Armenia's Economic Pulse

[ninetoyadome]

Re: Armenia's Economic Pulse

ARMENIA: YEREVAN MULLS FISHING MORATORIUM
3/23/10

Armenia is considering the introduction of a three-year ban on fishing in Lake Sevan to save the lake’s diminishing fish population.

Unrestrained fishing and water drainage from the lake has depleted Sevan’s salmon and trout population, according to Boris Gabrielian, the director of Armenia’s Hydrology and Ichthyology Institute. The lake’s salmon population has shrunk by almost six times since 1980, the Kavkazsky Uzel news website quoted Gabrielian as saying on March 22.

A Soviet-era irrigation plan has also supposedly damaged the lake’s ecosystem. One of the world’s largest high-altitude lakes, Lake Sevan contains 34 billion cubic meters of water.

Authorities plan to introduce tighter licensing rules for fishing, as well as enforce fishing quotas. Vladimir Movsisian, the head of an ad hoc government committee to help Sevan, said that a three-year fishing embargo would allow fish to spawn and enable the fry reach maturity, Kavkazsky Uzel reported.

http://www.eurasianet.org/departments/news/articles/eav032310a.shtml

[Haykakan]

Re: Armenia's Economic Pulse

ARMENIA: YEREVAN MULLS FISHING MORATORIUM
3/23/10

Armenia is considering the introduction of a three-year ban on fishing in Lake Sevan to save the lake’s diminishing fish population.

Unrestrained fishing and water drainage from the lake has depleted Sevan’s salmon and trout population, according to Boris Gabrielian, the director of Armenia’s Hydrology and Ichthyology Institute. The lake’s salmon population has shrunk by almost six times since 1980, the Kavkazsky Uzel news website quoted Gabrielian as saying on March 22.

A Soviet-era irrigation plan has also supposedly damaged the lake’s ecosystem. One of the world’s largest high-altitude lakes, Lake Sevan contains 34 billion cubic meters of water.

Authorities plan to introduce tighter licensing rules for fishing, as well as enforce fishing quotas. Vladimir Movsisian, the head of an ad hoc government committee to help Sevan, said that a three-year fishing embargo would allow fish to spawn and enable the fry reach maturity, Kavkazsky Uzel reported.

http://www.eurasianet.org/department...v032310a.shtml

I guess i will have to fish it some other time then hehe.

[Haykakan]

Re: Armenia's Economic Pulse

ARMAVIA LAUNCHES FLIGHTS TO ISRAEL

/PanARMENIAN.Net/
29.03.2010 11:48 GMT+04:00

/PanARMENIAN.Net/ Extending the geography of its flights, Armavia
Air Company presented Yerevan-Tel-Aviv-Yerevan flight on March 28.

According to Mikhail Baghdassarov, the company President, the regular
flight will allow promoting contacts between the two countries and
will rather ease Armenian citizens' trips to Israel. At the same
time, Mikhail Baghdassarov expressed hope that Armenia's cultural
and historical spots will be of keen interest for Israelis.

Edgar Karapetyan, the company's Commercial Director, noted that the
flights will be conducted twice a week, on Thursdays and Sundays,
by A320 and A319 aircrafts. The tickets will cost 350 euros in
both directions. The flight will last up to 2 hours, which will
significantly save passengers' time, as previously they had to fly
from Tbilisi.

Armavia's first plane left Yerevan for Tel-Aviv with more than 60
passengers on board, the Company's press office reported.

Armavia Company is Armenia's national air carrier, which fully complies
with the international requirements of IATA. Currently, Armavia
conducts over 340 flights per month to 35 destinations in 20 countries.

[Haykakan]

Re: Armenia's Economic Pulse

UNITED ARMENIAN FUND
1101 N. Pacific Avenue # 204
Glendale, CA 91202
Tel: 818.241.8900
Fax: 818.241.6900


March 27, 2010

UAF's 155th Airlift Delivers $4.7 Million of Aid to Armenia


Glendale, CA - The United Armenian Fund's 155th airlift arrived in Yerevan
on March 27, delivering $4.7 million of humanitarian assistance.

