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[MJ]

KOCHARIAN, KUCHMA DISCUSSED FERRYBOAT LINE ISSUES

KIEV, MARCH 2, ARMENPRESS: Visiting Armenian president Robert Kocharian and
Ukraine's president Leonid Kuchma discussed on Thursday issues on how to
speed up with putting into action a railway ferryboat line which will connect
the Georgian port of Poti with Ilichevsk, another port on the Russian coast
of the Black sea, which is supposed to boost Armenia's trade contacts with
Russia, Ukraine and European countries.
Kocharian was quoted as saying that "it will be the shortest and cheapest
route for Armenian-Ukrainian trade."
Kuchma said both Armenia and Ukraine are interested in transportation of
Ukrainian goods to Iran through the territory of Armenia and vice versa, as
well as in transportation of Iranian and Armenian goods to Europe through
Ukraine.
Kocharian called on Ukraine to participate in the construction of
Iran-Armenia gas pipeline, a project, supported by the European Union.
The Armenian president met today with the armenian communoty of Odessa. The
community (25000) has repaired the Armenian church. There is also Armenian
school in Odessa. The foundation of a National library is also planned. In
general there are several Armenian organizatoins, six Armenian churches
operating in Ukraine.
It should also be mentioned that yesterday the Mayor of Kiev presented a
certificate of an Honorable Guest and the symbol of Kiev to Kocharian.
The delegation led by the Armenian president tonight will leave Ukraine.

[Berj]

SNARK

CRITICAL DEFICIT OF PROGRAMMERS IS FELT IN ARMENIA

YEREVAN, MARCH 14. A critical deficit of qualified programmers is felt in Armenia. The first deputy minister of Armenia's Industry and Trade Ashot Shahnazarian informed the journalists.

As to him, presently there about 2500 programmers in the republic, and about 50 companies are being specialized in the sphere of information technologies, and these companies wholly implement the orders of large international companies. About 10 companies are the
most active in that market. They are ready to increase the number of employees by five times, but they faced a serious problem of shortage of qualified personnel, Shahnazarian mentioned. The last few years, a big part of programmers left the country for searching jobs.
Shahnazarian thinks that now the situation in the country has been changed to better and the programmers of Armenia earn not little money, in average $700 a month, and maximal salary is at $1500 a month.

As to the deputy minister of Industry and Trade Armen Grigorian, it is planned to invest about $30 mln for the development of information technologies in Armenia in 2001. The American Epygi Labs company will invest $20 mln from that sum for the creation of technical park and retraining of programmers. The World Bank is ready to credit about $5 mln for these purposes. The Eurasia Fund is ready to allot from $2 to $3 mln for training of Armenian specialists and some more millions dollars will be invested in the head enterprise of "Transistor" industrial union.

As to the economist of the World bank Lev Freinkman, annually in Armenia international organizations order computer programs by the sum at $20 mln.

[MJ]

INTERVIEW-Armenia FinMin sees start of economic recovery

By Hasmik Mkrtchyan


YEREVAN, April 4 (Reuters) - Armenia's economy has started to show signs of
recovery for the first time since eight top officials were killed in a 1999
shooting in parliament, Finance and Economy Minister Vardan Khachatryan said.

Khachatryan told Reuters in an interview late on Tuesday that industrial
output rose 11.4 percent in the first two months of 2001 compared to the same
period last year, while gross domestic product (GDP) climbed 10.9 percent.

"We met and exceeded the targets that we had set out. Now we hope to maintain
these trends," he said, adding that the government was targeting total GDP
growth of six percent for 2001, equal to that seen in 2000.

In October 1999, Armenian Prime Minister Vazgen Sargsyan, parliament speaker
Karen Demirchyan and six other officials were killed when five gunmen, led by
a radical nationalist, burst into parliament and cut them down in a hail of
bullets.

The event caused widespread grief and shock in the tiny, mountainous country
bordering Iran, and plunged the ex-Soviet state into a political and economic
crisis it could ill afford.

Khachatryan said export volumes had increased 28.0 percent in the first two
months of 2001, while imports slipped 9.3 percent in comparison with the same
period in 2000.

"Reducing the volume of imports by developing domestic industry is a top
government task," the minister said.

Armenia's main exports include non-precious metals, diamonds, jewellery,
textiles, electronics and mineral water.

Khachatryan said the country had also created legislation designed to attract
more foreign investors and promote domestic business growth.

Economic experts say Armenia needs to do more to improve its business climate
by untangling rules, speeding up privatisation and taking a stronger stand on
corruption and Soviet-style bureaucracy.

Khachatryan said positive trends could also be seen in the fiscal sphere
where the government had boosted budget revenues.

And he praised the government's work, but said some problems related to
corruption and a "shadow economy" still needed to be resolved.

Khachatryan said Armenia expected to attract more investment and get new
credits from its main creditors -- the International Monetary Fund (IMF) and
the World Bank.

