Author: Karabekian Emil

LEVON ARONIAN LACKS 1 POINT TO REACH LEADERS

Panorama.am
12:31 19/08/2009

In the ninth round of Jermuk 2009 FIDE Grand Prix Vassily Ivanchuk
ended his set in draw with Pavel Eljanov, though if he had managed
to win he would become the sole leader of the tournament. Sergey
Karjakin has also ended in draw with Ernesto Inarkiev.

After the ninth round Vassily Ivanchuk, Rustam Kasimjanov and Peter
Leko have 6 points and lead the tournament.

Levon Aronian, Yevgeni Alekseev, Pavel Eljanov and Serey Karjakin
have 5 points and share 4-7 horizontals. Boros Gelfand and Etienne
Bacrot follow them with 4.5 points. Dmitry Yakovenko has 4 points,
Vladimir Hakopian and Gata Kamsky – 3.5; Ivan Cheparinov – 3 points
and Ernesto Inarkiev – 2 points.

AZERBAIJAN AUTHORITIES INTERROGATE MUSIC FANS IN EUROVISION PROBE
Sean Michaels

guardian.co.uk
Tuesday 18 August 2009 09.50 BST

Forty-three Azerbaijani music fans who voted for neighbouring Armenia
in this year’s Eurovision song contest have been questioned about their
‘ethnic pride’

AySel and Arash perform the Azerbaijan entry for the Eurovision song
contest 2009. Photograph: Sergei Karpukhin/Reuters

Authorities in Azerbaijan have reportedly brought in dozens of music
fans for interrogation, questioning their patriotism after they voted
for Armenia in this year’s Eurovision song contest.

Azerbaijan’s national security ministry has allegedly spoken to each
of the 43 Azerbaijani who voted for Armenian duo Inga and Anush,
singing Jan Jan, rather than AySel and Arash’s Azerbaijani entry,
Always. Though officials told the BBC that they had "merely invited
[voters] to explain" their votes, one fan described a more robust
interrogation.

"They said it was a matter of national security," Rovshan Nasirli told
Radio Free Europe. "They were trying to put psychological pressure
on me, saying things like, ‘You have no sense of ethnic pride. How
come you voted for Armenia?’"

The 22-year-old said that he voted for the Armenian entry because it
sounded even "more Azeri" that Azerbaijan’s own submission. Always,
which came third, was a duet between Azeribaijan’s AySel and
Iranian/Swedish singer Arash. "I voted for Armenia to protest the
fact that Arash was representing Azerbaijan," Nasirli said.

Relations are tense between Azerbaijan and Armenia due to the ongoing
dispute over Nagorno-Karabakh, where the countries fought a war in
the early 90s. The mountainous region, mostly occupied by ethnic
Armenians, is formally under Azerbaijani jurisdiction. Though the
two countries seemed to be approaching consensus in negotiations
earlier this year, this recent Eurovision controversy has helped fan
the flames of resentment.

Turks interrupt Christian worship at Monastery
Aug 18, 2009
by Pontosworld.com

Once again, Pontic Greek pilgrims from many parts of the world
congregated at one of the holiest places of worship, the Monastery of
Panagia Soumela in Turkey. It was apparent from the outset however
that the pilgrims weren’t welcome this year. Priests were ordered to
remove their crosses and holy garments at the airport upon entering
the country, boatloads of pilgrims from Georgia were prevented from
disembarking at ports, and the passage of another eight busloads of
pilgrims from Greece were hampered in their approach to the monastery
by Turkish authorities.

The 15th of August is the holiest day of the Pontic Greek calendar. It
is the one day of the year that descendants of Pontic Greeks who lived
for centuries in Turkey, can revisit the Holy monastery and pay their
respects at the monument in a peaceful manner.

For some reason this year, Greek authorities were pre-warned by
Turkish authorities that certain public performances would not be
allowed. The Greek response in particular by Mr Ivan Savvidis on
behalf of the Council of Greeks Abroad, was that the forced removal of
religious emblems and dress, as well as the banning of peaceful
worship at the Christian monastery was `a violation of the individual
rights of a person’.

The religious service did take place in the presence of a crowd of
followers, but was interrupted by the director of the Museum Nilgün
Yılmazer, as well as officials who poured water over candles and
removed them in an attempt to end the service. Considering the yearly
service has been taking place at the monastery for a number of years
previous to this, the interruption was bizarre in that it created
precedent with regards to such peaceful gatherings taking place in
Turkey in the future.

