SIX ARMENIANS ELECTED TO CITY PARLIAMENT OF KISLOVODSK

Noyan Tapan
Armenians Today
Mar 27 2006

KISLOVODSK, MARCH 27, NOYAN TAPAN – ARMENIANS TODAY. At the invitation
of the new administration of the city of Kislovodsk, of the Stavropol
region, Ararat Gomtsian, the Consul General of the Republic of Armenia
to the Southern Federal Region of the Russian Federation participated
on March 24 in the solemn ceremony of Kislovodsk Mayor Biryukov’s
undertaking the post, elections of who took place on March 12,
2006. According to the “Yerkramas” (country) newspaper of Armenians
of Russia, congratulating the new city head in the solemn situation,
Ararat Gomtsian wished prosperity to the world-known city-health resort
as well as development of friendly relations between Kislovodsk and
Armenia, particularly, with the city sworn brother of Kislovodsk –
Vanadzor. The Consul General of Armenia also congratulated the newly
elected deputies of the city parliament, among who there are six
citizens of Kislovodsk of the Armenian origin. He wished for the
people’s elects devotes their experience and knowledge to prosperity
of the health resort and improving citizens’ well-being.

INTERNATIONAL BANKING CONFERENCE ON TRADE FINANCING TO START ON MARCH 28 IN YEREVAN

Noyan Tapan
Mar 27 2006

YEREVAN, MARCH 27, NOYAN TAPAN. Representatives of about 80 Armenian
and foreign organizations will participate in the 3-day international
banking conference on trade financing to open in Yerevan on March
28. The European Bank for Reconstruction and Development (EBRD) and
Armeconombank are the event’s organizers. NT correspondent was informed
at Armeconombank that the following reports will be made during the
conference: “The Role and Problems of the Armenian Banks in Connection
with Trade Promotion”, “The Peculiarities of Trade Financing in Armenia
(Currency Regulation and Control, Customs and Tax Legislation)”, “The
RA Payment Balance, the Structure and Problems of Import and Export”,
“The Exporters and Cooperation of Banks with Respect to Import and
Export Activities”, “The Financial Audit as An Instrument to Strengthen
the Confidence of the Banking System”. A seminar on issues of trade
promotion and financing will be held for bank representatives and
businessmen within the framework of the conference.

REGULAR MEETING OF USATF TO TAKE PLACE IN YEREVAN IN MAY

Noyan Tapan
Mar 27 2006

YEREVAN, MARCH 27, NOYAN TAPAN. A regular meeting of the US-Armenia
Task Force (USATF) will take place in Yerevan in May. NT correspondent
was informed at the RA Ministry of Finance and Economy that the
programs envisaged within the framework of cooperation will discussed
at the meeting. Particularly, the programs to be implemented in the
trade and energy sectors, as well as issues related to the improvement
of investment and business climate will be addressed at the meeting.

SITTING OF ARMENIAN-GREEK INTERGOVERNMENTAL COMMISSION ON ECONOMIC COOPERATION TO BE HELD IN YEREVAN IN APRIL

Noyan Tapan
Mar 27 2006

YEREVAN, MARCH 27, NOYAN TAPAN. Issues related to the trade and
economic cooperation between Armenia and Greece in agriculture,
agricultural processing and other spheres will be discussed at a
sitting of the Armenian-Greek intergovernmental commission on economic
cooperation to be held in April. Mushegh Sargsian, Deputy Director
of Export and Enterprise Development at the Armenian Development
Agency (ADA), told NT correspondent about it. According to him,
the Greek government pledged to provide some assisitance for the
development of Armenia’s agricultural complex. He noted that the
agency has established contacts with a number of Greek distributor
companies which take interest in exporting a number of Armenian
goods to Greece. In the words of M. Sargsian, ecologically clean
products are in great demand on the Greek market, while Armenia is
considered in Greece as a possible supplier of ecologically clean
foodstuffs. He said that in order to use this opportunity, a fbody
to certify the ecological purity of foodstuffs need to be set up in
Armenia. M. Sargsian underlined that Armenia will continue to implement
Armenian businessmen’s training programs jointly with Greece. He noted
that some Armenian wine makers have already undergone training in
Greece last year. It is envisaged that under a program prepared by the
ADA, the managers and marketing experts of 18-20 Armenian enterprises
in leather, footwear, leather clothing and article production will
undergo training in Greece this year.

GRAPES, FRIUT AND VEGETABLE PROCESSING CAPACITIES INCREASE IN ARMAVIR MARZ

Noyan Tapan
Mar 27 2006

YEREVAN, MARCH 27, NOYAN TAPAN. The area covered by grapevines and
fruit gardens has increased by about 2,000 ha in Armavir marz in the
last three years.

