Author: Kamalian Hagop

Tigran Sargsyan: Armenia has accumulated enough financial safety margin
to counteract consequences of world economic crisis

2008-12-30 22:48:00

ArmInfo. Armenia has accumulated enough financial safety margin to
counteract consequences of world economic crisis, Prime Minister of
Armenia Tigran Sargsyan told representatives of some local news
agencies. In response to ArmInfo’s question about anti-crisis measures
envisaged for 2009 and the model of macroeconomic regulation of crises,
T. Sargsyan said that like the government of any other country, the
Government of Armenia has several scenarios of developments on the key
macroeconomic indicators and each scenario has an action plan. He said
the key task of the government is to evaluate the internal potential of
economy, the private sector, to meet new challenges. In this aspect,
the premier said, there are several factors able to successfully
counteract challenges. First of all, it is a private sector that has
accumulated serious potential over the last ten
years, material and financial reserves and ability to work in
conditions of market economy, uncertainty and sharp market
fluctuations. The second factor is connected with the country’s
readiness for challenges from the point of view of reserves and
possibilities. The premier is sure that due to the reasonable
macroeconomic policy of the government for the last ten years, Armenia
has accumulated enough financial safety margin and tangible20reserves of
own funds at the Central Bank amounting to $300 million.

‘These funds will make its possible fulfilling the budget for 2009
irrespective of tax revenues>, Tigran Sargsyan said. Among key factors
of financial safety margin, the premier mentioned the low level of
internal debt in the ratio to GDP (about 17%) and the envisaged low
budgetary deficit in GDP ` 0.8%. This makes it possible spending big
funds not fearing for the negative influence on macroeconomic
indicators. The premier said the anti-crisis program of the government
mainly aims to sharply increase infrastructure costs. For instance,
construction of roads, energy, water supply, and irrigation facilities,
as well as disaster zone rehabilitation. Thus the Government intends to
invest in infrastructure projects in energy sector nearly $300 million,
in water supply and irrigation sector – nearly $300 million, in
large-scale construction in the disaster zone – about $250 million on
the funds of the budget, government reserves and the World Bank, Asian
Development Bank, credits from other sources. Tangible funds will be
invested also in construction and reconstruction of the highway linking
Armenia and Georgian town of Batumi.

Asked about the inflation scenario prime minister said that in the
conditions of the anti-crisis actions on stimulation of growth the
policy of the government will be ‘extensive in connection with supposed
deflation processes’. ‘The inflation=2
0level in November and December has
never been so low as in 2008. We think that the inflation potential
that was fixed at the beginning of 2008 and was stemming from the world
financial and trade markets (in 2008 Armenia imported 70% of inflation)
has sharply fallen because of prices reduction at the world markets,
reduction of bread and bread products, wheat and fuel and lubricants
prices. This creates favorable background for the extensive policy
which will be conducted by the government. That is to say, the
macroeconomic parameters which were involved in 2008 were also creating
coefficient of safety to reject negative consequences of the financial
crisis. This had and still has a serious anti-crisis element’, –
Armenian premier said. He also added in spring when negotiating with
the IMF and the WB the government fixed the circumstance according to
which if to follow strictly the planned macro-economic indices this
will create favorable conditions for prevention of the negative
consequences of the financial crisis. Moreover, sharp increasing of the
indices on tax collection was also of great significance in this
context. ‘We increased the final indices on the tax revenues threefold
by this correcting the budgetary revenues because of the growth of the
predicted index of the GDP. But at the dame time we decreased budgetary
expenses. Increasing revenues and decreasing expenses we have sharply
increased financial potential of the state’
, – he said.

Asked about the macro-economic indices for 2008, Sarkisyan replied the
current year will be finished with good marco-economic indices, the
budget will be fulfilled and there will be no non-fulfilled expenses.
Inflation will be within the frames of the predicted level. ‘In fact,
all these marco-economic indices were a serious ground for the rating
agencies Moodys Investor Servise and FitchRatings, which despite all
the challenges and problems increased rating of Armenia in 2008. ‘This
is very much important that the agencies correctly assessed as the
steps of the government were right. We shall not have the double-figure
growth of GDP this year. This is conditioned with sharp falling in the
mining industry and much reduction of the growing rates in
construction’, – the premier said. He is sure that the state support
programmes of the enterprises in 2009 will neutralize negative
consequences of the world financial and economic crisis.