The treatment of religious minorities in Turkey is one of the main
stumbling blocks for Turkey’s bid for EU membership. By coincidence or
not, on the very same day which these bizarre events at the Monastery
took place (15/8/2009), Prime Minister of Turkey Recep Tayyip
ErdoÄ=9Fan met with Turkey’s religious minority leaders including
Greek-Orthodox Patriarch Bartholomew in an effort to pass reforms on
the issue of minority rights. One can only hope that reforms are
passed and actually followed, so that events such as these are not
repeated.

A video of the interruption can be viewed here
The Holy Monastery of Panagia Soumela

The Soumela Monastery was founded in 386 A.D by two Athenian monks and
lies on a steep cliff face on mount Mela in the Trabzon province of
north-eastern Turkey. The monastery has been a place of worship for
Pontic Greeks for thousands of years and is the home of the miraculous
icon of Panagia Soumela. The monastery is made up of a church, several
chapels, and at one stage housed 72 cells, guest quarters, an
aqueduct, icon room, library and dormitories. As with other Christian
places of worship in Turkey, the monastery is now a museum and
attracts a huge number of tourists which provides a lot of income to
the operators. The monastery was abandoned in 1923 following the
forced expulsion of Pontic Greeks in accordance with the Exchange of
Populations between Greece and Turkey. Restoration work has been
carried out on the historic Pontic monastery under the responsibility
of the Turkish Ministry for Culture. Reports indicate that the works
have been to excessive lengths, with many cracks appearing thereby
disfiguring the monument and detracting from its religious character.

TURKISH NATIONALISM STARTS AT SCHOOL-AGE

/PanARMENIAN.Net/
13.08.2009 19:41 GMT+04:00

/PanARMENIAN.Net/ "In terms of perceiving Armenian-Turkish
rapprochement, Turkish society can be divided into 3 parts:
nationalists, who have a negative attitude to border opening,
neutral people, and liberals who positively treat the process,"
Turkish Studies specialist Ruben Melkonyan, expert at Noravank
scientific-research foundation, told today a seminar devoted to
"Armenian-Turkish relations: present and past".

Turkish ideology, according to him, starts from a schoolchild’s
oath. Kemal Ataturks slogan saying "I am proud to be a Turk" reflects
religious and national intolerance, Melkonyan said, adding that
nationalists in present-day Turkish society make up a majority.

RASIM MUSABEKOV: APPOINTMENT OF TINA KAIDANOW NOT A GOOD SIGN

/PanARMENIAN.Net/
12.08.2009 16:56 GMT+04:00

/PanARMENIAN.Net/ "Appointment of Tina Kaidanow to the position of
the OSCE Minsk Group co-chair is not a good sign," Azeri political
scientist Rasim Musabekov told Day.Az, commenting on the words of
Matthew Bryza that he will soon be replaced by Tina Kaidanow as US
co-chair of OSCE Minsk Group.

"The U.S. may see some similarities between Kosovo and Karabakh
situations, Azeri political scientist assumes. "But for me it is not
a good sign, because Kosovo was finally separated from Serbia. If
they send OSCE Minsk Group co-chairs of the United States with such
experience and mood here, I do not really like it," he said.

Tina Kaidanow in 2008 was assumed the office of the U.S. Ambassador
to Kosovo. Tina Kaidanow served as U.S. special representative in
Pristina (the capital of Kosovo).

MILITANT CIVIL EGOISM
Naira Hayrumyan

olitics&pid=14905
12:51:45 – 12/08/2009

The opposition affirms that the authorities do not have enough courage
to admit that they have agreed to a disadvantageous version for the
Armenian side of settlement of the Karabakhi issue. In fact, the
authorities have long before acknowledged with the help of statements
of the Minister of Foreign Affairs, or Galust Sahakyan and others,
let alone Mathew Bryza’s "revelations". So, it is the public not
to have enough courage to admit that this is really football, just
instead of a ball, the interests of the Armenian citizens are being
thrown in the field.

The direction, in which the Karabakhi conflict moves, was clear 2
years ago when the first report of the International Crisis Group
was published. But at that time both of the authorities and the
opposition rushed to hide behind a screen of privacy. They said that
not everything is clear, so when the final agreement is announced,
we will make statements. Now everything is clear to the limit, but
each of us would give a lot not to be the bearer of information on
the settlement principles.

