Armenia's Economic Pulse

[Shant03]

Re: Armenia's Economic Pulse

Eurasian Stabilization Fund Extends $300-Million Loan to Armenia

YEREVAN (ARKA) — The Eurasian Stabilization Fund’s board has decided to extend a $300-million loan to Armenia, Russian Finance Minister Anton Siluanov told journalists in Yerevan on Tuesday.

On November 4, 2015, the Armenian government and the Eurasian Development Bank signed a $300-million loan agreement.

These financial resources are intended for neutralization of possible short-term and mid-term risks in implementing foreign exchange policy and for ensuring as fast economic growth as possible.

The loan is to be provided for 20 year with a ten-year grace period at a 2% annual interest rate.

“Today some loan agreements were discussed and it was decided to extend a budget-supporting loan to Armenia,” the minister said. “The first tranche will amount to $100 million.”

Siluanov said that the board also upheld a number of investment projects for irrigation systems and construction of a water reservoir with a credit line of $40 million.

It was decided to continue investment financing of infrastructural projects not only in Armenia, but also in Belarus and Tajikistan.

The Russian minister said that the Eurasian Stabilization Fund’s board will continue considering these issues with taking into account specification structural measures in these countries. It will also continue providing financial assistance after their implementation.

“Such an approach is an effective instrument for supporting reforms in these countries economies,” he said.

Armenian Finance Minister Gagik Khachatryan, on his side, said the stabilization financial resources to be provided to Armenia will be used for intended purpose.

He also stressed the importance of the ESF-approved project of construction of a water reservoir in Mastara for development of the country’s agriculture.

The Eurasian Stabilization Fund will lend another $40 million to Armenia for modernization of irrigation infrastructures. The total budget of this five-year project amounts to $50 million, of which $10 million will be provided by the Armenian government.

The loan is to be provided for 20 years with a ten-year grace period at a 2% annual interest rate. The project will be launched in 2016.

The Eurasian Stabilization Fund (earlier Eurasian Anti-Crisis Fund) was established by Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan in 2009.

The fund is run by the Eurasian Development Bank, which was established by Russia and Kazakhstan in January 2006 for supporting its member countries’ market economies, contributing to their sustainable growth and making economic and trade ties among these countries.

[Mher]

Re: Armenia's Economic Pulse

Foreign investments in Armenian economy grow 36.6% to AMD 141.5 billion

YEREVAN, December 1. /ARKA/. About AMD 141.5 billion has been invested in Armenia's economy from abroad not through banks and without state administration over the first nine months of this year – 36.6% more than was invested in the same period a year earlier, the National Statistical Service of Armenia reports.

Direct foreign investments in Armenia's economy totaled AMD 125.1 billion in Jan-Sep 2015 against AMD 107.17 in the same period a year before.

According to the National Statistical Service of Armenia, Switzerland was the biggest investor in Armenia’s economy at the mentioned period of this year. Its investments in Armenia’s real sector amounted to about AMD 44.6 billion and its direct investments AMD 41.6 billion.

Germany and Luxemburg were second and third largest inventors in Armenia’s economy in Jan-Sept 2015 – they invested AMD 29.7 billion and AMD 28.1 billion respectively.

http://arka.am/en/news/economy/foreign_investments_in_armenian_economy_grow_36_6_to_amd_141_5_billion/

Very big deal
Direct foreign investment decreased 2009-2013, and increased only slightly last year

[Haykakan]

Re: Armenia's Economic Pulse

YEREVAN IS AMONG TOP TEN MOST POPULAR CITIES FOR SPENDING NEW YEAR HOLIDAYS WITH CHILDREN

YEREVAN, November 30. /ARKA/. Armenia's capital city Yerevan is
rated by Russian tourism service Travel.ru as one of the top ten most
popular cities for spending New Year holidays with children. Other
cities are Tallinn (Estonia), Minsk (Belarus), Riga (Latvia), Prague
(the Czech Republic), Helsinki (Finland), Berlin (Germany), Rome
(Italy), Vienna (Austria) and Vilnius (Lithuania).