Family Blames Insurance Company for Teen’s Death
Monday , December 29, 2008

LOS ANGELES – The family of a 17-year-old leukemia patient has sued health
insurance giant Cigna Corp. for her death in 2007 after the company initially
refused to pay for a liver transplant.
The lawsuit filed last week in Los Angeles County Superior Court by the
family’s attorney, Mark Geragos, alleges breach of contract, unfair business
practices and intentional infliction of emotional distress. The suit accuses
Cigna of delaying and rejecting valid claims, which resulted in the wrongful
death of Nataline Sarkisyan.
The Philadelphia-based insurer eventually approved the transplant after
Sarkisyan’s family held a rally outside Cigna’s suburban Los Angeles office.
Nataline, however, died hours after the approval was secured.
Chris Curran, a spokesman for Cigna, said the company empathizes with the
family but feels the lawsuit is without merit. Curran said Cigna volunteered to
pay for the procedure out of its own pocket and not the employer’s.
"This decision was made despite the fact that Cigna had no obligation to do
so and despite concluding, based on the information available, that the
treatment would be unproven and ineffective and therefore experimental and not
covered by the employer’s benefit plan," Curran said, reading from a statement.
But Charles Idelson, a spokesman for the California Nurses Association, said
insurance companies are "in business to provide profits for shareholders, not
to provide care."
"Nataline Sarkisyan’s case serves as a tragic poster child for everything
that’s wrong with our insurance based health care system," he said. "Why did it
take public humiliation for Cigna Corporation to approve a transplant?"
Nataline was diagnosed with leukemia at 14 and received a bone marrow
transplant from her brother the day before Thanksgiving 2007. A complication,
however, caused the teen’s liver to fail.
The family had asked Cigna to pay for a liver transplant but the insurer
refused, calling the procedure experimental.
In a subsequent letter to Cigna, four doctors from Mattel Children’s Hospital
at UCLA Medical Center appealed to the insurer to reconsider. They said
patients in similar situations who undergo transplants have a six-month survival
rate of about 65 percent.
The insurer eventually reversed the decision while about 150 nurses and
community members rallied outside its office in Glendale.
By this time, however, the teen had fallen into a vegetative state and was
taken off life support. She died within the hour.

U.S. AMBASSADOR UNDERLINES IMPORTANCE OF HOLDING OBJECTIVE AND PUBLIC TRIAL ON MARCH 1-2 CASES

Noyan Tapan

Dec 19, 2008

YEREVAN, DECEMBER 29, NOYAN TAPAN. The results of the investigation
into the criminal case on the March 1-2 events in Yerevan conducted
by the Special Investigation Service, as well issues related to the
trial and its delay were discussed at the December 29 meeting of the
RA prosecutor general Aghvan Hovsepian and the U.S. ambassador to
Armenia Marie Yovanovitch.

The prosecutor general presented the results of the investigation and
some statistical data, noting that during the investigation, charges
were brought against 140 people, materials on 111 people were sent
to court, and criminal prosecution of 26 people was stopped and the
criminal case with respect to them was quashed. 3 persons currently
have status of accused persons in the criminal case, and a written
undertaking not to leave Armenia was chosen as a precautionary measure
for them. Another 5 accused persons are wanted by the police. There
are no persons under preliminary arrest.

Out of 90 criminal cases on 111 people sent to court, sentences were
passed on 87 criminal cases of 101 people: five were acquitted, the
criminal case on 1 person was quashed due to reconciliation with the
victim, a fine as punishment was imposed on 5 persons, 38 were given
a suspended sentence and put on probation, and 52 were sentenced
to imprisonment. Court acts were not made regarding 10 persons in 3
criminal cases, and the trial of 7 persons in 1 criminal case is now
at the initial stage.

3 deaths were recorded as a result of using "Cheryomukha 7" special
weapon by police during the mass disorder. The investigators revealed
that this special weapon was used by 4 policemen, however, according to
Armenian experts, the current methodology of expert examination does
not enable to identify the special weapons used. The RA prosecutor
general has applied to the OSCE, the UN, the U.S. embassy in Armenia,
the CE Commissioner for Human Rights Thomas Hammarberg, and Russia
with the request to provide experienced specialists who will help
with the investigation.