That is why everyone pretends that privacy continues: both the
government and the opposition. Levon Zurabyan insists that not all the
details of the settlement are disclosed, as if there is a difference
when the referendum will be held, if only the miserable NKAR will
remain from the current territory of Karabakh. The television is
trying to prove: Matthew Bryza stated that the territorial integrity
of Azerbaijan is the return of the seven districts, and NKAR, they
say, is not included there. And the Armenian society gets reconciled
with the idea that the recognition of the NKR in the territory of
Nagorno Karabakh Autonomous Region is the greatest achievement of
the Armenian people.

In normal countries, people delegate the responsibility for managing
the state and the foreign policy to the elected authorities. But
the delegation of powers does not mean to renounce the control and
responsibility for what happens in your country. Moreover, if the
authorities do not discuss with you its further steps, it even does
not consider important to inform you about its done steps. In such a
situation, self-respecting people, who can assess the reality, stop
looking in direction of the power and start solving their problems
themselves. Militant civil selfishness: that is what can help us. No
one can accuse a person or community of people of defending their vital
interests. On the contrary, it is difficult to understand when a person
is unable to assess their interest, or sacrifices them consciously.

It is obvious that the continuation of the negotiations in the current
format and on the proposed principles is a blatant denial of our
vital interests. And the only way out of this situation is to abandon
the talks. As the former Minister of Foreign Affairs Vardan Oskanyan
stated, if we do not want to surrender the territories and the return
of refugees, we need to abandon the talks. And if the authority can
not find the courage to do so, it needs to say about it to the society
and parties, NGOs, individuals. Moreover, the convenient moment is
approaching – the rotation of the co-chairs of the OSCE Minsk Group
and the possibility of changing the format of the mediators.

TURKEY, THE KURDS AND CYPRUS
By Gene Rossides

Hellenic News.com
?newsid=10560&lang=US
August 11, 2009

An article in the August 2, 2009 Cyprus Mail newspaper described
what it called a "drama under way" regarding Turkey and its Kurdish
problem. It reported that the lawyers for Abdullah Ocalan, the
"imprisoned leader of the PKK insurgents" were going to release on
August 15, 2009, Ocalan�s "road-map" to solve the Kurdish problem.

The PKK is the acronym for the Kurdish Worker�s Party outlawed in
Turkey. After pressure from Turkey, the State Department added the
PKK to its terrorist list. Objective newspapers refer to the PKK as
insurgents or guerrillas. The fact that the PKK has sometimes used
violence against civilians, which should be condemned, does not make
it a terrorist organization like al Qaeda.

PKK actions are not aimed at the U.S. The State Department should
remove it from their terrorist list. They should also reread the
history of the U.S. revolution and Britain�s� referring to the
rebel Americans as terrorists.

The discussion in the Turkish media about Ocalan�s forthcoming
plan has been substantial and very intense. Turkish Prime Minister
Recep Tayyip Erdogan has responded that he will announce his own
Kurdish initiative. It would be real progress for all concerned if
the Turkish government and the Kurdish minority, close to 15 million,
could arrive at a satisfactory agreement.

The Turkish military and paramilitary have killed over 30,000 Kurdish
civilians since 1984. They burned over 3,000 villages and created
over three million refugees. See the article by Eric Rouleau in
the prestigious journal Foreign Affairs titled "Turkey�s Dream of
Democracy," (Nov./Dec. 2000, pages 100-114) for a devastating account
of what Turkey has done to its Kurdish minority. Eric Rouleau was
the Ambassador of France to Turkey from 1988 to 1992.

I doubt that Erdogan will come up with any proposals which would
provide the 20% Kurdish minority with full political, human and
cultural rights as other Turkish citizens have, and political autonomy
for the Kurds in their geographic region in eastern and southeastern
Turkey Erdogan is obviously not going to give the 20% Kurdish minority
the same rights it seeks for the 18% Turkish Cypriot minority, namely,
a veto over all key executive and legislative decisions; control
of 30% of the land; rotating presidency and 30% of government jobs,
among other items. Nor will Erdogan give the Kurds a separate state
such as Turkey has done illegally in Cyprus which no one recognizes
except Turkey.

The Washington Times reported on August 7, 2009 that the Obama
administration has dropped the phrase "war on terrorism," is not
fighting "jihadists" and is not locked in a "global war." John Brennan,
head of the White House homeland security office made these comments
on August 6, in a speech at the Center for Strategic and International
Studies, a Washington think tank and said the Obama administration
is solely in a "war with al Qaeda" and their violent allies. The
semantic change is welcome and should be followed by removing the
PKK from State�s terrorist list.

