Promising rates for reducing economic downfall and Armenia's participation in CIS leaders' session

PanARMENIAN.Net - Inflation rate in January-October was 3%, compared to the same period of last year. Whereas only in October, this rate comprised 0.5% compared to September 2009.

According to RA National Statistic Service data, the number of unemployed reached 83000 in January-October in Armenia, increasing by 11,4% against last year's index.

Average monthly salary totaled AMD 98618 in January-October 2009, increasing by 11,5% compared with 2008 data. At the same time, average salary in government-financed organizations totaled AMD 81529, increasing by 16,1%; in private enterprises the figure reached AMD 123160, increasing by 8,1% against last year's index.

* The data was published in "Analysis of generalized indicators for monitoring of large taxpayers in September 2009" by the Committee on Public Revenue of the government of Armenia. Monitoring was conducted among 325 largest taxpayers Armenia. According to the analysis 325 largest taxpayers in September 2009 ensured 48.5 per cent of budget revenue through taxes. In particular, ArmRosGazprom, K-Telecom, Hrazdan energy company and Grand Tobacco Armenian-Canadian joint venture paid 3.8 billion AMD less in September compared to September 2008 in the state budget of Armenia.

* The RA committee on state income has published the analysis of monitoring of 325 major taxpayers in Armenia. According to the report, the companies' sales proceeds totaled AMD 162.1 billion, decreasing 11.3% against September 2008 index.

On November 19, RA government passed a resolution to grant USD 500 million budget guarantee to Norashen company in order to complete construction works started. Mortgage agreement will be signed to guarantee the return of means granted.

Commenting on the resolution, RA Prime Minister Tigran Sargsyan noted that similar budget guarantees are provided to construction companies on stringent conditions (with 50% of construction works terminated).

Beside, the Premier noted that Armenian government has already granted a total of AMD 3.5 billion budget guarantee as well as around AMD 12 billion mortgage crediting to create additional activity on real estate market.

According to Prime Minister, budget guarantees provided are monitored by the public; full reports are available at RA government's official website. The crisis uncovered Armenian economy's weak points, specifically the low diversification level, RA Prime Minister said when addressing the parliament on Wednesday.

* Tigran Sargsyan also mentioned the low competition level, uneven distribution of tax burden and inefficiency of financing healthcare projects.

"Next year, Armenian economy will start recovering. After 2009's GDP slump of 18.3%, an upsurge of 1.2% is expected in 2010," RA Finance Minister Tigran Davtyan stated at parliament hearings on budget issues.

According to the Minister, Armenia was the last to face world crisis and has best chances of recovery. "As a whole, macroeconomic stability is preserved in Armenia. Major part of Russian credits is directed into RA economy sector to support small & medium businesses," Tigran Davtyan noted.

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"Armenia's state budget for 2010 is not encouraging. In 2010 the situation will worsen for Armenian citizens, since private transfers from abroad reduced, price growth is observed, while the RA government does not envisage any increase in wages," Ara Nranyan deputy of the ARF Dashnaktsutyun faction said on November 20, during a briefing at the National Assembly of Armenia.

According Ara Nranyan, if the Central Bank of Armenia is not able to keep the dollar rate lower 420 AMD margin, then the foreign debt will rise to 50 per cent of GDP and our country will be unable to service it.

According to Ara Nranyan, Armenian government used very inefficiently the credits and "Armenia may find itself among bankrupt countries."

However, MP also said that ARF has not yet determined, to vote for or against this budget.

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"Parliamentary discussions over 2010 State Budget proved the document was unrealistic, since there are a lot of problems in terms of both incomes and expenses," Heritage faction MP Armen Martirosyan told a November 20 National Assembly briefing.

While drafting the State Budget, Government did not take into consideration the significant price growth registered in the country, hence the document does not envisage salary increase. "Neither will there be any progress in poverty eradication sphere, so Heritage finds the document unacceptable," MP stressed

"Armenian Premier's recent statement on importance of anti- oligopoly struggle is commendable, yet of purely declarative character, as practice proves," Heritage parliamentary faction representative Armen Martirosyan said at November 20 parliamentary briefing.