M. Yovanovitch underlined the importance of holding an objective and
public trial, ensuring equality for all the sides in the trial and
respect for the rights of the accused persons, and excluding any
violence. "It is important that the final court act be acceptable
and perceptable for Armenian society," she said.

As regards the RA prosecutor general’s request to provide
expert-related help for identification of special weapons used by the
police during the mass disorder, in particular, "Cheryomukha 7" bullets
and guns, the U.S. ambassador said that the U.S. has no such equipment
and methodology that will be useful in elucidation of this issue.

NAGORNO-KARABAKH MUST BE RESOLVED

Hurriyet
Dec 27 2008
Turkey

BAKU – Turkey’s Ambassador to Baku Hulusi Kılıc said late Thursday
"We want the Nagorno-Karabakh situation to be solved right away.

We have waited 15 years, we cannot wait another 15." During a press
conference at the embassy, he pointed out he wanted the situation
resolved peacefully and through international legal channels,
but added: "Turkey’s stance has been clear from the beginning, the
occupation must end."

–Boundary_(ID_LLyjLhHDwov9w1PazZWL7w) —

RA GOVERNMENT APPROVES BILL ON NEW NUCLEAR REACTION CONSTRUCTION

PanARMENIAN.Net
25.12.2008 18:27 GMT+04:00

/PanARMENIAN.Net/ The Armenian government has approved a bill on
construction of a new nuclear reaction. The bill was developed on
the basis of the law "On secure use of atomic energy for peaceful
purposes."

The government also approved the list of companies eligible for the
construction tender and the composition of an interdepartmental tender
commission, the government’s press office reported.

NO GAS FOR ARMENIAN VILLAGE

Trend News Agency
Dec 23 2008
Azerbaijan

Villagers of the Mets Ayr district of the Lori Marz will solve the
heating issue with firewood this year. The gas tubes made it to the
middle of the village, but no further. The villagers waited for a long
time for the constructors, who never came to the village, reported A1+.

The government has conceded 29,080,000 drams for the gasification
program. According to head of the village Grandpa Arushanyan, the
work remained incomplete because the money wasnââ~B¬â~D¢t enough
and the constructors left.

There was another reason for the incomplete work. The district had
to make a 15% investment in the construction (4,362,000 drams). They
only made the five percent investment.

ââ~B¬Å~[The only issue now is the remaining 10%, which we are unable
to give due to the low budget of the district,ââ~B¬Å¥ says village
head of Mets Ayrum Grandpa Arushanyan. The village head plans on
finding sponsors to solve the issue. Grandpa Arushanyan believes that
the government will make concessions if the district makes investments
and the work will be completed.

–Boundary_(ID_sYDJGPEc6J59xR6V/JJ3kA) —

RECEPTION FOR JOURNALISTS AT THE PRESIDENT’S OFFICE
Karen Ghazaryan

"Radiolur"
23.12.2008 15:22

On the occasion of Christmas and New Year, President Serzh Sargsyan
today invited heads and representatives of mass media to a reception
at the President’s Office.

"Let 2009 be a year of success, let us work together in 2009 to lead
our country along the path of development. I wish health and happiness
to you and your families, and a growing audience to your media,"
Serzh Sargsyan said.

The President of Armenia wished that the number of marriages and
joyful events increases in 2009.

ALIYEV DYNASTY WILL LIVE ON AND PROSPER
Karine Ter-Sahakyan

PanARMENIAN.Net
20.12.2008 GMT+04:00

Indeed, why should Ilham Aliyev let go the reins of power in a country
that was established for him by his father Heydar Aliyev, who almost
incessantly ruled Azerbaijan from 1969 up to his death in 2003.

At last happened what was long foreseen to happen in Azerbaijan;
Parliament "asked" Ilham Aliyev to become a life-term President
of the country. Though, that was all wrapped up in "democratic"
package. On December 18 Azerbaijani Parliament (Milli Medjlis) made
a decision to send the Draft on Holding a Constitutional Referendum
to the Constitutional Court of Azerbaijan with the aim to receive
"Legal Opinion" on introducing changes into the Constitution.