The Associated Press reported from Ankara on Friday, July 17, 2009,
that Turkey’s Prime Minister Erdogan "compared ethnic violence in
China’s Xinjiang province to genocide, escalating criticism of
Beijing following this week’s killing of at least 156 people —
including Turkic-speaking, Muslim Uighurs."

"These incidents in China are as if they are genocide," said
Erdogan. "We ask the Chinese government not to remain a spectator to
these incidents. There is clearly a savagery here."

So far Erdogan has gotten away with his aggressive remarks–(1) his
attack in January 2009 at the Davos, Switzerland World Economic
Forum against Israeli President Shimon Peres, telling Peres
"You kill people;" (2) his attack against the proposed new NATO
secretary-general from Denmark, Prime Minister Anders Fogh Rasmussen,
because he defended the freedom of speech for the Danish cartoonist
who lampooned the Muslim prophet Mohammed. Instead of being challenged
Erdogan was rewarded with one or two staff positions at NATO. Obama
and the other NATO heads should have challenged Erdogan and considered
suspending Turkey from NATO for its violation of the NATO Treaty by
its aggression against Cyprus, its continuing occupation of Cyprus
and its continuing violation of the Geneva Convention of 1949 by
bringing 180,000 illegal settlers/colonists from Turkey to Cyprus.

The U.S. needs to stop appeasing Turkey. The failure to recognize the
Armenian Genocide, the Greek Pontian and Assyrian Genocides, all part
of Ataturk�s anti-Christian policy, is a national disgrace. The
failure of the Executive Branch to press Turkey to remove now its
43,000 illegal occupation troops and 180,000 illegal settlers/colonists
from Cyprus is harmful to U.S. interests.

The U.S. government in its own self-interest should be pressing
for full political, human and cultural rights for the 20% Kurdish
minority. The late Senator from Rhode Island, Claiborne Pell, and
many others, properly described Turkey�s actions against the Kurds
as genocide.

Community action needed Call and write to your two Senators and
your Representatives and urge them (1) to support recognition of
the Armenian, Greek Pontian and Assyrian Genocides; (2) to call
for the immediate withdrawal of the illegal Turkish troops and
setters/colonists from Cyprus; and (3) to support full political,
human and cultural rights for Turkey�s 20% Kurdish minority.

The Honorable firstname lastname United States Senate Washington,
DC 20510 202-224-3121 (Main Switchboard) The Honorable firstname
lastname United States House of Representatives Washington, DC 20515
202-224-3121 (Main Switchboard) Call and write to President Obama and
Secretary of State Hillary Rodham Clinton and ask them (1) to recognize
the genocides; (2) to press Turkey to remove now the illegal Turkish
troops and setters/colonists from Cyprus; and (3) to press Turkey to
give full political, human and cultural rights to its Kurdish minority.

President Barack Obama The White House 1600 Pennsylvania Avenue, NW
Washington, DC 20500 Tel. 202-456-1111 (Comments) 202-456-1414 (Main
Switchboard) Fax: 202-456-2461 E-mail: [email protected] The
Honorable Hillary Rodham Clinton Secretary of State 2201 C Street, N.W.

Washington, DC 20520 Phone: 202-647-9572 Gene Rossides is founder
of the American Hellenic Institute and former Assistant Secretary of
the Treasury

AT NEW YORK’S DIOCESAN CENTER, COMMUNITY BIDS FAREWELL TO UN AMBASSADOR MARTIROSSIAN

Diocese of the Armenian Church of America

Thur sday, August 6, 2009

On Tuesday, August 4, a farewell reception was held at the Diocesan
Center in honor of His Excellency Armen Martirossian, the Permanent
Representative of the Republic of Armenia to the United Nations,
who will soon become Armenia’s ambassador to Germany.

Organized by the Eastern Diocese and the Fund for Armenian Relief,
the evening was attended by some 100 people, who gathered to thank
Ambassador Martirossian for his six years of service at the United
Nations, and to wish him success in his new position.

Opening the evening’s program, Diocesan Vicar the Very
Rev. Fr. Haigazoun Najarian spoke about Ambassador Martirossian’s
deep faith and close connection to the Armenian Church.

Fr. Najarian said that Ambassador Martirossian will be remembered in
New York’s Armenian community, just as the ambassador will cherish
the memories of his time here.

Dr. Vartan Gregorian, president of Carnegie Corporation of New York,
discussed Armenia’s uncertain situation on the international stage,
tracing the problems posed by the closed borders with Turkey and
Azerbaijan. Given this scenario, he said, it is critical for Armenia
to have diplomats who can articulate its needs and represent its
interests.