The cheapest countries for traveling with children are Belarus
(2,200 rubles per day for accommodation), Armenia (2,500 rubles)
and China (2,700 rubles). Prague offers the longest city tour -
one week on average.

The top three most popular beach destinations for spending New Year
holidays with children are Phuket (Thailand), Bali (Indonesia) and
Dubai (UAE). The longest New Year vacation with children- 10 days
are booked for Thailand.

The rating is compiled based on reservation of hotels and apartments
by independent travelers with children from December 26, 2015 to
January 10, 2016. -0-

http://arka.am/en/news/tourism/yerevan_is_among_top_ten_most_popular_cities_for_spending_new_year_holidays_with_children/

[Haykakan]

Re: Armenia's Economic Pulse

RUSSIA'S IMPORT SANCTIONS ON TURKEY OPEN NEW OPPORTUNITIES FOR ARMENIA TO INCREASE EXPORTS OF AGRICULTURAL GOODS TO RUSSIA

YEREVAN, November 27. /ARKA/. Armenian minister of agriculture Sergo
Karapetyan said today Russia's decision to impose import sanctions on
Turkey and cancel major investment projects over the downed Russian
Su-24 fighter jet in Syria may open up new opportunities for Armenia
to increase exports of agricultural goods to Russia.

The ministry said Karapetyan discussed this issue with David Ghazaryan,
the director of Spayka company, one of the largest exporters of
Armenian agricultural products.

"As we know, Russia has decided to limit the imports of Turkish
agricultural products. This is creating new opportunities for Armenian
producers in terms of increasing the volume of exports to the Russian
market. Because of upcoming New Year holidays the demand for the
products is also increasing, and this is why we need to develop short-
and long-term programs to increase production and exports,' Karapetyan
is quoted as saying in a press release.

According to Karapetyan, Armenian agricultural products, which are
of higher quality than Turkish products, could not compete with the
latter because of higher cost. He said Armenia can increase exports
of fresh fruit and vegetables as well as meat products.

According to the National Statistical Service, Armenia's export in
the first 9 months of 2015 declined by 0.9% from the year before to
$1.095.6 billion. Exports from Armenia to Russia in the reporting
period decreased by 27.8% to $158.5 million. -0-

http://arka.am/en/news/economy/russia_s_import_sanctions_on_turkey_open_new_opportunities_for_armenia_to_increase_exports_of_agricu/

[Mher]

Re: Armenia's Economic Pulse

Armenia’s gross international reserves grew by 5% in Q3 to $1.625.5 billion


YEREVAN, November 26. /ARKA/. At the end of the third quarter Armenia’s gross international reserves stood at approximately $1.625.5 billion, having grown by 5.1% from the end of the previous quarter when they were worth $1.545.7 billion, the Central Bank of Armenia said.

In July Armenia’s gross international reserves increased by 10%, while in August and September they fell by 3.3% and 1.2% respectively.

Armenia’s Special Drawing Right (SDR) at the IMF at the end of the reporting period stood at approximately $409,100, down from $996,000 at the beginning of third quarter.

http://arka.am/en/news/economy/armenia_s_gross_international_reserves_grew_by_5_in_q3_to_1_625_5_billion/

[Haykakan]

Re: Armenia's Economic Pulse

VISA FREE REGIME BETWEEN ARMENIA AND BRAZIL ENTERS INTO FORCE

20:55, 25 November, 2015

YEREVAN, NOVEMBER 25, ARMENPRESS. The agreement on visa free regime
between Armenia and Brazil entered into force. "Aremenpress" reports
the official Facebook page of MFA Armenia informs about this.

