Armenia's Economic Pulse

[KarotheGreat]

Re: Armenia's Economic Pulse

Foreign investors filling Armenian capital market

/PanARMENIAN.Net/ Armenia has the potential to develop the capital market, RA Minister of Economy said.

“Major enterprises can cast a glance at developing countries’ market which doesn’t suffer much from the global financial crisis,” Nerses Yeritsyan said during “Capital Market in Armenia” conference.

“Capital Market is a mechanism of redistribution of income absence of which can be equaled to absence of tax legislation,” he said.

The Minister also informed that the Armenian government has initiated introduction of corporate management rules in the Armenian public sector.

“Science-intensive economy is also a basis for development of capital market. If a potential market participant doesn’t know where and how to sell goods, the market will never develop,” Minister Yeritsyan said.

http://www.panarmenian.net/news/eng/?nid=28982

[KarotheGreat]

Re: Armenia's Economic Pulse

WB will help Armenia and Kongo overcome financial crisis consequences

/PanARMENIAN.Net/ Armenia and Kongo will become the first countries to receive prompt assistance from the World Bank. A special program aims to alleviate the impact of the global economic crisis in developing countries.

Armenia will be granted $35 million and Kongo - $100 million. According to WB statement, the grant, aimed at the initiation of road construction and small business investments, will secure 280 000 new job positions, Radio Liberty reports.

Earlier the WB Executive Directors Board has approved a $85 million loan to Armenia to alleviate impact of the global economic crisis.

The loan maturity is 20 years with 10 years of grace period.

The loan targets implementation of 4 projects: social investments fund ($8 million), small agricultural and rural business ($2 million), rural roads repair ($25 million) and Access to Finance for Small and Medium Enterprises Project ($50 million).

http://www.panarmenian.net/news/eng/?nid=28987

[Federate]

Re: Armenia's Economic Pulse

Ugh these incompetent and corrupt fools. Good job ARF.
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ARF Opposes Turkish Assistance Re: Atomic Plant, Finds Nothing New in Ter-Petrosyan Speech
[ 2009/03/03 | 14:08 ] economy politics
Shushan Stepanyan

ARF member and National Assembly Deputy, Ara Nranyan, today stated his amazement regarding Prime Minister Tigran Sargsyan’s invitation to Turkey to assist in the construction of a new atomic power plant in Armenia.

Mr. Nranyan stated that the ARF neither understood the technological nor economic rationale for such a proposal. “Because we operate a atomic plant, because we are a respected nation, because we have erected an energy block, which is unprecedented, something that Turkey doesn’t possess but wishes to have but is experiencing problems with, it is senseless to invite it to assist us in a technological sense,” he stated and added that we have other powerful economic partners that will participate in the construction efforts.

“From a political point of view as well this announcement can possibly cause us harm. We must find a resolution to the economic crisis via our own internal political means and not through such statements,” Mr. Nranyan commented.

He noted that the ARF was awaiting clarification on the issue and couldn’t understand what motivated the parliamentary opposition to welcome such a move. “If such injurious statements didn’t emanate from Armenia the problems would be resolved in our favor,” Deputy Nranyan added.

Turning his attention to current political affairs and the recent speech given by Levon Ter-Petrosyan on March 1st which mostly touched on economic issues, Mr, Nranyan noted that, “It is hard to find anything new in his speech. There are themes in it that the ARF raised 4-5 years ago; there are themes in it that are factual. The problems he pointed to have been raised by us long ago both in the parliament and in the executive branch,” he claimed.

http://hetq.am/en/politics/anranyan-2

[Federate]

Re: Armenia's Economic Pulse

Armenian Power Supplies To Turkey ‘Done Deal’

By Ruben Meloyan

Energy Minister Armen Movsisian insisted on Friday that Armenia will start exporting electricity to Turkey this spring in line with an agreement which he said was reached by the two governments last year.

The Armenian government announced such an agreement between an Armenian state-run power transmission company and a Turkish utility following Turkish President Abdullah Gul’s September 2008 visit to Yerevan. Movsisian and other energy officials said that Armenia will start delivering 1.5 billion kilowatt/hours of electricity in March if technical preparations at power grids in eastern Turkey are completed by that time.