"I’m glad he’s going to be our ambassador to Germany," he said of
Ambassador Martirossian. "It will be helpful to Armenia."

Drawing a distinction between short-term aid and long-term investment,
Dr. Gregorian said that Germany and other European Union states should
aim to support such efforts as educating Armenia’s young and developing
the country’s computer, banking, medical, and other industries.

Dr. Gregorian also stressed that the initiative must begin with the
Armenian community in Germany, saying that "charity begins at home."

"I’m amazed at how few Christians support Armenia," he said, adding
that Ambassador Martirossian will need to harness "talent, investment,
and cooperation from the European Union and from Germany."

Archbishop Khajag Barsamian, Primate of the Diocese of the Armenian
Church of America (Eastern), recalled the day in 1992 when the Armenian
flag was hoisted alongside the flags of other countries at the United
Nations, and how Armenia’s UN Mission first opened its office at the
Diocesan Center.

"It was a great privilege, and it will always be a mark of honor,
for the Diocesan Center to have played such a role in our country’s
history," the Primate said.

Members of Armenia’s delegation to the UN have likewise been closely
involved with the Armenian Church and the larger Armenian community
in New York.

"To our own people, Armen has been the kind of ambassador who goes
far beyond his formal diplomatic mandate, to be helpful to Armenians
in whatever way possible," the Primate said. "The Armenian-American
community has been blessed to enjoy Armen’s attention, his activity,
his brotherly advice and goodwill."

"From his earliest days in America, he has felt at home here at
St. Vartan Cathedral, and Armen, Anahit, and their family were always
in attendance at events here and in churches around our Diocese."

But above all, Archbishop Barsamian said, Ambassador Martirossian
"has shown himself to be a master of working within the UN, and with
his colleagues, to advance intelligent and just solutions to the
issues of the day."

"Time and again, on a variety of concerns-genocide acknowledgement,
the status of Nagorno-Karabagh, and others-Ambassador Martirossian’s
constant attention, his firm convictions, and his efforts in public and
in the background, were the keys to a positive and beneficial result."

Guarantors of Armenia’s Future

Nagorno-Karabagh, in particular, has been a priority for Ambassador
Martirossian and his delegation.

"Karabakh won on the battlefields, and we now have to secure our
military victory on diplomatic fields as well," the ambassador said.

He explained that the issue was especially challenging because the
UN charter is designed to deal with international conflicts more
so than with internal disputes. In guaranteeing both the right to
self-determination and the territorial integrity of states, the UN
charter makes it difficult to conduct talks surrounding a question
that falls under both categories.

Most UN member states no longer support Azerbaijan’s claims to
Nagorno-Karabagh, Ambassador Martirossian said, though he acknowledged
that the issue needs continued attention.

"We ourselves are the only guarantor of a decent future for Armenia,"
he said.

Ambassador Martirossian also spoke about the important role played
by the Armenian diaspora, and thanked New York’s Armenian community
for acting as "a reliable partner" in his ambassadorship.

Recalling the many thought-provoking conversations he shared
with clergy and other leaders of the Armenian-American community,
Ambassador Martirossian said he learned a great deal during his time
at the United Nations.

"It is believed that in order to preserve the national identity,
it is the diaspora that needs Armenia.

Although that judgment is correct, it is not comprehensive," he
said. "From my personal experience, I claim that it was the diaspora
that enriched and strengthened my Armenian identity."

"I give my thanks to you and to the people of Armenia, for the times
I have succeeded," he said, adding with characteristic humility,
"and my apologies for the times I have fallen short."

Ambassador Martirossian will begin serving as Armenia’s ambassador
to Germany starting next week.

GERMANY IS SHARPLY INCREASING ITS INTER-GOVERNMENTAL FINANCIAL COOPERATION WITH ARMENIA
Lilit Aslanyan

ArmInfo
2009-08-07 12:22:00

Armenian-German inter-governmental negotiations took place in Bonn
recently.

The parties discussed their plan of action for 2009-2010. Germany
satisfied a number of Armenia’s requests for financing. In 2009-2010
that country will lend Armenia much more than before: 117.5mln EUR
against 74mln EUR in 2007-2008 with part of the money to be granted.

Mr.Gevorgyan, what specific sectors of the Armenian economy will
receive the 117.5mln EUR to be lent in 2009-2010?