He said the country expected to get $90 million under the IMF's three-year
Poverty Reduction and Growth Facility programme as well as $50 million in
credits from the World Bank.

Armenia, which has a population of around 3.8 million, is one of the poorest
countries in the former Soviet Union with an annual per capita income of
about $600.

[MJ]

FOREIGN INVESTMENT FIGURES UP

The total volume of foreign investments in the Armenian economy increased 29% over 1999. Armenia's Deputy Minister of Industry and Trade Tigran Davtian said this week that a preliminary estimate of $180 million for 2000 had been revised upward to $190 million.
(Source: Snark 4-10)

[MJ]

ARMENIA SETS NEW SCHEDULE FOR ENERGY PRIVATIZATION. The
Armenian government on 24 May set a deadline of late November
2001 for completion of a new international tender to
privatize four state-owned energy distribution networks,
RFE/RL's Yerevan bureau reported on 24 May. A previous
attempt to sell off those networks ended in failure last
month when the last two shortlisted bidders pulled out (see
"RFE/RL Newsline," 23 April 2001). Disbursement of the final
tranche of a new World Bank $50 million Structural Adjustment
Credit is conditional on the successful privatization of the
four networks. LF

[nairakev]

Philippines and Indonesia have a large maritime zones, which Armenia doesn't have. Secondly Indonesia and Philipnes have a very low social security policy (if none at all).

Armenia needs peace and peaceful neighbours. It's islolated by neighbouring Turkey, Azerbaijan, instability in Georgia and by Iran which is not an economic eldorado either. Besides Iran, is isolated itself because of its islamic regime. Most of transportation routes to Armenia go by air, this boost prices and makes armenian products expensive. No competetion with Russian, Georgian or even Turkmen products. Armenia needs peace and transportation routes.

[nairakev]

$30 mln is what as minimum serious western information start-ups raise during their fundraising campaign. And this is the governmental investment of Armenia for the development of information technologies. Redicilous sum!
Someone in boards was talking about Armenia becoming Sillicon Valley. where do you get money for that? Dream dreamer!

[MJ]

ARMENIA IS INTERESTED IN INCREASE IN TURNOVER WITH EUROPE, KOCHARIAN SAYS

Mediamax
4 June 2001

YEREVAN

In his exclusive interview to Mediamax Armenian President Robert Kocharian
expressed today his satisfaction with the dynamics and productivity of
development of political relations between Armenia and European Union.
Visit of Kocharian to the Headquarters of the European Union in Brussels
starts Tuesday. During the visit President will meet with EU, European
Commission and European Parliament top officials.
'We are linked by serious economic interests, too. About 40% of our trade
exchange fall on countries of European Union. The export of Armenia to those
countries makes $107 million. These are serious figures, and we are
interested in their further increase,' Armenian President said. He noted that
the bilateral economic cooperation with EU countries is also being developed,
particularly with Belgium, France, Great Britain, Germany, Italy, Greece.
'There are about 150 enterprises in Armenia partially or wholly based on
European capital. Our businessmen more often find business partners in
different European countries, and we promote the attraction of European
capital into the Armenian economy. Certain work is being done also in
connection with large projects. Issue of Armenia's energy security is of top
priority in our relations,' Robert Kocharian said.
At the same time, the President noted that there was an undeveloped potential
of economic cooperation. 'We are doing everything to develop this sphere of
our relations.'

[nairakev]

MJ, do you know any enterprise in Armenia based on european capital besides Armintel?

[MJ]

Yes, Naira, for example, few software companies. Additionally, the Yerevan Brandy Factory. Yerevan Aluminum Factory (if we consider Russia to be a European country). Hotel Armenia. I am sure there are few more.

[Berj]

Bristol Myers Pharmaceutics, HSBC (both UK), Mannes-Valleks mining (Germany), Hotel Yerevan (Italy).

[nairakev]

Yeah, right!
Brandy factory is bought by French Paul Ricard multinational. Is the Metsamor Nuclear Power Station still 100% public?

[MJ]

I think so. It's hard to imagin a private nuclear power plant in Armenia.

[nairakev]

Or 50% of steak in Korea? :-)

....
I thought one could imagine all in Armenia.



[ June 06, 2001: Message edited by: naira ]

[MJ]

It is even harder to imagine private anything in (North) Korea.

[nairakev]

LOL ... and is it easy to imagine (North) Korea investing smth in Armenia?

[MJ]

They'd better not...

[nairakev]

It's hard to imagin a private nuclear power plant in Armenia.
What about 90% private Armintel? Armenia's telecom is almost completely belongs to a foreign investor. What d'you think about this?

[MJ]

No problem with foreign ownerships. However, Nuclear Plants are national security issues in any country. They cannot be private, I think.

[nairakev]

In US Nuclear Plants are mostly private...

Talking about Armintel's 90% ownership. May be it is important as well for some security reason's to keep the majority of shares governmental. Armintel is the monopolist. And there is no way to compete for other companies. If government had kept its majority it could at least regulate prices and policies in strategic areas of the national telecom market.