The Turkish side has still not officially confirmed the information. Some officials in Ankara have actually denied that Turkey is set to buy electricity from a country with which it has no open border and diplomatic relations.

“The agreement [on electricity exports] was signed,” Movsisian insisted on Friday. “In accordance with that agreement, preparatory work is underway [in Turkey] to start electricity deliveries as soon as possible.”

“It was envisaged that that work will be complete in April,” he told RFE/RL. “It is still possible that we will finish that and start [supplies] in April. The latest snowfalls and weather conditions will create technical problems. But in any case, the agreement will begin to work after the technical issues are solved.”

Armenia produced approximately 6 billion kilowatt/hours of electricity last year and has the capacity to significantly boost that output. Two major Armenian thermal-power plants are currently undergoing multimillion-dollar reconstruction. They are due to be the main recipients of natural gas that will start flowing to Armenia from neighboring Iran through a recently built pipeline. It is expected that the bulk of electricity to be generated with Iranian gas will be sold to the Islamic Republic.

The small landlocked country will enhance its energy export potential further if the Armenian government succeeds in replacing the Soviet-built nuclear power station at Metsamor by a new and modern facility by 2016. The government is looking for an estimated $5 billion in foreign investments need for the implementation of the ambitious project.

Prime Minister Tigran Sarkisian caused a stir recently when he declared that Yerevan would not object to Turkish investments in the project. “Anyone can participate in the construction of our nuclear plant,” confirmed Movsisian. “By that I mean that they can own a stake in the future plant.”

“Nobody has officially applied to us to discuss Turkish involvement,” he said.

http://www.armenialiberty.org/armeniareport/report/en/2009/03/A35FD37F-CECD-410C-9BDB-D3798C739F97.ASP

[Federate]

Re: Armenia's Economic Pulse

Business Culture: К-Telecom continues Corporate Social Responsibility in Karabakh


Karabakh Telecom Company has signed an agreement with the government of Karabakh to allocate 600 million drams (about $1.3million) for health care, as part of the communication company’s Corporate Social Responsibility.

K-Telecom, which established in Karabakh in 2002 has – like its sister VivaCell in Armenia – introduced CSR there. The communications giant has built playgrounds, sponsored numerous cultural events and has championed the cause of hiring the disabled.

The executive manager of “Karabakh Telecom” Ralph Yerikyan says it is not charity at all, “the company just returns part of the profit to the population.”

In 2008 the company allocated (1.2 million), which was used to buy equipment for Stepanakert maternity hospital. This year the money donated will be used to build a new wing of the hospital in Kashatag (former Lachin) and to continue the construction of a hospital in Martakert.

In February the Public Committee on Economic Competition Regulation in Karabakh made a number of decisions, according to which rates were decreased for a SIM-card: from March 1, instead of 8 thousand drams (about $22), the citizens of Nagorno Karabakh pay 2,000 (about $5.40) to have the card connected. From March 1, the rate per minute is 40 dram – instead of the previous 44. And since March 1 the cards of K-Telecom work on the territory of Armenia as well.

The prices for mobile services in Karabakh are relatively expensive, but the charity activity of the company compensates in the eyes of the citizens.

“The connection here is very expensive. We are only consoled by the fact that Karabakh Telecom implements immense charity projects. The results are evident – playgrounds for children, expensive medical equipment, water pipes, schools. I am ready to pay more for the phone service, as long as the money is used for public benefit,” says 52-year old Sergey Sargsyan.

Karabakh telecom finances were used to build 12 children’s playgrounds in 5 towns of Karabakh – Stepanakert, Shushi, Martuni, Martakert and Hadrut. Hadrut region was also given an ambulance, a water carrier and a garbage collecting truck. Garbage collecting trucks were given to Martuni region, ambulances – to Askeran and Kashatag regions, 2 buses – to Karvachar region, financial aid was given to Shushi region, and the Rescue Service of Nagorno Karabakh was given an ambulance.

Motivated by this very principle of charity, the wealthy who once lived in Shushi used to build thetares, hospitals, and water mains – including a merchant’s donation that equipped Shushi with drinking water in 1896. Likewise, a hospital was also built in 1891 and is today still called “Zhamgaryan”, in honor of the donors.