As a result of the talks, we have decided to provide Armenia with quite
big additional financing for different sectors of its economy. The
energy sector will receive 41.5mln EUR: 18mln EUR will be lent in
the framework of the second stage of the program in the field of
renewable energy; 1.5mln EUR will be granted for advising. The program
to modernize three plants of the Vorotan Cascade of Water Power Plants
will receive additional 22mln EUR with the total sum amounting to
51mln EUR. As you may remember, in 2008 Germany and Armenia agreed
on 29mln EUR for the Vorotan Cascade program. But later Fichtner
consulting company said that this money was not enough for the program.

Germany will also lend up to 40mln EUR for the repair of water
supply and waste water disposal systems in Gyumri, Vanadzor and
nearby settlements.

This is the second stage of the program to repair water supply and
sewerage systems in Gyumri and Vanadzor. The 25mln EUR lent for the
first stage has not yet been fully spent. The additional financing
will help to fully modernize the systems. Besides, 11mln EUR will be
granted for Caucasus Initiative program.

Much money will be lent for mortgage crediting. During the
Armenian-German inter-governmental consultations in Feb 2009, Armenia
applied for additional 20mln EUR for the program to develop a stable
mortgage crediting market.

During the last talks Germany decided to grant the
application. Presently, the mortgage crediting program of the German
Government is the only long-term source of financing in Armenia.

Besides, Germany has decided to grant Armenia 4mln EUR for the creation
of a bio-sphere reserve on the basis of Shikahogh state preserve. 1mln
EUR will be provided for the development of a program in the field
of environment protection and the conduct of regional conferences. As
compared with other fields, this financing may seem quite small but,
in fact, this is the biggest money ecology has received so far.

This time Germany will not lend money for small and medium-sized
business, unlike the other foreign sources. Why?

Today, SMEs enjoy the biggest financing. They are receiving money from
the Armenian Government, on the one han d, and from the World Bank,
on the other. Presently, a group of Armenian banks are considering
the possibility of borrowing a stabilization loan from Russia. So,
we decided to finance the sectors the other investors are not ready
to finance. However, I would like to remind you that one of the first
programs to support small and medium-sized business in Armenia was
launched by GAF in 1999 with the financial support of KfW.

Mr. Gevorgyan, could you specify the terms and the schedules of
the crediting?

These are not final amounts yet. For example, I have said that the
program to repair the water supply and sewerage systems in Gyumri
and Vanadzor will receive up to 40mln EUR. It means that the program
may receive less as this money will be borrowed from the market,
where the situation is constantly changing. So, the final terms
will be known only when the contract is signed. There will be a big
grant element in this program. The Germany Government will fund the
interest on the loans: our objective is to ensure affordable interest
rates for Armenia and to deepen our cooperation with the country. So,
the more we lend the bigger the funding will be.

As regards the schedules, they depend on a number of factors. First,
the Armenian and German governments yet have to sign an agreement
to be ratified by the parliaments. So, it depends on how quickly the
governments and the foreign ministries will do this work. After that
KfW will sign a credit agreement with the Ministry of Finance and the
Central Bank of Armenia. And, finally, the German-Armenian Fund (GAF)
will see if it is expedient to make changes to the terms considering
the influence of the crisis.

We are going to reduce the number of tranches as each tranche implies
certain transaction expenses. The first tranches for the mortgage
crediting and renewable energy programs will be issued at the end of
this year or the first quarter of 2010, at the latest. As regards,
the Vorotan Cascade program and the project to repair water supply and
sewerage systems in Gyumri and Vanadzor, this money will be provided
only after the conduct of tenders and the development of specific
plans of action.

It is not the first year you have managed KfW programs in Armenia. What
specific changes should be made in the terms of mortgage crediting in
our country? Are you planning to increase the number of participant
banks? High competition could substantially soften the terms of
crediting, couldn’t it?

Irrespectively of any given situation, Germany provides Armenia
with quite soft loans. However, we must not forget about future. Our
credit programs last for three years, at longest. And what will we do
afterwards? I think that it is better to keep the terms stable than
to face difficulties when some three years after the interest rates
suddenly grow by, say, 05%-6%. Even if we revise the interest rates
of our mortgage loans, they must not be much lower than the market
rates as not all the market players are involved in our program and
this may result in certain imbalance.

Usually, priority is given to low interest rates but I believe that
the problem of repayment period is more important. As you may know,
we lend money for five years even though our terms provide for an
opportunity to prolong this period for three years.

