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Armenia enters 2010 well-prepared
Weekly economic review for Dec. 19-26
26.12.2009 GMT+04:00
Armenia is ready to resist the second wave of crisis, RA Prime
Minister Tigran Sargsyan stated, summing up 2009 results. As Tigrah
Sargsyan noted: `The depth of the crisis can't be assessed or the time
for the second wave forecasted. Still, we have to be ready to face
it.' According to him, Armenia is prepared for the year 2010. `With a
balance of AMD 80 billion, stabilization fund of AMD 54 billion and EU
financial assistance of USD 100 million we have enough resource to
provide macroeconomic stability and face new challenges,' he stressed.
/PanARMENIAN.Net/ Armenia, being a solvent state, will be able to
receive additional assistance of donor organizations, as the country's
macroeconomic policy is highly assessed by international structures.
The year of 2009 was full of difficulties, but Armenia proved capable
to finish it with minimal losses, Tigran Sargsyan said.
`The global crisis could not bypass Armenia. It bared the weaknesses
of the republic's economy and taught useful lessons: to be more
resolute in carrying out reforms, economic diversification and
creating equal conditions for competition,' he said, summing up the
results of government's activities in 2009. `Although repeatedly
criticized, the government's anti-crisis program was recognized as
effective by international organizations.'
PM Sargsyan also dwelled on omissions, in particular, the slow pace of
reforms and delayed establishment of relevant institutions.
*
Despite the crisis and reduced GDP volumes, South Caucasian Railways
(SCR) CJSC managed to meet its targets, the company's General Director
Shekvet Shaydulin finds. SCR's long-term mission consists in becoming
an all-national transportation company dynamically enhancing its
effectiveness and quality of services rendered, he told Thursday a
resulting news conference in Yerevan.
*
2010 will be a year of renaissance for Armenia, President Serzh Sargsyan said.
`The financial crisis was a test for Armenian entrepreneurs.
Presently, the macroeconomic situation in the republic tends to
stabilize, what allows to forecast restoration of economy,
strengthening of defense potential and favorable resolution of social
and internal political issues,' he said during an annual meeting with
Armenian businessman.
*
Economic recession in Armenia will not exceed 15% in 2009, said Nerses
Yeritsyan, RA Minister of Economy. `This index is quite real,' he told
reporters in Yerevan.
According to National Statistical Service of Armenia, economic
recession in Armenia in January-November made 16%, with monthly index
at 6.6%.
*
Gross amount of agricultural production in Armenia decreased by 0.2%
in January-November 2009, compared with 2008 results, to comprise AMD
515,2 billion, Armenia's Agriculture Minister Gerasim Alaverdyan said,
summarizing 2009 results.
At the news conference, the Minister presented the situation with
basic agriculture spheres, noting that crop sector production volumes
grew by 0.2% to comprise AMD 333,5 billion. At the same time,
livestock sector production volumes decreased by 0,9% to comprise AMD
181,7 billion.
In 2009, special emphasis was put on seed production, stud breeding,
creation of tractor stations and establishment of anti-hail stations.
According to Gerasim Alaverdyan, the Ministry fulfilled tasks,
stipulated by 2009 state budget. Active works were conducted jointly
with international structures to provide technical assistance for the
development of agriculture in Armenia. Also, a number of international
agreement in agriculture sphere will be implemented in 2010.
*
3 road construction programs, with a total worth of AMD 39.8 billion
were implemented by Armenian Ministry of Transport and Communication
in 2009, Minister Gurgen Sargsyan stated.
The programs were as follows: AMD 9,9 were allocated for
reconstruction of 120 km. of roads and 6 bridges; USD 5.4 million were
provided by WB and Armenian Government for 100 km of local roads
construction, USD 16.92 were invested by RA Government and 47,92 by
Asian Development Bank for reconstruction of 227 km of roads. Part of
construction works stipulated by programs indicated will be completed
in 2009; programs will be finalized in 2010.
In this context, Minister Sargyan emphasized the regional importance
of North-South highway project implementation for connecting Yerevan
with Georgian ports of Poti and Batumi.
Armenia will receive USD 60 million tranche form Asian Bank of
Development to implement South North highway feasibility survey in
April 2010. Total value of the project will comprise USD 965 million,
with USD 500 million to be provided by ABD. `Highway construction will
allow for 30% transportation cost cutting,' he said.
Armenian Ministry of Transport and Communication reached certain
success in the sphere of taxi operations licensing and road traffic
order improvement, Transport and Communication Minister Gurgen
Sargsyan stated.