For this flight, the UAF itself collected $4 million of medicines and
medical supplies donated by various charities, including AmeriCares ($3.8
million), Catholic Medical Mission Board ($240,000), and Health Partners
International of Canada ($45,000).

Other organizations which contributed goods for this airlift were: The
Armenian EyeCare Project ($300,000), Armenian Technology Group ($70,000),
Armenian Relief Society-Western Region ($59,000), Fund for Armenian Relief
($33,000), St. Vartanantz Apostolic Church ($26,000), Dr. Samuel Malayan
($25,000), and Bay Area Friends of Armenia ($22,000).

Also contributing supplies to this airlift were Armenia Fund USA ($17,000),
Armenian Missionary Association of America ($15,000), American University of
Armenia ($13,000), Eastern Prelacy ($12,000), Fletcher School of Law
($11,000), Vartan Gregorian ($11,000), Dr. Hagop Hovaguimian ($9,000), and
Dr. Viken Garabedian ($9,000).

Since its inception in 1989, the UAF has sent $588 million of humanitarian
assistance to Armenia on board 155 airlifts and 1,783 sea containers.

The UAF is the collective effort of the Armenian Catholic Eparchy, Armenian
General Benevolent Union, Armenian Missionary Association of America,
Armenian Relief Society, Diocese of the Armenian Church of America, Prelacy
of the Armenian Apostolic Church of America, and The Lincy Foundation.

For more information, contact the UAF office at 1101 North Pacific Avenue,
Suite 204, Glendale, CA 91202 or call (818) 241-8900.

[Haykakan]

Re: Armenia's Economic Pulse

GOVERNMENT SHOULD FIND "GOLDEN MEAN" BETWEEN INTERESTS OF FUTURE PENSIONERS AND GOVERNMENT RISKS

ArmInfo
2010-03-30 15:12:00

ArmInfo's interview with Hakob Hakobyan, Head of the Parliamentary
Commission for Social Affairs

Mr. Hakobyan, what are the possible risks of the pension system reform?

First, the state budget will envisage as much funds for the pensions
as the additional accumulative funds will collect, in particular, 5%
of the salary of the citizens permanently working in Armenia will
be transferred to the fund. A similar amount will be provided to
the pension fund by the state budget every month. Here are the risks
connected with the reform: first, if we do not guarantee return and
profitability of the amount, we will cause damage to our citizens
proving budgetary funds without guarantees. If we guarantee safety
of those amounts, in 5 or 10 years the budget will prove to be under
additional burden of liabilities, which is dangerous for the country.

In the first case, there is a risk of damaging the government
reputation among the population, whereas in the second case, the
country is endangered.

How will the new system fight shady employment?

One of the ways to fight shady employment is to change the current
pension system based on the basic pension plus working period and to
allocate pensions basing on the amount charged from the salary. If
a citizen agrees with his employer to "cut" his salary to reduce the
5% transfer to the accumulative fund, the government will naturally
provide less to his pension account. One of the positive sides of
the bill is creation of mechanisms that will make citizens declare
their salary.

The problem is in the lack of public confidence in the government,
isn't it?

The package of relevant bills is currently under discussion. The
principles have not been specified yet. After the first discussion,
both the government and the parliament have arrived at a conclusion
that the package must be guaranteed not to infringe public interests.

What makes the government refuse the current pension system?

The size of pension of the citizens should be conditioned by the
taxes paid by them over their working activity. As we know, the
present system does not take into account the salary size. It is
illogical in some sense, as the paid taxes, which condition the size
of pension, should be the result of the work of citizens. The working
experience was the only way of settlement, but this principle is not
so much effective because of several impartial reasons. If payments
of citizens are not returned in the form of pension, naturally,
citizens will not be interested in making social payments.

Will the pension age grow given the ageing of the population?