As for the banks, they can lend money for 10 years as we encourage
long-term crediting – up to 15 years. We had participant banks who
actively credited for 12-15-year periods. So, as far as any changes
are concerned, I think that we better consider prolonging the repayment
periods. Of course, this will depend on the situation on the market. I
suppose that we should also increase the maximum amount of a loan per
borrower. At the first stage, the maximum amount was 12mln AMD. This
sum stimulates borrowing for repair and modernization but not for the
purchase of a house. So, I think that we should increase the maximum
amount to 18mln-20mln AMD especially as the present financing is much
bigger than the money we had at the first stage.

We are going to discuss this problem with the mortgage market
participants.

However, specific terms will be known only after the contract is
signed.

Today, our program covers eight banks and two cr edit companies but I
believe that it should embrace more organizations. I think that all
credit companies and banks meeting the Central Bank’s requirements
should be allowed to take part in this program.

Mr.Gevorgyan, the participation of new banks and credit companies
in the mortgage crediting program is certainly a good news for
borrowers. My question is how quickly the participant banks will be
able to spend the expected 20mln EUR?

The demand for mortgage loans is still high. But I am not sure that
the 20mln EUR will be spent as quickly as the 12mln EUR lent for
the first stage. Quickness is not our priority. What we really care
for is to supply the market with resources so as to ensure stable,
predictable and long-term offer. I think that 20mln EUR is just as
much as our present-day mortgage market needs.

As you may know, since the beginning of this year the amount of
mortgage lending has decreased mostly due to decline in housing
purchase crediting.

However, the crediting of home repair is actively growing due to
dropping prices of construction materials. There is one more factor:
some construction projects in Yerevan are just 70%-80% ready with
no money left and their contractors are forced to borrow additional
funds. I am optimistic and believe that the recession in housing
purchase crediting will not last for long.

Mortgage lending in Armenia is focused on Yerevan, which is also true
for KfW program. Do you plan to enlarge the geography of lending at
the second stage of your program?

We can hardly expect more active lending in the regions in the
coming years.

In the regions risks are higher as people living in the country have
low or unstable income. That’s why our banks are more conservative
in the regions than they are in Yerevan. Even if they decide to lend
money, they do it at higher interest though, in theory, the regions
should enjoy softer lending terms. That’s why 80%-85% of the mortgage
lending portfolio is concentrated in Yerevan. If is for the banks
to decide whom and where to lend money and nobody can force them to
change their "geographies."

KfW lends money all over Armenia. Even more, we try to stimulate
borrowing in the regions. At the second stage we will pay enhanced
attention to this problem. The German Government even demands more
active crediting in the region. This demand will be fixed in the credit
agreement and we will develop mechanisms to encourage local banks
to credit more actively outside Yerevan. Besides, we are considering
ways to help relatively poor people to buy houses.

Do you mean social housing program?

A newly married couples need to buy new houses or to exchange their
one-room flats for two- or three-room apartments. Not all of them
can borrow money on current terms. So, they need support. In some
countries the government covers the prepayment for certain social
groups (poor families or newly married couples), funds the interest,
prolongs the deadlines or provides guarantees of repayment. An employer
may also act as a guarantor. There are lots of different ways of how to
support such people and many of them are being considered in Armenia.

Mr.Gevorgyan, the problems in the field of crediting and the lack of
new products, particularly, in mortgage lending, are making heavier
the impacts of the crisis? What can our economy and financial-banking
sector expect in the second half of 2009 and 2010?

I think that 2009 will be the hardest for Armenia. I have
all grounds for making such a forecast. 2010 will be a year of
stabilization. Armenia will try to stabilize the situation in its
economic and financial sectors. This will be followed by slow growth
in lending activity. For example, by the end of 2010 half of the
20mln EUR to be lent under the KfW mortgage crediting program will
have already been spent. I am optimistic – at least, as far as our
projects are concerned – especially as today we are observing quite
positive dynamics.

What do you think about the general investment situation in our
country? Is it consonant with the global tendencies?

Relations between private and state investors in Armenia are at a
low level yet. Investors regard Armenia as a quite risky region. As
a result, we are forced to borrow money at high interest unless
it is granted by donors. So, even if the international rates drop,
in Armenia the rates will remain the same and may even grow due to
shortages of resources. Ideally, the changes on the global market
should have influenced our market but the real situation is different.

Chessbase News, Germany
Aug 8 2009

Bilbao Masters: Topalov out, Aronian in

08.08.2009 ` Originally it was bigger, with the winners of six major
tournaments invited to participate in the Basque town of Bilbao. A
major financial crisis led to the down paring of the event to a
four-player double round robin (six rounds) and the prize fund
considerably reduced from last year’s total of ?¬400,000. Now
one of the participants, Veselin Topalov, has opted out, and is
replaced by Levon Aronian. Press release.