`In 2009, around 2 735 operating taxis were licensed, bringing AMD 20
million to Armenia's 2009 state budget, against AMD 12 million in
2008,' he told a news conference in Yerevan.
`The process will become more consistent in nature; we envisage making
further amendments in the sphere,' he concluded.
*
Considering corrections and adjustments introduced within this year,
South Caucasian Railways investments totaled 1.2 billion rubles in
2009, SCR Director General Shevket Shaydullin said.
`According to 2009 financial program, investments' volume was planned
at 1 billion 172 million rubles level. Yet, after correction and
adjustments introduced, total investments comprised 1 billion 254
million rubles, with 1 billion 26 million rubles allocated to
infrastructure and 227 million rubles to rolling stock,' he told the
news conference in Yerevan.
`By the year 2010, the company will completely meet concessionary
agreement -stipulated liabilities,' SCR Director General concluded.
*
The control service of Armenia does not supervise issue of sales slips
in entertainment facilities and restaurants, said Hovhannes Hovsepyan,
the head of control service at the RA presidential administration.
He informed that the state revenue committee has already addressed the problem.
Mr. Hovsepyan also said that shadow employment makes 29% in Armenia.
`There are companies which register elderly or disabled people as
owners in order to avoid tax payments,' he said.
*
HSBC Bank Armenia cjsc was declared Bank of the Year in Armenia for
2009, at The Banker's Bank of The Year Awards in London on 4 December
2009.
The criteria for choosing the winners included banks' financial
performance, innovation, new initiatives and general strategy over the
previous year.
Among the bank's achievements which have been considered by The Banker
were the 16.9 per cent rise in assets in 2008 and the bank's focus on
providing superlative customer service.
Tim Slater, Chief Executive Officer, HSBC Bank Armenia cjsc,
commented: `The bank continued its investments in technology and
infrastructure and introduced internet and telephone banking services
to Armenia. HSBC Bank Armenia now offers a full direct banking
proposition and a choice of branch, ATM, telephone and internet
banking for its customers'.
The world's local bank continues to work on the concept of 'your
branch that never closes' for customers living in Armenia and
elsewhere in the world.
Victoriya Araratyan
Weekly economic review for Dec. 19-26
26.12.2009 GMT+04:00
Armenia is ready to resist the second wave of crisis, RA Prime
Minister Tigran Sargsyan stated, summing up 2009 results. As Tigrah
Sargsyan noted: `The depth of the crisis can't be assessed or the time
for the second wave forecasted. Still, we have to be ready to face
it.' According to him, Armenia is prepared for the year 2010. `With a
balance of AMD 80 billion, stabilization fund of AMD 54 billion and EU
financial assistance of USD 100 million we have enough resource to
provide macroeconomic stability and face new challenges,' he stressed.
/PanARMENIAN.Net/ Armenia, being a solvent state, will be able to
receive additional assistance of donor organizations, as the country's
macroeconomic policy is highly assessed by international structures.
The year of 2009 was full of difficulties, but Armenia proved capable
to finish it with minimal losses, Tigran Sargsyan said.
`The global crisis could not bypass Armenia. It bared the weaknesses
of the republic's economy and taught useful lessons: to be more
resolute in carrying out reforms, economic diversification and
creating equal conditions for competition,' he said, summing up the
results of government's activities in 2009. `Although repeatedly
criticized, the government's anti-crisis program was recognized as
effective by international organizations.'
PM Sargsyan also dwelled on omissions, in particular, the slow pace of
reforms and delayed establishment of relevant institutions.
*
Despite the crisis and reduced GDP volumes, South Caucasian Railways
(SCR) CJSC managed to meet its targets, the company's General Director
Shekvet Shaydulin finds. SCR's long-term mission consists in becoming
an all-national transportation company dynamically enhancing its
effectiveness and quality of services rendered, he told Thursday a
resulting news conference in Yerevan.
*
2010 will be a year of renaissance for Armenia, President Serzh Sargsyan said.
`The financial crisis was a test for Armenian entrepreneurs.
Presently, the macroeconomic situation in the republic tends to
stabilize, what allows to forecast restoration of economy,
strengthening of defense potential and favorable resolution of social
and internal political issues,' he said during an annual meeting with
Armenian businessman.
*
Economic recession in Armenia will not exceed 15% in 2009, said Nerses
Yeritsyan, RA Minister of Economy. `This index is quite real,' he told
reporters in Yerevan.