/PanARMENIAN.Net/ The major aim of the amendments is to lift the
restriction on electing as a president one and the same person more
than twice successively. President Aliyev wasn’t able to refrain and
chose the way as Islam Karimov and Nursultan Nazarbayev, as well as the
emirs and khans of the East. Indeed, why should he let go the reins of
a country that was established for him by his father Heydar Aliyev, who
almost incessantly ruled Azerbaijan from 1969 up to his death in 2003.

The amendment to the Constitution is quite distinct: in case the
country is at war presidential elections are postponed till the end of
the military operations. This decision is made by the Constitutional
Court of Azerbaijan on the basis of an application sent by the state
body responsible for holding elections (referendum). In other words,
we should realize that in order to convert a story into reality
Baku is ready to provoke a "short-lasting triumphant war" at any
moment. And all this despite the fact that we all had an experience
of such a war and are well aware of its outcome. Is it possible that
Baku believes Karabakh people will wait for the Russian or any other
forces to arrive in order to defend their land? But Ilham I won’t
obviously decide on a military solution to the Karabakh problem as
in that case he would have to waive the perspectives of preserving
power. Like his father, he is not going to hand down his son Heydar
II a country in chaos and disorder. He perfectly knows what it is,
and the Azerbaijani elite don’t need new gorgeous complexes.

Opposition forces and civil society institutes of Azerbaijan, however,
are against the suggested amendments to the Constitution. In the words
of Democratic Party Leader Sardar Jalaloglu, six opposition parties
and a number of leading NGOs held a round table and arrived at the
decision to fight together against execution of the amendments. "If
the amendments should be adopted Azerbaijan will suffer the same
fate as the African countries where reigns the odious dictatorial
regime. Opposition intends to launch a campaign on gathering
signatures and organize mass protest actions against the Constitutional
amendments," Jalaloglu noted.

However, all these protest actions will lead to nothing and the
hopes on "democratic" Azerbaijan will remain just hopes. Strangely
enough neither the USA nor the EU has yet reacted to the initiative
of Azerbaijani parliamentarians. On the other hand, it can be assumed
that they will display a neutral reaction. Be it as it may, it is
more preferable to have a predictable leader rather than one like
Saakashvili, an alleged democrat.

Meanwhile the image of a kind tsar or, that of a khan, call it as you
wish, is being consolidated by quite available means. The other day the
first volume of "Ilham Aliyev: Development is our goal" was published.

"A fabulous future awaits Azerbaijan… We have great plans, great
perspectives and a great future. And in order to convert all these
plans into a reality Azerbaijan should keep to the policy of Heydar
Aliyev. The Azerbaijani people made their choice by voting for this
policy in 1993. There is neither an alternative to this policy, nor
can it ever be. Any alternative will definitely get Azerbaijan into
trouble… We are going to continue the policy of Heydar Aliyev; we are
going to develop Azerbaijan into a rich and powerful state… We want
every region of our country to develop. Even the smallest villages,
settlements and districts are going to advance… This is our goal. I
am sure this is the aim and plan of the every Azerbaijani citizen".

The preface goes: "For four years on end our country has been the
first in the world by the rates of economic growth. International
authority of Azerbaijan has advanced even further and today it is a
country that carries out an independent policy, holds its position,
and has become a reliable ally and a recognized leader in the South
Caucasus Region. It’s the country that till recently used to import
gas and pressed towards attracting international investments,
while today she herself endows energy security in Europe, makes
investments abroad and supports herself. These are facts that make
proud every patriotically-disposed Azeri. They once more prove that the
above-mentioned words have long become a vivid reality". Here is the
prospering Azerbaijan! There is absolutely no hint that in conjunction
with the abrupt cut of prices on oil next year Azerbaijan will have
to resort to the help of international financial institutes. Neither
is there a hint of Azeri soldiers hanging themselves, captives being
reluctant to return to their homeland, to dynamically developing
Azerbaijan. As for the numerous murders, they are a topic we don’t
absolutely feel like discussing…

ARMENIA’S ELECTRIC NETWORKS SAYS READY FOR WINTER PERIOD

ARKA
Dec 22, 2008
YEREVAN

Electric Networks of Armenia (ENA) is ready for the winter period,
reported ENA Director General Yevgeni Gladunchik.

