Armenia summing up results of 2009

PanARMENIAN.Net - According to Aristomene Varudakis, maintaning the social spending, particularly in education and health, is also important, since social programs of the Armenian Government had helped to mitigate the impact of the crisis on vulnerable stratas and the economy in general.

The official emphasized that reforms in tax administration will help Armenia to ensure tax collection and, consequently, to service country's state debt.

Armenian authorities need determination and strong political will to reform economy and overcome the global crisis, Aristomeneh Varoudakis concluded adding thet measures taken by the government so far are not sufficient.

In 2009, World Bank-bank funded credit programs in Armenia totaled USD 280 million, according to Aristomene Varudakis, representative of WB Office in Yerevan. "Out of USD 550 million envisaged for separate programs, USD 280 million has been formulated," he told journalists Thursday.

At that, he noted that the 2009-12 Strategic Partnership Program envisages creditor means in the amount of $ 550 USD million, of which $ 450 USD will be directed at state investment programs.

With regard to 2010 credit programs, Varudakis said the Bank plans to implement 8 projects with a total cost of USD 160 million. "We expect WB board of directors to approve 8 programs to be ratified by Armenia's National Assembly," he said.

World Bank gives positive assessment to RA government's anti-crisis policy, yet we don't see Armenia's future in construction, but rather in economy diversification, Aristomene Varoudakis said.

"Though, in itself a correct policy line, 2009's policy of construction development did not just justify itself in Armenia," he told the news conference in Yerevan.

In this context, the head of World Bank Yerevan Office noted that donor organizations' short-term credit programs implemented in Armenia were aimed at creation of jobs, social conditions improvement and country's competitiveness increase. He reminded that USD 108 million of Russia's credit were directed towards mitigation of crisis consequences and USD 50 million allocated by WB to assist small and medium business.

Also, part of the means (USD 10 million) were allocated as state guarantees to construction works in Gyumri, "which has a major social importance; many people who lost homes in the earthquake will be provided with apartments."

World Bank forecasts 1.5 per cent economic growth in 2010 in Armenia, World Bank Armenia Country Manager Aristomene Varoudakis told a press conference in Yerevan.

"The recovery of Armenian economy will be gradual. The economy growth was mostly secured by construction industry," he said, adding that there are still some unfinished constructions and unsold apartments in new buildings, in particular, on North Avenue.

According to Mr. Varoudakis, inflation rate in 2010 is expected to be moderate, within the target of the Central Bank of Armenia.

However, Armenia's state budget projects 1.2 per cent economic growth and 4 ± 1.5 per cent inflation.

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16 families of servicemen have recived new appartments in Armavir region of Armenia. "We are happy that, even under crisis conditions we can provide housing for our soldiers,'' Prime Minister of Armenia Tigran Sargsyan told a government meeting in Sardarapat Memorial Museum in the Armavir region.

As Prime Minister mentioned, to restore the irrigation system of the region international experts have been invited and large investments attracted. The new rehabilitated 84-kilometer-long irrigation system of the region will help within two years to form a qualitatively new environment for agriculture," he said. The rehabilitation works involved over 1000 people, with about AMD 120 000 wages.

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Two agreements were signed December 18in frames of "Millennium Challenge Account - Armenia" Fund's program in Yerevan: "Restoration of Ararat valley's drainage system" of USD 7.6 million (contractor - Sahakshin CJSC) and "Restoration of third degree utility" of USD 2,3 million (contractor is a joint consortium Yerevanshin Ltd and Kamurjshin CJSC.

As RA Vice-Premier, Minister of Territorial Administration Armen Gevorgyan said, signing of these agreements is of great importance, since large investments will be made to enhance welfare of rural areas.

According to Ara Hovsepyan, Chief Executive Officer of "MCA-Armenia", in 2009 the Fund received and placed approximately USD 52 million and in 2010 it is planned to allocate USD 70 million, while total programs of the fund at the end of 2011 will reach USD 180 million.

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CBA chairman Arthur Javadyan will depart to Frankfurt on December 21 to meet with KfW vice-presidents and program coordinators. Allocation of extra 27 million euro to Armenia will be in focus of talks.

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Ceremonial event dated to "Barbera-Lupicinio-Z.Megrhryan investment advocacy" Spanish-Armenian consulting company opening. The event was attended by RA Deputy Economy Minister Ara Petrosyan, "Lupicinio Eversheds" international juridical company founder Lupicinio Rodriguez, Honorary consul of Armenia in Spain Luis Barbera Zapatero, Zinavor Megrhryan and other high-ranking officials.

As Economy Ministry spokesman Gayane Vardanyan told PanARMENIAN.Net reporter, creation of a joint consulting company is a result of Armenian-Spanish business forum held in September 2009. "Even then, Spanish entrepreneurs took interest in some of our business projects. Soon an opportunity occurred for their implementation," she said.

According to her, company activities are aimed at activation of bilateral economic relations, with the company acting as a mediator between Armenian and Spanish business communities and providing consulting services for investment projects' implementation.

At present, Spanish entrepreneurs are interested in such projects as Northern -Southern highway construction, waste processing programs and tourism development.

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Armenian Economy Minister Nerses Yeritsyan will attend International Nanotechnology Forum in Dubna on December 17 and 18. The event will bring together official and scientists from 8 countries.

A number of documents on cooperation will be signed.