No such issue is currently discussed. Increasing of the pension age is
connected not only with increasing in the number of old citizens. The
mechanism of determining the pension age is more complicate and cannot
depend just on the ageing of the population. The problem is settled
through comparison of the physical and mental abilities of people.

How efficiently is the social system of Armenia protected against
misappropriations by officials?

Undoubtedly, there are drawbacks today to be promptly eliminated.

According to the Sustainable Development Program, which replaced the
Strategic Poverty Reduction Program, 85 % of the families registered
in the allowances system rate are among the extremely poor ones. The
authorities should perform a great work to overcome this poverty
level. These problems cannot be solved at once, and it is necessary
to find the right ways. The government developed a sustainable
development program to be able to eliminate the drawbacks in the
system and conduct a targeted social policy.

How to prevent outflow of employable population from Armenia not to
lose the participants in the new pension system?

Last year the government undertook unprecedented measures of support
to small and medium-sized business through lending, which will lead
to creation of new jobs. Those and other measures will create an
effective mechanism of preventing outflow of labor force from Armenia.

Indeed, the country cannot interfere into internal affairs of another
country. For instance, we cannot prevent toughening of conditions of
migration flow in Russia. However, the government is able and must
take measures to prevent outflow of employable population.

How tangible are such measures, in particular, lending to SMEs?

It is difficult to make any assessment now, since capital invested in
the market does not bring fruits at once. I think that the 8 billion
drams growth of tax revenues for Jan-Feb 2010 was a good indicator
of the efficient of the government measures.

But SME lending became possible at the expense of increasing the
country's foreign debt...

Armenia's foreign dept totals 46% of GDP. It is a significant amount,
indeed, but not dangerous. I think that if the Armenian government
manages to use the loans that help creating jobs and increasing tax
revenues reasonably, the country's solvency will considerably grow.

The opposition constantly criticizes the government for the growing
foreign debt. What are the real opportunities of its service?

The opposition, as a political force, expresses its attitude to
the ongoing processes in the country, any action of the country's
leadership may become an object of criticism. Healthy criticism
ensuring the balance of forces is a normal phenomenon in all countries

[Haykakan]

Re: Armenia's Economic Pulse

FINANCE MINISTER: ARMENIAN ECONOMY STARTS RECOVERING

/ARKA/
April 8, 2010
YEREVAN

Armenian economy has already started recovering, Armenian Finance
Minister Tigran Davtyan said Wednesday in National Assembly.

"Armenia has already stabilized its economy and is now embarking on
recovery. This process will take certain time from us," he said.

The minister said that a precipitous fall in macroeconomic indicators,
high social tension and economic difficulties are main characteristics
of any crisis.

Davtyan thinks that Armenia has already come out of the crisis and
the national economy started growing this year.

He said that the country reached the peak of the crisis in July 2009,
but in August stabilization began.

The minister said that signs of recovery are already visible, and
year-on-year growth of economic indicators was seen yet in January
2010.

According to National Statistical Service of Armenia, 18.5% economic
decline was recorded in the country in Jan-July 2009, and GDP was
amounted to AMD 1417.1 billion ($3789.6 million).

GDP reduced 18.4% in Jan-Aug 2009 to AMD 1761.9 billion ($4987.1
million).

Davtyan said that recovery of the economy is a time-consuming process,
which needs great efforts.

"I think we need one or one and a half year to reach pre-crisis
indicators," he said. Armenia recorded 3.1% year-on-year economic
growth in Jan-Feb 2010. GDP amounted to AMD 321650 million in
current prices and index deflator was recorded at 110.6%. ($1 =
AMD 401.20).

[Haykakan]

Re: Armenia's Economic Pulse

GOVERNMENT OF ARMENIA TOUGHENING CONTROL OVER BIG BUSINESS

ArmInfo
2010-04-08 13:50:00

ArmInfo. The Government of Armenia is toughening fiscal control over
big business to make it more transparent, Armenian Prime Minister
Tigran Sargsyan told the government on Thursday.