Parandzem Karapetian, Head of the Armavir regional government stuff,
told NT correspondent about it. In her words, the capacities of
processing grapes, fruit and vegetables have grown in the marz,
mainly thanks to the establishment of small and medium enterprises by
businessmen of Echmiadzin and Armavir, whereas three-four years ago the
Sardarapat company (former Octemberian canning factory) was the only
fruit and vegetable processing enterprise in the marz. Representatives
of the private sector are also taking steps aimed at creation of
fruit and vegetable processing capacities in Baghramian region. P.
Karapetian said that some enterprises engaged in wine and
cognac production in Armavir marz have started planting their own
vineyards. It was noted that the process of setting up the refrigerator
facilities by businessmen is gathering full speed in the marz. A big
regrigerating faciity is operating in the city of Armavir, their
number is large in the Arevik region famous for its production of
grapes. P.Karapetian underlined that all the 94 village communities
of the marz are involved in the Armenia’s Millennium Challenges
Program. It is envisaged that within the framework of this program,
large land plots in Armavir marz will be irrigated by the dripping
way instead of the pumping one.

Besides, the irrigation network of the marz will be reconstructed:
concrete channels will be build instead of the current channels with
a soil course.

Reclamation of swampy lands, construction of artesian wells and land
imrovement will also be done under the Millennium Challenges Program.

NATIONAL UNITY PARTY TO CONTINUE PUBLISHING FACTS OF LARGE-SCALE CORRUPTION

Noyan Tapan
Mar 27 2006

YEREVAN, MARCH 27, NOYAN TAPAN. The National Unity Party will soon
publish many facts of large-scale corruption and bribery. Alexan
Karapetian, Vice Chairman of the National Unity (NU) Party, Secretary
of the NA NU faction, stated this during a meeting held at the Pakagits
Club. According to A. Karapetian, he already mentioned three such
cases in the parliament. As a result of one – nonfulfilment by the
Mika Limited company of its obligations stipulated in the contract on
supply of aviation fuel to Zvartniots Airport, the state suffered a
loss of 2.9 mln USD. The vice chairman of NU referred to the act of
a check-up of financial liabilities, which was conducted in February
2002 at Zvartnots Airport by the Main Financial Department of the
RA Ministry of Finance and Economy. According to the document, the
airport signed a contract on aviation fuel supply with Mika Limited in
September 1999. Mika Limited was obliged to supply 10 thousand tons of
aviation fuel at the price of 208 USD for a ton until December of the
same year. The transportation to the Ayrum railway station was to be
done by the supplier. However, Mika Limited broke this agreement. In
order to avoid the fines envisaged by a contract signed with Armenian
Airways, the airport imported the fuel itself, as a result of which
a ton of fuel cost Zvartnots Airport 320 USD. Mika Limited did not
pay the fine for breaking the contract. The fine made 2.9 mln USD as
of January 1, 2002, and by the current exchange rate of the Armeian
dram against the US dollar – 3.8 mln USD. However, in the words
of A. Karapetian, after compiling the above mentioned act, in 2002
Zvartnot’s director informed the ministry in writing that two years
before – in 2000, the 1999 contract was cancelled by mutual consent
by Zvartnots Airport and Mika Limited. The document confirming this
consent, which at the time was at Aviation Fuel Filling CJSC, was
not presented during the check-up. Thus, according to A. Karapetian,
the management of the state enterprise and M. Baghdasarov came to an
agreement on the sum to be paid to the state. The vice chairman of the
National Unity Party noted that in recent years the authorities have
spoken a great deal about the necessity to fight against corruption,
whereas some persons close to the authorities are themselves engaged
in corruption and bribery.

SME STATE ASSISTANCE PRODUCES RESULTS

Noyan Tapan
Mar 27 2006

YEREVAN, MARCH 27, NOYAN TAPAN. Under the 2005 state program
on assistance to small and medium enterprises (SME) of Armenia,
about 4.5 thousand small and medium enterprises received state
assistance. Ishkhan Karapetian, Director of the SME National
Decelopment Center (NDC) of Armenia, stated this on March 24. In his
words, assistance was provided for credit guarantees and introduction
of quality management systems, support for businessmen who have just
started running a business, market promotion of goods, as well as for
business information, advice and training. The SME NDC director said
that the implementation of the credit quarantees program started in
2005. Within the program’s framework, 54 guarantees of a total of 195.4
mln drams were given in all the Armenian marzes, which allowed SME to
get loans of the total amount of 370 mln drams (about 822 thousand USD)
at lower interest rates than the market ones.