During Soviet years citizens lost the habit of public charity, as everything was provided – and expected to be – by the State. K-Telecom is actively trying to restore the tradition, and it is the only company in Karabakh which implements programs within the framework of “Corporative Social Responsibility”

In 2008, 64 charity projects were implemented in Karabakh, totaling 4 billion dram. ($10 million) The money is mainly provided by foreign philanthropists, and only a tiny amount – by locals. It is notable that in 2009 Karabakh Telecom may become the first on the list of tax-payers in Karabakh (for several years Drmbon copper-mining complex was number one, but it has dramatically decreased mining due to the economic crisis). Last year K-Telecom paid about $2 million in taxes, behind Drmbon’s $7.2 million.

As a whole, the state budget of Karabakh is clearly aimed at the public needs. According to Welfare Minister Narine Azatyan, expenses aimed at the social sphere prevail in the spending of the state budget: 51.9 percent (in 2008 - 47.9 percent) of the total amount of budget spending. The expenditures only in the social welfare sphere are 15.9 billion dram ($43 million) or 27.2 percent (in 2008 - 25.9 percent) of the total spending. Compared to 2008, the expenditures in the social sphere increased by 2.4 billion dram ($6.9 million) or 17.4 percent, and the total spending from the state budget by 11.5 percent.

http://armenianow.com/?action=viewArticle&AID=3609&CID=3484&IID=1227&lng=eng

[Federate]

Re: Armenia's Economic Pulse

Armenia’s New “Chickens”


100 ostriches have been brought to Armenia to test their adjustability to the climate. According to the importer’s report, the new inhabitants of our sunny land are happy and have already laid eggs “currently of great demand in the market”. Ostrich breeding promises to give a new perspective to the export of domestic production (meat, eggs, skin and feathers, and even bones are reported to be quite useful and valuable!).

[Ari]

Re: Armenia's Economic Pulse

cbf reading through everything

how are we doing are we still growing or are we going to be in recession too?

[Federate]

Re: Armenia's Economic Pulse

cbf reading through everything

how are we doing are we still growing or are we going to be in recession too?

In recession, our growth is schedule to be 0% this year if things don't turn around soon.

[hipeter924]

Re: Armenia's Economic Pulse

NZ is scheduled to drop around 1% or so by next year, and pick up again by 2011.

I hate recessions.

[Federate]

Re: Armenia's Economic Pulse

These are two among the many mega-projects Armenia and Iran are taking part in and their importance cannot be understated.
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Armenia-Iran power line is under way

YEREVAN, Armenia, March 25 (UPI) -- Design work on the third Iranian-Armenian power line is complete, and construction can begin soon.

Construction on the line could begin in early May, Armenian Minister of Energy and Natural Resources Armen Movsisyan said.

Funding will be provided by the Export Development Fund of Iran, the ArmInfo news agency reports.

The cost of the project is about $100 million, and it is expected to be completed in about two or three years.

The power line will be about 250 miles long, including 186 miles along Armenia and 62 miles along Iran's territory.

The line will be capable of transmitting 400 megawatts.

http://www.upi.com/Energy_Resources/2009/03/25/Armenia-Iran_power_line_is_under_way/UPI-41691237989246/

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Iran-Armenia pipeline construction starts

TEHRAN, March 25 (UPI) -- Armenia began construction on a 186-mile pipeline to bring oil products from the Tabriz refinery in northern Iran in exchange for electricity.

"The pipeline would be a safe route for importing oil products to Armenia that will increase security of energy supply and decrease the cost of fuel import," Armenian Energy Minister Armen Movsisyan said.

The project would bring 81 billion cubic feet of natural gas from refineries in Tabriz each year, which is about the same amount Armenia imports from Russia currently through Georgia.

Armenia will exchange 3 kilowatts of electricity with Iran for each cubic meter (35.3 cubic feet) of oil products, Iran's Press TV reports.

Both sides signed a series of agreements in the energy sector and tourist industry in December. A March 2007 deal outlined the provisions for an 87-mile natural gas pipeline meant to relieve Armenia's dependency on Russian resources.

Europe and the surrounding region have moved to diversify the energy transit sector following a gas dispute between Ukraine and Russia that left European customers without gas for weeks in January.

http://www.upi.com/Energy_Resources/2009/03/25/Iran-Armenia_pipeline_construction_starts/UPI-81281237989485/