According to National Statistical Service of Armenia, economic
recession in Armenia in January-November made 16%, with monthly index
at 6.6%.
*
Gross amount of agricultural production in Armenia decreased by 0.2%
in January-November 2009, compared with 2008 results, to comprise AMD
515,2 billion, Armenia's Agriculture Minister Gerasim Alaverdyan said,
summarizing 2009 results.
At the news conference, the Minister presented the situation with
basic agriculture spheres, noting that crop sector production volumes
grew by 0.2% to comprise AMD 333,5 billion. At the same time,
livestock sector production volumes decreased by 0,9% to comprise AMD
181,7 billion.
In 2009, special emphasis was put on seed production, stud breeding,
creation of tractor stations and establishment of anti-hail stations.
According to Gerasim Alaverdyan, the Ministry fulfilled tasks,
stipulated by 2009 state budget. Active works were conducted jointly
with international structures to provide technical assistance for the
development of agriculture in Armenia. Also, a number of international
agreement in agriculture sphere will be implemented in 2010.
*
3 road construction programs, with a total worth of AMD 39.8 billion
were implemented by Armenian Ministry of Transport and Communication
in 2009, Minister Gurgen Sargsyan stated.
The programs were as follows: AMD 9,9 were allocated for
reconstruction of 120 km. of roads and 6 bridges; USD 5.4 million were
provided by WB and Armenian Government for 100 km of local roads
construction, USD 16.92 were invested by RA Government and 47,92 by
Asian Development Bank for reconstruction of 227 km of roads. Part of
construction works stipulated by programs indicated will be completed
in 2009; programs will be finalized in 2010.
In this context, Minister Sargyan emphasized the regional importance
of North-South highway project implementation for connecting Yerevan
with Georgian ports of Poti and Batumi.
Armenia will receive USD 60 million tranche form Asian Bank of
Development to implement South North highway feasibility survey in
April 2010. Total value of the project will comprise USD 965 million,
with USD 500 million to be provided by ABD. `Highway construction will
allow for 30% transportation cost cutting,' he said.
Armenian Ministry of Transport and Communication reached certain
success in the sphere of taxi operations licensing and road traffic
order improvement, Transport and Communication Minister Gurgen
Sargsyan stated.
`In 2009, around 2 735 operating taxis were licensed, bringing AMD 20
million to Armenia's 2009 state budget, against AMD 12 million in
2008,' he told a news conference in Yerevan.
`The process will become more consistent in nature; we envisage making
further amendments in the sphere,' he concluded.
*
Considering corrections and adjustments introduced within this year,
South Caucasian Railways investments totaled 1.2 billion rubles in
2009, SCR Director General Shevket Shaydullin said.
`According to 2009 financial program, investments' volume was planned
at 1 billion 172 million rubles level. Yet, after correction and
adjustments introduced, total investments comprised 1 billion 254
million rubles, with 1 billion 26 million rubles allocated to
infrastructure and 227 million rubles to rolling stock,' he told the
news conference in Yerevan.
`By the year 2010, the company will completely meet concessionary
agreement -stipulated liabilities,' SCR Director General concluded.
*
The control service of Armenia does not supervise issue of sales slips
in entertainment facilities and restaurants, said Hovhannes Hovsepyan,
the head of control service at the RA presidential administration.
He informed that the state revenue committee has already addressed the problem.
Mr. Hovsepyan also said that shadow employment makes 29% in Armenia.
`There are companies which register elderly or disabled people as
owners in order to avoid tax payments,' he said.
*
HSBC Bank Armenia cjsc was declared Bank of the Year in Armenia for
2009, at The Banker's Bank of The Year Awards in London on 4 December
2009.
The criteria for choosing the winners included banks' financial
performance, innovation, new initiatives and general strategy over the
previous year.
Among the bank's achievements which have been considered by The Banker
were the 16.9 per cent rise in assets in 2008 and the bank's focus on
providing superlative customer service.
Tim Slater, Chief Executive Officer, HSBC Bank Armenia cjsc,
commented: `The bank continued its investments in technology and
infrastructure and introduced internet and telephone banking services
to Armenia. HSBC Bank Armenia now offers a full direct banking
proposition and a choice of branch, ATM, telephone and internet
banking for its customers'.
The world's local bank continues to work on the concept of 'your
branch that never closes' for customers living in Armenia and
elsewhere in the world.
Victoriya Araratyan