He said that on April 1 the Finance Ministry published the list of
285 big taxpayers in Armenia having over 1 billion drams turnover
for 2009. "This list is yet to be specified on the basis of the
submitted reports and some companies may found themselves out of
the list and another ones may be included in it," Tigran Sargsyan
said. The government is often criticized for insufficient control
over big companies. "I accept this criticism. It is a big evil for
every state to have big companies that avoid taxes, shaking the basis
of the country and hinder development of SMEs," he said. He recalled
that the president of Armenia had repeatedly charged the ministries
of finance, economy and the government staff to enhance analysis to
reveal the companies underpaying taxes.

"We have been trying to hire human resources able to make such
analysis, but the work carried out is unfortunately not satisfactory
yet. The Finance Ministry is to publish the results of its surveys
within a year i.e. to present comparison of the indicators of big
taxpayers for 2008 and 2009," the prime minister said. "We are
concerned with the fact that the main burden was laid on the SMEs
in the crisis year and not on the big business and we must dispel
all the doubts on big companies," T. Sargsyan said. Publication of
reports will make it possible for the public to control over the
government's work and get information on fulfillment of commitments
to the government by big companies. "We have still much to do in this
area as well," the prime minister said. In addition, he said, a bill
of amendments to the Law On Taxes is currently in the parliament. The
bill stipulates that information received from a third party may
also be used to make objective assessment of the tax liabilities of
big companies. "I think that the bill must be approved without any
delay," Tigran Sargsyan said. He explained that indirect information
implies data on electricity and water consumption, communal payments
that are compared with the gross volume of production at big companies.

Tigran Sargsyan said that the most effective instrument for assessment
of big companies is to make them transparent and the government is
implementing a relevant strategy. "In addition, commissions on ethics
are set up to make it possible for the government to control over
activity of parliamentarians and ministers not to allow them directly
run business. This is what we need. The possibilities of the Finance
Ministry in this area must be increased," the prime minister said.

[Haykakan]

Re: Armenia's Economic Pulse

IMF DISSATISFIED WITH ECONOMIC REFORM IN ARMENIA

ArmInfo
2010-04-09 15:43:00

ArmInfo. The International Monetary Fund (IMF) is dissatisfied with
the economic reform rates in Armenia, IMF Resident Representative in
Armenia Guillermo Tolosa told media on Friday.

Unfortunately, he said, the rates of reforms in some sectors of
economy carried out by the government are lower than were expected
given the IMF's support to the government. He said that tax collection
is still low in Armenia and there is need for better reforms in the
tax administration. G. Tolosa believes that control over big business
should be toughened. He said the IMF shares the concern of the Armenian
Prime Minsiter who has recently said that tax burden is laid on small
and medium-sized enterprises rather than big companies.

[Haykakan]

Re: Armenia's Economic Pulse

Russian-Armenian innovation center to be opened in Yerevan on April 15

2010-04-09 16:12:00


ArmInfo. The Russian-Armenian innovation center will be opened in
Yerevan on April 15, Head of the Armenian Office of the Federal Agency
for CIS Affairs, Compatriots Abroad and International Humanitarian
Cooperation, Viktor Krivopuskov, told journalists, Friday.

According to him, the representatives of large Russian technological
companies will attend the ribbon- cutting ceremony of the center. The
center will allow Armenian scientists to sell their inventions and
patents in the market more effectively. "Our colleagues from the
Armenian Chamber of Commerce and Industry will confirm that they
receive a lot of patents for registration", he said and added that
Armenia's task is to make innovators launch them not only in Armenia
and even CIS, but also other countries. "Nobody will deny that at
present innovations are one of the most valuable resources for any
country",- said Krivopuskov.