According to the agreement reached between the Governments of the
Republic of Armenia and Federal Republic of Brazil, the citizens
of Armenia and Brazil are exempt from the requirement to obtain an
entry visa for entering the territories of one another, leaving it
and using it as a transit route starting from November 25. The visa
free regime is valid for 90 days and can be extended for another 90
days with the condition that the overall period of remaining in the
country must not exceed 180 days during 12 months.

[Zeytun]

Re: Armenia's Economic Pulse

Is the world to blame for the underdevelopment of Armenia?

Nov 23 - 1:11 pm Susanna Petrosyan, Yerevan. Exclusively for Vestnik Kavkaza

The Armenian parliament is discussing the draft of the state budget for 2016. The draft requires real growth of GDP at a level of 2.2%, inflation at a level of 4% and the budget deficit at a level of 3.5% of GDP. An increase in salaries and pensions is not required. The balance between foreign debt and GDP may reach 50%. Revenues are planned at a level which is lower than in 2015, while the expenditures of the state project will exceed the similar index of 2015 by 68.1 billion drams ($1=480 drams). Prime Minister Hovik Amrahamyan stated that the principles of realism and stability lie at the basis of the document – the draft has a clear social direction, which is confirmed by the fact that half of the whole volume of budget expenditures will be spent on education, social security and healthcare.

Many experts are worried about the fact that for the first time in the last 10 years a decline has been registered in the revenue part of the budget. Specialists pay attention to the growing problems with the foreign debt, and its volumes may exceed 50% of GDP. According to the economist Vilen Khachatryan, the country will enter 2016 with a debt of $5.122 billion; it is $680 million bigger than the sum at the beginning of 2015: “The budget requires paying 99 billion drams in interest. 2016 is a year for providing economic growth at the expense of debts, and the pace of growth will gradually reduce. How can we speak about development?”

The economist Ashot Yegizaryan has similar views. According to him, the state has no sources for fulfilling its duties on existing debts, yet it creates new debts: “Indexes of the state budget draft for 2016 indicate that Armenia is entering a phase which doesn’t provide economic growth. In reality, we are in a recession.”

The Finance Minister, Gagik Khachatryan, thinks that it is difficult to imagine that all problems will be solved due to the indexes required by the draft: “Unfortunately, there is no such opportunity.” According to him, the reasons for the negative trends in the economy are certain objective internal factors, such as a decrease in the consumption level and economic activity, as well as several external factors – a reduction in investments, problems in the Russian economy, a decrease of transfers from Russia.

Over the past years, representatives of the Armenian authorities, some experts and the government-controlled media have been actively promoting the idea that the majority of the economic problems of the country are explained by external factors. Previously, all the troubles were connected with the world financial crisis; today Russia is called the center, as its economy greatly influences the Armenian economy.

Some ministers of the economic bloc refer to the unpredictability of the consequences of Armenia’s membership of the Eurasian Economic Union (EAEU). However, two years ago, when the President decided to join the EAEU, there were absolutely the opposite assessments. Such a turn in approach cannot be called responsibility for decisions taken. However, problems in the Armenian economy existed long before it joined the EAEU. For example, the growing influence of monopolies and the absence of real competitive conditions in Armenia cannot be connected with the current problems in Russia or with its membership of the EAEU.

“I have participated in parliamentary discussions of the state budget draft four years in a row. And each time I hear one and the same phrase – that the slow pace of economic growth is connected with external factors. Our country is not developing, and it is not the world’s fault. In 2008 Serzh Sargsyan became the president and promised economic growth of 7%, but in general, summing up all these years, we have economic growth at a level of 15.4%. It is a disaster; our country doesn’t move forward,” the opposition MP, former Prime Minister Grant Bagratyan says. According to him, the budget has grown by only 6% over the past 9 years. “We should deduct the total inflation of 55% over 9 years from 61% of the budget growth in the national currency. It appears that the real growth of the budget is only 6% over the past years,” Bagratyan says.