Grand Slam Chess Association

The Masters Final 2009 will be held in Bilbao from September 6th to
12th
The II Grand Slam Final Chess Masters 2009 will be held in Bilbao from
September 6th to September 12th on the same stage that hosted the 2008
Bilbao Masters Final. Therefore, the Bilbao Plaza Nueva (central
square), in the heart of the city, will again host the great glass
cube that made it possible last year for a tournament of such prestige
to be played outdoors for the first time in the public domain.

The Masters Final 2009 is played exclusively by the four winning
players of the tournaments that, along with Bilbao, make up the Grand
Slam Chess Association and are among the best tournaments in the
world: Corus Wijk aan Zee, Holland; Ciudad de Linares, Spain; Mtel
Masters, Sofia, Bulgaria; and the Pearl Spring Tournament of Nanjing,
China, this year incorporated into the Grand Slam.

The four chess players who will compete in the Bilbao Final are Sergey
Karjakin, the winner of Wijk ann Zee, Alexander Grischuk, winner of
Ciudad de Linares, Alexei Shirov, winner in Sofia, and Levon Aronian,
second-place winner of Nanking ` since as Veselin Topalov, winner of
Nanking, has refused the invitation to play the Final.

For the Organizing Committee, along with institutions, sponsors and
partners, the international economic situation has been a determining
factor to decide that, in this Final, the budget and prizes must be
tightened up in order to be sensitive to the social effects derived
from the crisis. This approach doesn’t meet the expectations of
Veselin Topalov, who also has valued the hardness of the Final
Masters. The World Championship that he will play is just around the
corner, and these factors have led him to refuse the invitation of the
Grand Slam.

The organisers have confirmed that all those aspects which contributed
to the excellent results achieved in 2008 are all to be expected again
this year as well as the great turn-out that was witnessed both
locally and internationally. A varied programme of extra events, the
`expert’s spot’ commentary and analysis area for all audiences to
follow, big screens, live internet transmission, the great glass cube
and media representatives from every continent are all also to be
expected at the event. And, most importantly, the hosting of an elite
chess event outside, amongst the greater public.

The Masters Final supports interesting and novel rules in order to
guarantee a battle and spectacle in each game. The so called named
`Sofia’s Rule’ which states that draw-offers will only be allowed by
the Arbiter, will be applied in this double round-robin
tournament. The scoring system will be once again similar to football
scoring system: Players will get three points for winning a game, one
point for drawing and zero points for losing. This scoring system was
first applied in an elite chess tournament during the last Bilbao
Final Masters 2008, and is known as `Bilbao’s Rule’.

Alexei Shirov ` Spanish nationality and born in Riga, Letonia, in
1972. He is noted for his attacking style and he has pointed out that
aggressiveness is an essential feature of his playing mode. He has
been called `the last Romantic chess player’, or the `Leonardo da
Vinci’ of chess, thanks to his creative approach along with the risks
he takes while playing. In 2000, Teheran, he reached the final of the
FIDE World Chess Championship, losing to Viswanathan Anand. In 2007 he
played in the Chess World Cup 2007, but he lost the final to Gata
Kamsky.

International Chess Grandmaster Alexander Grischuk was born in 1983 in
Russia. Along with being a very talented young player, Grischuk is
also known as one of the best blitz chess players, having won the 2006
World Blitz Championship in Israel.

Sergey Karjakin, born in Ukraine, January 12, 1990, holds the record
for the youngest grandmaster in history, achieving the title at the
age of twelve years and seven months. In 2004, at 14, he played in
Bilbao in the Man vs Machine World Team Championship. Karjakin was the
only human to win against a computer. In 2007 he played the Blindfold
World Chess Cup again in Bilbao. He is a very talented player who
guarantees a splendorous future for himself, not only for his great
command of tactics but also for his gift for strategy since the
beginning of his career, a rare quality among children. It is for this
reason that the pools for future World Champion always include
Karjakin.

Levon Aronian, born in Yerevan, Armenia, 1982. He is the only player
of this Final who took part last year in the first edition of the
Final Masters. He is a great chess luminary: at 26 he has already won
the World Cup and the Linares and Wijk aan Zee (twice)
tournaments. That naturalness, his universal style and belonging to a
country where chess is the national passion, as well as a balanced
nervous system configure the 26 year-old Armenian Levon Aronian as a
very solid value. Prone to the high risk in his games, both organisers
and followers are fond of Aronian.

Bilbao, August 7th, 2009

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