The credit guarantees program was implemented by 100% in the Armenian
marzes, by 80% – in remote and border areas, where there are still
credit security-related problems. The amount of 7 credit guarantees
has already been repaid, while the credit repayment index makes up
100%. According to I. Karapetian, turnover volumes grew by 30-40%,
jobs – by 24% and tax payment – by 19-20% at the enterprises that
received credit guarantees. It is envisaged to extend the program
in 2006. Besides, within the framework of the SME state assistance
program, a program on assistance of beginner-businessmen was
implemented in three Armenian marzes with the participation of
67 beginner-businessmen, 13 of which were registered as economic
entities. I. Karapetian noted that with the creation of the 4 regional
branches of the SME NDC in 2005, the process of forming a network
of branches was completed, and branches are now functioning in all
Armenian marzes. According to him, the state budget resources for
the implementation of the SME assistance program will increase by
50 mln drams in 2006 compared with 2005 and make 350 mln drams, and
this sum will be allocated for the development of new programs and
mechanisms of SME assistance.

Provision of assistance to the SME of Armenian marzes, especially
to those in border areas, will remain the main direction of the
program. This year it is envisaged to extent the program on assistance
to beginner-businessmen to all the Armenian marzes. In response to a
question of NT correspondent, the SME NDC director said that since
2002 the center has assisted 15-20 companies with introducing the
quality management systems, as a result of which their turnover and
exports significantly increased. According to him, the businessmen
attach now much more importance to the necessity to introduce new
methods of business running than they did in 2002.

SHARE OF SME REGISTERED IN ARMENIAN MARZES ON INCREASE

Noyan Tapan
Mar 27 2006

YEREVAN, MARCH 27, NOYAN TAPAN. In 2005, the production of Armenian
small and medium enterprises (SME) accounted for 40% of Armenia’s
gross domestic product (GDP), which is a 1.4% increase compared with
the previous year, and a 20.3% increase on 2000. Ishkhan Karapetian,
Director of the Armenian SME National Development Center (NDC), stated
this on March 24. According to him, in 2005, the SME development index
grew by 55 points to 172 points, whereas in 2003 this index made 58
points (the SME development index is an aggregated index, which is
calculated based on the share of the private sector’s production in
GDP, the percentage of those employed at SME in the total number,
and GDP per capita). In addition, the share of SME production in
the volume of exports increased as well: in 2005, it made up 16.4%
against 15.3% in 2004 and 14.3% in 2002. According to I. Karapetian,
the share of small and medium enterprises in the total number of
enterprises registered in late 2005 constituted 97.8%. The pecentage of
SME registered in the Armenian marzes in the total number of SME grew
and made 52% in 2005, which is indicative of the fact that the economic
activity gap between Yerevan and the marzes is decreasing. According
to I. Karapetian, in 2005, about 9 thousand SME were registered in
Armenia, thanks to which 22-23 thousand jobs were created.

ADB TO ALLOCATE FUNDS FOR DEVELOPMENT OF MORTGAGE MARKET IN ARMENIA

Noyan Tapan
Mar 27 2006

YEREVAN, MARCH 27, NOYAN TAPAN. The Asian Development Bank (ADB)
envisages to allocate funds for the development of the Armenian
mortgage market. NT correspondent was informed at the RA Ministry
of Finance and Economy that the ADB provides credits and grants to
its member states for the purpose of implementing the development
programs which have been given a prioirity. Armenia joined the ADB
in September 2005. The Asian Development Bank’s membership currently
numbers 64 member sttaes, with Japan and the US having the largest
shares in the ADB’s capital.

WB PLANS TO IMPLEMENT PROGRAM OF REEQUIPMENT OF HYDROMETEOROLOGICAL SERVICE IN ARMENIA

Noyan Tapan
Mar 27 2006

YEREVAN, MARCH 27, NOYAN TAPAN. Armenia is among 6 countries where
it’s planned to implement a program aimed at estimation of efficiency
of perfection of forecasting and warning systems for the purpose of
reequipment of hudrometeorological services by the World Bank (WB). As
Noyan Tapan correspondent was informed by Levon Vardanian, Director
of the Armenian State Service of Hydrometeorology and Monitoring
(Armstatehydromet), the program’s preliminary cost is about 5 mln
300 thousand USD. It was also mentioned that the current isufficient
level of technical equipment of Armstatehydromet has a negative impact
on the country’s hydrometeorological service quality. According to
L.Vardanian, the direct losses the Armenian economy suffered as a
result of dangerous hydrometeorological fenomena are estimated in
the amount of 35 bln drams (about 77 mln USD) a year. He mentioned
that according to experts, usage of hydrometeorological information
enables to prevent 30% of these losses.