According to Armen Martirosyan, currently RA government doesn't want to struggle against oligopolistic-monopolistic system, nor has enough will to undertake it.

In her turn, Heritage parliamentary faction secretary Larisa Alaverdyan characterized Armenia as the only country where shadow policy is not practiced, as "everyone has idea both of major businessmen's and oligarchs' state of affairs and of non-taxable real business."

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The Armenia's draft budget 2010 ensures consistency of all previously envisaged programs,» Heghineh Bisharyan , secretary of Orinats Yerkir national Assembly faction and and Hovhannes Margaryan, member of the faction said November 20 during a briefing at the National Assembly.

According to the MP, "Orinats erkir" attaches a great importance to continuation of construction works in the disaster zone, paying back to population the debts of soviet bank deposits, to the start of cumulative funds operation, which will allow the retired to receive double pensions.

"Orinats Erkir" belives, that RA goverment's statement about the next year GDP growth (1.2 per cent ) is valid. As Hovhannes Margaryan suggests, "next year, the construction of the north-west highway, the Iran-Armenia railway and new nuclear power station will bring vast resources in the economy of Armenia".

"Control chambers in different states are different in essence by virtue of being adjusted to the given country's conditions," Head of Poland's Supreme Control Chamber Yatsek Yazersaky told a joint news conference organized in RA National Assembly with Head of Armenian

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RA Prime Minister Tigran Sargsyan is in Italy to attend a FAO summit.

Mr. Sargsyan delivered Tuesday a statement, which reads in part: "Mr. Chairman, Dear Colleagues, Ladies and Gentlemen. Full member of the FAO since 1993, the Republic of Armenia has been involved in the activities of the Organization for about twenty years now. The past years of cooperation were those of effective work leading to numerous achievements. We are stating with pride that our country's example was cited among four other success stories in the FAO's "Ways of Success" report as a good experience of setting tasks and addressing them with perseverance. Indeed, this does not mean that all the problems are solved, so we should work with renewed effort to build on these achievements and continue with progress in the sphere of agriculture.

It is common knowledge that food production is at high risk all over the world including Armenia. The current financial and economic crisis adds its negative impact on the issue of food demand especially in developing countries. This is why we appreciate the holding of this summit, as well as the efforts made by the States and international organizations. Those present will still have the opportunity of referring to the Declaration of this summit on food security. I feel that we are going to have quite interesting and substantial debates. My position is strict and clear-cut enough. The Republic of Armenia endorses the Summit Declaration. It meets our government's vision and the underlying principles are acceptable to us.

Dear Director General, We highly appreciate the decision to hold the 36th Session of FAO's European Commission on Agriculture and the 27th European Regional Conference of FAO in Yerevan from May 10-14, 2010. I hope that the decisions adopted in Yerevan will contribute to the considerable improvement of the level of food security. We are looking forward to seeing you again in Yerevan.

Allow me, on behalf of the Government of the Republic of Armenia, to extend my deepest gratitude to the Food and Agriculture Organization and personally to Director-General Dr. Jacques Diouf, to all donor community members and all countries with good will, for their collaborative efforts to find solutions to the world's rising problems. I am confident that with collaborative efforts of all countries we will be able to meet all challenges of food insecurity and gradually eradicate hunger and poverty in the world."

Tigran Sargsyan expressed Armenia's appreciation of the ongoing RA-FAO collaboration and the programs implemented in our country. The head of government reiterated Armenia's readiness to host the 36th Session of FAO's European Commission on Agriculture and the 27th European Regional Conference of FAO in Yerevan from May 10-14, 2010.

As a result of recent research conducted on consumer market, State Committee for the Protection of Economic Competition has observed tendencies of increasing prices on products of social importance, particularly on petroleum, diesel fuel, vegetable oil, egg and sugar.

"We are certainly concerned by increased prices on consumer market. It is planned to start administrative proceedings against those markets," chairman of Committee David Harutyunyan said.

To find out and prevent unreasonable increase of prices on above-mentioned products, especially ahead of New Year holidays, Committee recommended entrepreneurs to submit relevant justifications between November 20 and December 31, 2009.