"Investments into the company hit a record high this year, allowing us
to get ready for the winter and get positive feedback from INTER RAO
UES," he said, adding INTER RAO UES granted "winter-time passports"
to all its branches in Armenia in November.

"Our commission has surveyed our branches to eliminate errors,"
Gladunchik said. "With the deadline of repairs growing closer, the
company can already state it is ready for the winter period."

Subsidiary of Russia’s electricity trader INTER RAO UES (owned
by Russia’s atomic energy agency Rosatom), the company owns 220
kW-110,000 W electric networks in Armenia and is the country’s
exclusive electricity distributor.

The company owns 323 substations and serves 838,000 customers. ENA’s
sales output reached $237mln last year, with investments totaling
$35mln.

The company forecasts $275mln sales output and $38mln investments by
end-2008.

CAMPAIGN WE APOLOGIZE TO ARMENIANS CAN PROVOKE POLITICAL CRISIS IN TURKEY: TREND NEWS COMMENTATOR
Rufiz Hafizoglu

Trend News Agency
Dec 19 2008
Azerbaijan

Since Turkish President Abdullagh Gul’s visit to Yerevan to ‘watch’
football match between Turkish and Armenian teams, the events have
been developing at a faster pace and they will keep on developing in
this way further. Armenia not only prepared for Gul’s visit, but also
determined which political steps to take after this visit. Different
position of the current Islamist government of Turkey towards the
European Union unlike that of previous nationalist government and
insistence on the EU admission encouraged Armenians to make more
efforts to restore ties between the two countries.

Strive of the governing Justice and Development Party (AK Party)
is due to not only numerous economic problems, but also unsolved
problem of head-dresses at universities. AK Party intends to solve
this problem under Human Rights Convention by securing full-right
EU membership. All these problems can be solved only through EU
membership. It is already known that EU with its "Christian club",
so called by the Turkish Prime Minister Recep Tayyip Erdogan once,
will serve interests of Armenia, rather than Turkey.

It is noticeable that at the moment the EU membership is held by
France, which is considered second homeland of Armenians. Greece will
assume EU chairmanship in the second half of 2009 who will display
its hard stance towards Turkey. Armenian diplomats understand it very
well and given all these realities they are willing to establish ties
with Turkey ‘in accordance with friendly and good-neighbor’ principles.

Soon the ‘dialogue’ and policy of ‘good-neighborhood’ will yield
results. As a more active side in this regard, Turkey made a gesture
towards Armenia and planned to open Istanbul-Yerevan flight and
departments of Armenian language and culture in Trakiye and Nevshehir
universities. On its part, Armenia, as a ‘fraternal’ move, removed
"Armenian genocide" from the agenda to let relations develop and
announced that Armenia does not have territorial claims to this
country.

These events are likely to lead to partial implementation of a plan
to open borders.

As to the campaign We Apologize to Armenians for the "genocide"
committed during Ottoman empire launched by the Turkish
‘intellectuals", it caused more sensation in the country than it
was expected.

Officials and political parties of the country expressed their sharp
attitude against this company and even criticized AKP and President
Abdullah Gul. However, statements of Prime Minister Erdogan and
that of President Gul differed to a great extent. President Gul
said: "Turkey is a country where everyone has a right to express
views freely." However, Prime Minister said bad many intensions
stand behind this campaign. Erdogan said those calling themselves
‘intellectuals’ seek to instigate trouble and compel people to
conflict. ‘Intellectuals’ who launched this campaign have links with
Ergenekon terrorist organization, he said.

Different opinions of two officials on the same issue demonstrate that
there are differences between the two Turkish top-rank officials
regarding Armenian issue. Gul’s bad attitude to We Apologize
campaign made mainstream opposition more active. Doubtless, the
forces dissatisfied with the governing party will take advantage of
it which can deteriorate situation in the country. Willingness to
adopt an appeal on behalf of parties included in the parliament
to express parliament’s opinion to this issue provoked sharp
criticism by pro-kurdish Democratic Community Party which proves all
above-mentioned. Development of events in this way and increased
efforts of the Armenian lobby can cause a new internal crisis in
Turkey.