According to the economist Vaagan Khachatryan, the draft budget for 2016 reveals the incompetence of the current economic system: “The policy provided by the authorities cannot provide either economic growth or attract investment. A favorable environment, which is absent, is needed for investments. There are no effective state institutions, no independent court system, or trust in the system in general. The budget draft’s content is absolutely uninteresting.”

The former Foreign Minister, an MP from Prosperous Armenia Faction, Vardan Oskanyan, thinks that economic growth can be provided, despite any external factors: “It is necessary to focus on economic growth, providing a broad monetary and fiscal policy, even if the deficit grows. A certain concept and a program of the country’s development are necessary for a successful fulfillment of the policy.”

However, the government hasn’t found the political will to write a real program for the country’s development, to take measures to encourage economic growth, including reforms and implementation of programs for development of infrastructure; the authorities also cannot restore the trust of investors and the population. As a result, over the past 7-8 years, the government blames its failures or passivity on external factors.

http://vestnikkavkaza.net/analysis/Is-the-world-to-blame-for-the-underdevelopment-of-Armenia.html

[londontsi]

Re: Armenia's Economic Pulse

Introduction "Mergelyan" Club

Published on 16 Sep 2015

New Technology Education Fund in partnership with Technology and Science Dynamics implements meeting-discussions, project presentations with young researchers, scientists and techies by supporting them in the realization of their innovative ideas. Even when they seem impossible or when they require significant financial investments.

Follow the Club Activities: http://ntefund.am/en/our-projects/show/10

[londontsi]

Re: Armenia's Economic Pulse

Published on 16 Sep 2015

Technology and Science Dynamics has built an advanced display manufacturing facility in one of the two Free Economic Zones of the Republic of Armenia with capabilities in R&D and high-level product design, manufacturing and assembly. TSD High-Tech Manufacturing Plant is the first and the only facility in CIS, Caucasus and Middle East with the abilities to produce various types of high-tech electronics and provide high-level research and development service.

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[londontsi]

Re: Armenia's Economic Pulse

ARMENIAN IT COMPANIES RETURN FROM EUROPEAN AUTO RACING WITH 300 AGREEMENTS

http://armenpress.am/eng/news/826513/armenian-it-companies-return-from-european-auto-racing-with-300-agreements.html

12:32, 20 November, 2015

YEREVAN, NOVEMBER 20, ARMENPRESS. Armenia's IT sector's race
participants returned with more than 300 preliminary agreement s. As
"Armenpress" reports, the organizers introduced the results of a
month-long journey and emphasized the further activity.

The European auto racing ICT" project was passed from October 4 to
November 5. The program was attended by 36 delegates from the 26 ICT
companies. The car race included 18 countries. The project has been
organized 12 and more than 30 official individual meetings in Vienna,
Katowice, Prague, Berlin, Paris, Marseille, Zagreb, Milan, Belgrade
and Sofia.

Deputy Minister of Economy Emil Tarasyan mentioned that this is not
just a format of information technology achievements, but it was a
good format for presenting Armenia favorable investment climate which
must be continual involving the economy's other sectors.

Published on 20 Nov 2015

On October 4, 2015 Armenian ICT European Expedition delegation set out for a 32 day business trip through Europe. The delegation had a number of successful meetings in Vienna, Katowice, Prague, Berlin, Brussels, Paris, Marseilles, Milan, Zagreb, Belgrade and Sofia. As a result of meetings about 300 preliminary agreements and arrangements were made with the European Counterparts. The video material presented is the short overview of the whole trip in Europe. The continuation of the project will be in 2016 at USA and Canada!

Armenian ICT European Expedition was initiated by Technology and Science Dynamics in partnership with New Technology Education Fund with the support of the RA Government, namely with the support of the RA Ministry of Economy, RA Ministry of Foreign Affairs and RA Ministry of Diaspora. Additionally, the project was supported by the Government of Nagorno Kharabakh, Resso, Altacode, Arpinet companies, as well as with the financial support of Loft and Citymobile companies.

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