Author: Kharatian Ani

WB TO EXTEND $50MLN WORTH LOAN FOR DEVELOPMENT OF SMALL AND MEDIUM BUSINESS

ARKA
Feb 27, 2009

YEREVAN, February 27. /ARKA/. The Central Bank of Armenia and the
World Bank signed a loan agreement on provision of $50mln to the
country for development of small and medium business, the CBA Press
Service reported.

The document is signed by CBA Chairman Artur Javadyan and Director
of WB Yerevan Office Aristomene Varoudakis.

The aim of the program is to promote development of small and
medium entrepreneurship in Armenia through better access to mid-tern
loans. Under the program, favorable conditions will be created for
private small and medium enterprises and for the banks involved in
the program, says the report.

Loan funds are provided under terms of International Bank for
Reconstruction and Development to be repaid within 26.5 years and with
a 5-year grace period against security of Armenian Ministry of Finance.

The loan funds will be distributed through partner financial
organizations with who the Central Bank is to sign loan
agreements. Selection of these organizations will be competitive as
per the criteria set by the World Bank.

Taking into account that incomes and expenditures of the majority of
private small and medium enterprises operating in the territory of
Armenia are in Armenian Drams, most part of the loan is expected to
be provided in the national currency.

Yet, the program also gives an opportunity for credits in dollars,
if borrowers make an appropriate request and prove their foreign
currency income source, the press service said.

Private enterprises registered in Armenia and with their turnover not
exceeding 500mln Drams can apply for credits under the program. The
program will be implemented thorough the program management office
of German-Armenian Fund established in 2001.

TURKEY’S INVOLVEMENT IN CONSTRUCTION OF NEW POWER UNIT OF ARMENIAN NPP WILL MAKE ARMENIA DEPENDENT ON TURKEY: LOCAL ECONOMIST

ArmInfo
2009-02-26 16:52:00

ArmInfo. Turkey’s involvement in the construction of the new power
unit of the Armenian nuclear power plant (NPP) will make Armenia
dependent on Turkey, Tatul Manaseryan, a well- known local economist,
Doctor of Science, Economics, told media Thursday when asked about
idea of involving Turkey in the project. To recall, on February 21
Prime Minister of Armenia Tigran Sargsyan said at the 6th International
Economic Forum ‘Bridge-2009 in Tsakhkadzor that Turkey and Russia take
interest in the project. ‘We are open for dialogue’, the premier said.

T. Manaseryan is sure that it is inexpedient for Armenia to think of
economic relations with a country it has no diplomatic relations with,
especially thinking of Turkish presence in Armenia in such scales. The
project of the 1000-megawatt new power unit construction in the area
of the NPP estimated to cost 5-7 billion euro. Turkey has repeatedly
displayed concern about the state of the operating power unit and
insisted on its sooner closing down.

TURKEY TO KEEP MILITARY TIES WITH ISRAEL

GaziAntep Haber 27
Feb 24 2009
Turkey

A senior Turkish official says a recent rift between Tel Aviv and
Ankara will not affect the two sides’ joint military projects.

Turkey’s Undersecretary for the Defense Industry Murad Bayar denied
media reports that Tel Aviv has rejected arms orders from Ankara after
relations between the two sides stained over the Israeli invasion of
the Gaza Strip, the Turkish daily Hurriyet reported.

"Turkey and Israel have mutual benefits in these projects. The
projects are carried out within such framework," the daily quoted
Bayar as saying at the International Defense Exhibition and Conference
(IDEX-2009) in Abu Dhabi, the United Arab Emirates.

The remarks were made after media reports citing Israeli officials said
that Tel Aviv was mulling over rejecting an arms request by Ankara.

Relations between the two sides began to strain after Turkish Prime
Minister Recep Tayyip Erdogan publicly slammed Israel over its
offensive against the Gaza Strip.

The tension escalated after Israeli Ground Forces Commander Avi Mizrahi
said Erdogan, who criticized Israel’s military campaign on Gaza,
"should first look in the mirror".

He accused Ankara of "committing a massacre of Armenians, as well
as suppression of the Kurds". The remarks drew harsh reactions from
Turkish officials and forced the Israeli side to express regret
and apologize

ARMENIA READY TO ASSIST WITH SOLUTION OF MECHITARIST CONGREGATION’S PROBLEMS

Noyan Tapan

F eb 23, 2009

YEREVAN, FEBRUARY 23, NOYAN TAPAN. The Armenian president Serzh
Sargsyan on February 23 received the Supreme Archimandrite
of Mechitarist Congregation, Father Yeghia Kilaghpian and the
director of the Mechitarist Educational Complex of Armenia, Father
Serob Chamurlian. He spoke highly about Mechitarist Congregation’s
historical role, noting that Armenia as a state must show interest
in the affairs of Mechitarist Congregation and provide all possible
assitance for solution of its problems.

The interlocutorts discussed the problems and future plans of the
Cogregation. The activities of the Murad Rafaelian College and the
Mechitarist Educational Complex of Armenia, some joint educational
and cultural undertakings were also addressed.

According to the RA presidetial press service, S. Sargsyan said
that the state is ready to assist with the solution of Mechitarist
Congregation’s problems.

RA PRIME MINISTER TIGRAN SARGSYAN ATTENDED A BOOK SHOW AT CHILDREN’S NATIONAL LIBRARY AFTER KHENKO APER IN YEREVAN

20.02.2009

RA Prime Minister Tigran Sargsyan attended a book show at Children’s
National Library after Khenko Aper in Yerevan.

