Asian Development Bank (ADB) in
September 2005. Armenia holds 10,557 shares or 0.30% of the capital.

Arminfo News Agency interview with Areg Barseghyan, the ADB Senior
Country Coordination Officer for Armenia

We would like to know how the ADB Management assesses its collaboration
with the Armenian Government. What is the overall amount of loans
extended and how are ADB programs being implemented?

ADB is very pleased with the collaboration with Armenia. All our
programs are working well and we are impressed by the professionalism
shown at all times by the project agencies and the people working
in them.

Our existing loan portfolio has reached USD $164 million, but we have
approved close to $500 million for future investments, particularly
in the area of transport infrastructure.

What will be ADB’s largest loan program in 2010?

We will work with the Government on the rehabilitation of the
North-South Road Corridor Investment Program. We have already made
available $500 million towards it. This is a very important program.

It improves connectivity between cities and towns in Armenia, but
also with neighboring countries. It is part of a transport corridor
that connects Armenia to Georgia and its two ports of Poti and
Batumi. It gives Armenia access to the Black Sea. Other international
organizations such as JICA, World Bank, EBRD, and the European
Investment Bank have expressed interest in helping with the program.

We are very proud to partner with Armenia on such important investment.

The Government has announced that some sections of this road will be
tolled. Why is this needed, and is this an ADB condition?

The Government wants to engage private investors in as many projects
as possible. ADB supports this approach, although we never made it a
precondition for our finance. There are various options for engaging
private investors, one of which is tolling. . Many countries around
the world follow this approach, several with considerable success.

Can we expect that 2010 will be the peak of ADB’s investment in
Armenia?

ADB is in Armenia for the long-term. This means we will remain engaged
as and when we are needed. In some years we will be called upon to
provide more finance than in others. Our approach is basically to be
responsive and responsible. In general, we expect our portfolio to
grow in years to come.

What are ADB projections of the macroeconomic situation in Armenia
in 2010?

We agree broadly with the Government’s projections. These are also in
line with those shared by other agencies, in particular the IMF. There
is clearly a turnaround and this is good.

ADB has also given a grant to support the preparation of the railway
project. The Armenian authorities are hopeful that ADB will be able to
co-fund it. Has this possibility been considered by ADB headquarters?

We will help prepare a feasibility study for the project and if
this shows the proposed investment to be sound, we will consider
co-financing it with the Government and possibly other agencies. It is
a major investment and we will need to partner with others. In general,
ADB likes railway projects. They complement other transport modes
and can be quite effective in terms of the impact on the environment.