HayPost Director Gets Nod to Replace Bekor Papazyan

Levon Hayrapetyan

hetq
16:03, June 2, 2011

Bekor Papazyan, Executive Director of Armenia's National
Competitiveness Foundation, who tendered his resignation effective
June 15, will be replaced by Arman Khachatryan, who now runs HayPost.

June 2 was supposed to be Khachatryan's last day at the helm of
Armenia's postal service. HayPost hasn't said who will replace
Khachatryan as Managing Director.

The Corporacion America group of Eduardo Eurnekian, an Argentine
billionaire of Armenian descent, signed a long-term contract with the
Armenian government to manage HayPost. Its track record has been a
mixed bag.

The Armenian government has generally been disappointed with the way
HayPost has been run and one way to express its displeasure has been
the May 31decision to sack Converse Bank Board chairman: Armen
Ter-Tatshatyan and Board member Juan Pablo Gechidjian.

This decision will be ratified at the Board's annual meeting on July
30. Converse Bank will then affirm the changes.

Surprisingly, when we asked the Converse Bank's press office they said
that no pending changes to the Board were in the works.

The poor track record at HayPost is generally blamed not on the
Managing Director but on the fact that during the past 2.5 years no
investment had been made in the postal service.

During this period the licensed manager has taken $5 million from
HayPost; to pay salaries and other expenses.

Armenia belongs to the International Postal Union and one of its
conditions is that postal services operate transparently and publicly
publish their financial stats. HayPost publishes no such reports.

HayPost also is used to distribute pensions in Armenia. But since it
isn't a bank and doesn't hold on to cash, Converse Bank carries out
this function. The bank circulates money through the system - about
150 billion AMD per month.

HayPost receives no revenue for this service. On the other hand,
Converse Bank makes about $5 million per year from the deal.

By the way, Juan Pablo Gechidjian also serves as HayPost Managing
Board Chairman.

Hetq will have more to report on these and related matters.

We'll also discuss what Eurnekian's next move at HayPost might be.