To recall, the center is to become the first joint center for
innovation cooperation within the frames of the Interstate target
program on innovation cooperation of CIS until 2020. According to the
members of the working group for elaboration of the Interstate target
program on innovation cooperation of CIS, the program will allow CIS
countries to enhance labor efficiency 2.5 times by 2020, reduce GDP
energy intensity by 70%, increase expenditures on science by 3% of
GDP, and those on education - by 6% of GDP. The priority spheres of
development are energy, machine building, aerospace industry,
transport, communication, agriculture, biotechnologies and medicine.

[Federate]

Re: Armenia's Economic Pulse

5.5% GDP growth registered in Armenia in 2010 first quarter
April 20, 2010 - 15:19 AMT 10:19 GMT

PanARMENIAN.Net - According to updated statistical data, Armenia’s GDP was 5.5% higher in January-March 2010 as compared with the same period of 2009.

The RA National Statistical Service reported that GDP amounted to AMD568.1 billion. At the same time, the country’s GDP increased by 43.1% in March as compared with February.

Besides, consumer prices were 8.4% higher in the first quarter of 2010 as compared with the same period of last year. Inflation rate reached 8.4% in March 2010.

The 2010 Armenian national budget envisages 1.2% economic growth and 4±1.5% inflation.

http://www.panarmenian.net/eng/economy/news/47388/55_GDP_growth_registered_in_Armenia_in_2010_first_quarter

----------------------------------------------------------
Quo vadis?
17:14 / 04/19/2010

By Albert Khachatryan

After the Government’s economic policy resulted in an ignominious failure, Armenian high-ranking officials have “taken heart of grace” and are now issuing optimistic forecasts one after another. The reason for their enthusiasm is the GDP growth registered early this year, which to a great extent was accounted for by a major increase in industrial output.

Indeed, industrial output showed an increase of as much as 9.4% (!) this January-February as compared with the corresponding period last year. The progress is really impressive, with a 7.8% decline in the Armenian industry in 2009 considered.

The minerals industry, with its share in the total industrial output being 19.2%, (8.3% last January-February) registered a 45.9% increase. No doubt, that was the immediate result of the positive changes on the world ferromolybdenum market. So we would greatly exaggerate if we put the progress down to the economic policy implemented in the country.

The processing industry is an undisputed leader in the Armenian industrial sector, with its share being 56.4% this January-February. The processing industry registered a 9.2% increase in output and seems to have overcome last year’s stagnation and be making up the leeway. This is, however, at first blush.

In the processing industry the greatest progress was achieved by the enterprises that are closely cooperating with the extractive industry. Specifically, the output of hard nonmetallic minerals showed a 98% increase (its share in the Armenian industry being 4.2%); the output of base metals showed a 6.7% increase (16.2%), etc..

As regards the food industry, its figures leave to be desired. This January-February as compared with last January-February, the food output showed a 0.1% decrease, output of beverages a 2.7% decrease, and tobacco output a decrease of as much as 12.9%.

As regards beverages, the output of vodka, the most popular hard drink in Armenia, showed a 60.5% decrease. This fact could only be welcomed if the consumption of the “demon drink” reduced as much. But such significant progress can hardly be achieved in one year. So we can be sure that Armenian citizens go on drinking and smoking — to an extent imported drinks and baccy.

If continue, the aforementioned market trends threaten the Armenian market with import domination and a worse situation in the import substitution industries. Last year’s USD revaluation against the AMD was expected to improve the situation in the industries, which, however, did not happen.

The Armenian light industry is in a similar deplorable state. This January-February the symbolic textiles output showed a 48.8% decrease, and the clothing output a 21.7% decrease. So the USD revaluation did not even stabilize the situation in this industry. So we should not be euphoric about the industrial production index in Armenia. As we have mentioned above, a better situation in the raw-materials industry mainly accounts for the better index.

As regard the processing industry, of interest is the following fact: this January- February as many metal-cutting machine tools were produced in Armenia as last January-February – one machine tool in two months! So what diversification of production, and related export, can we dream of if the Armenian industry is only based on ferromolybdenum, copper concentrate, aluminum foil and brandy?

T.P.

http://news.am/en/news/19402.html