The Prime Minister went round the pavilions, familiarized himself
with the exhibits and talked to the hosts about importance of this
nice initiative.

PanARMENIAN.Net

Georgian Foreign Minister laid wreath to Armenian Genocide Memorial
21.02.2009 12:21 GMT+04:00

/PanARMENIAN.Net/ Currently in Yerevan, Georgian Minister of Foreign
Affairs Grigol Vashadze laid a wreath the Armenian Genocide Memorial.

Grigol Vashadze also attended the Armenian Genocide Museum and left a
note in the Memory Book, saying, `I regret that people
haven’t learned to draw lessons from history.’

ARMENIAN GOVERNMENT REFUTES PRESS REPORTS ON CHANGES IN AMD EXCHANGE RATE

ARKA
Feb 19, 2009

YEREVAN, February 19. /ARKA/. The RA Government has refuted the
information on changes in the AMD exchange rate reported by the
opposition press.

The RA Government has not issued any warning concerning a rise in the
AMD exchange rate to the banks operating in Armenia, reported the RA
Government’s press service.

The opposition press reported that the RA Government and the Central
Bank of Armenia (CBA) allegedly warned the commercial banks operating
in Armenia of a rise in the AMD exchange rate in the coming two months.

In her earlier interview to ARKA, Head of the CBA Public Relations
Service Zaruhi Barseghyan refuted the reports as well.

CBA Chairman Artur Javadyan had reported that the CBA remained
committed to its policy of floating exchange rate, and its priority
task is to ensure financial stability in the country.

He also pointed out that all the only purpose of the current
interventions by the CBA is to ensure financial stability.

The floating exchange rate policy was launched in Armenia in 1993
and has been welcomed by international institutions.

>From 2003 to 2008, 47.3% USD depreciation against the AMD was
registered in Armenia. January 8 through 29, the USD showed 0.7%
depreciation against the AMD. Since the beginning of 2008, the US
dollar has shown some revaluation – 305.94 AMD/$1 late in 20 07
against 305.22 AMD/$1 on February 18, 2009.

PURCHASER OF "BJNI" PLANT PAYS FULL VALUE OF LOT

Noyan Tapan
Feb 19, 2009

YEREVAN, FEBRUARY 19, NOYAN TAPAN. On February 19 – the third
day after the end of the complulsory electronic re-auction of the
property and property rights of "Bjni" Mineral Water Plant compamy,
the purchaser paid the full value of the lot, NT was informed by the
National Service for Compulsory Enforcement of Court Acts (NSCECA). The
name of the purchaser was not given.

In addition to 222 million 68 thousand drams paid as a prepayment
on February 16, 4 billion 219 million 432 thousand drams was paid
to NSCECA.

To recap, one bid was filed during the auction held on February
5-16. The sale price of the lot made 4 billion 441.5 million
drams. Under Article 35.2 Point 6 of the RA Law on Public Bargaining,
the participant who won at the auction was obliged to transfer the
purchase price of the lot to NSCECA’s deposit account or cashbox or
to pay the purchase price of the lot minus the prepayment within 3
bank days.

$4 MLN WORTH LOAN AGREEMENT SIGNED BETWEEN INECOBANK OF ARMENIA AND DWM ASSET MANAGEMENT

ARKA
Feb 19, 2009

YEREVAN, February 19. /ARKA/. Armenian Inecobank and DWM Asset
Management (member of "Developing World Markets") signed a loan
agreement for a total of $4mln. The new loan funds will be used to
develop microfinancing in Armenia, the bank reported.

Under the loan agreement, maximal amount of loans to be provided by
the bank is $10,000 and the repayment period is 24months.

Businessmen with their production, trade and service businesses
operated not less than three months can get credits under the program.

The press release reports that it is the first loan agreement of
Inecobank with DWM group and it is a start of a mutually advantageous
cooperation. New programs are being considered.

These are also the first investments made by the group in Armenia.

Inecobank closed joint stock company was registered on February 7
1996. In December 1997 the bank became the first bank in Armenia
extending credits for consumer goods.

Among the stockholders of Inecobank are member of KfW group DEG
company (Deutsche Investititions-und Entwicklunsgesellschaft mbH)
with 13.5% and the International Financial Corporation with 10%. The
bank is cooperating with the EBRD, USAID, KfW, the Black Sea Trade
and Development Bank and other international organizations.

The bank’s assets had totaled 44.3bln Drams as of the end of December
=0 A2008 with total capital being 8.4bln Drams. The authorized
stock of the bank was 1.4bln Drams, the credit investments –
15.2bln Drams and the net profit 1.6bln Drams in January-December
2008. ($1=305.26Drams).

GERMAN MFA HAILS EFFORTS FOR TURKISH-ARMENIAN RECONCILIATION

PanARMENIAN.Net
17.02.2009 17:48 GMT+04:00

/PanARMENIAN.Net/ Germany’s Foreign Minister Frank-Walter Steinmeier
said Turkey’s importance in energy transportation would be better
acknowledged in the years to come.

Steinmeier, who delivered a speech at the lunch hosted in Berlin by
Turkish Community in Germany (TGD), said he always supported Turkey’s
accession to the EU, adding however that there were certain countries,
which were rather hesitant about it.

Steinmeier said he appreciates Turkey’s efforts to enhance both
its own relations with Armenia and the relations between Azerbaijan
and Armenia.

He also emphasized that if his Social Democratic Party (SPD) wins
the elections on September 27, Germany’s attitude towards Turkey’s
bid will change.

"Our party supports Turkey’s full membership in the EU," he said,
World Bulletin reports.