Delegations from Iran, Georgia and Italy visited Armenia this week.

PanARMENIAN.Net - * Armenian Minister of Transport and Communications Gurgen Sargsyan received an Italian delegation led by Italian Deputy Minister of Economic Development Paolo Romani on January 26, 2010.

During the meeting, attended also by the Armenian Minister of Economy Nerses Yeritsyan, ways to intensify Armenia’s economic development, digitization of broadcasting, Internet access, railway, road construction were considered. Mr. Romani voiced hope that Italian companies will apply for the North-South highway construction tender. He did not rule out that Italy might join railway construction project in Armenia as well.

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The 8th meeting of the Armenian-Georgian intergovernmental commission on economic cooperation was held in Yerevan with participation of the heads of Armenian and Georgian governments.

The sides focused on implementation of the protocols signed during the commission’s 7th meeting held in December 2009, the development of a legal framework between the countries, delimitation of the Armenia-Georgia border, prospects of trade and economic development as well as regional cooperation in tourism, transport, agriculture, energy, culture, health and education. Javakhk–Batumi road construction was also discussed.

The date and venue of the next meeting of the intergovernmental commission was also discussed.

“I’m glad to inform that we reached mutual understanding on all issues included in the agenda of 8th intergovernmental sitting on Armenia-Georgia economic collaboration, Armenian Prime Minister Tigran Sargsyan said.

As he stated during a joint news conference with Georgian Premier Nika Gilauri, economy, culture, energy and social issues were included in sitting agenda. “Both parties instructed intergovernmental workgroups to register agreements reached in minutes of today’s sitting,” he said.

Georgian PM, for his part, noted that an effective discussion was held on broad spectrum of issues, expressing hope for the next discussion to be as constructive. “The 9th sitting will take place in Georgia and I invite my Armenian counterpart to visit our country,” Nika Gilauri said.

“Opening of borders between two states will not affect the transit prices of Armenian products, but diversification of roads and communication will be to the benefit of all parties.”

He also informed that a bilateral agreement on 400- kilowatt electricity transmission line construction was signed.

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Affordable housing for young families program was approved at the Jan. 29 meeting of the Armenian government . "With this decision, the government launched a large-scale program to support young families, which is a priority in pre-election program of the president," Arsen Karamyan, Deputy Minister of Sport and Youth Affairs told a news conference. According to him, provision of young families with affordable housing will be Government’s priority for the coming years, while by 2012 issue of affordable credits for the purchase of cars will be solved.

He also reminded that benefit increases resulted in the birthrate growth in the country, where in 2009 3000 more children was born in comparison to 2008," he said.

Deputy Finance Minister Vartan Aramyan said for his part that a new mechanism will be offered to alleviate the loan burden for young families. According to him, instead of operating 14-15 per cent per annum loans young families will be able receive loans at 8-10 per cent per annum for 10 years.

The gross family income should be around AMD 300-380 thousand, which include not only revenues of the young members of families, but also relatives, thereby lending conditions will not seem fantastic, and the monthly payments will amount to AMD 130-160 thousand.

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RA State Revenue Committee published the list of 300 major Armenian taxpayers. ArmRosgazprom topped the list, having played AMD 18 billion 414 million worth of taxes in 2009, exceeding 2008 index by 3%.

ArmRosGazprom is followed by Alex-Grig, which contributed AMD 16 billion 120 million to the state budget. In 2008, the company paid AMD 12 billion 535 million.

Last year’s leader, K-Telecom (Viva-Cell-МТС) came third in the list, with AMD 15 billion 916 million paid to the state budget.

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In January-December 2009, the average nominal salary in budget-funded organizations made AMD 101 895, having increased by 9.8% compared to the same period of 2008, according to the official report of Armenian National Statistic Service.

In comparison with November 2009, the average monthly salary fixed a 27.5% growth.

The average monthly salary in budget-funded and privately held organizations made AMD 84 845 and AMD 126 407 respectively. In the meantime, salaries in privately held organizations totaled AMD 126 407, having increased by 5.3 % compared to the same period of 2008.

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Time of intensified banking activity is approaching in Armenia, Ararat Ghukasyan , chairman of Armenian Union of Banks said. "Indefinite situation of 2009 has been overcame, and in 2010 we will witness these changes," he said.

According to him the banking system of Armenia will face the following challenges in 2010: quality service, lending volumes.

Over the past year Armenian banks have significantly increased the amount of capital, and today the Armenian banking system does not experience problems of capitalization. "The level of capitalization of Armenian banks is much higher the level required by international standards," he said.

Refinancing interest rate in Armenia is an indicator of the proper liquidity level, Mr. Ghukasyan, told a PanARMENIAN.Net reporter. "And this step, as the Central Bank has already stated, was aimed at reducing inflationary pressures and, of course, indicates to the proper liquidity level. In my opinion, rise in refinancing interest rate reflects the current situation,” he said.

As for the CBA policy’s consistency, according to Ararat Ghukasyan, "the Central Bank is faithful to its policy: it is always reviewing the interest rate: increasing or reducing it".

The CBA Board at its meeting on January 21 2010 decided to raise the refinancing interest rate to 0.5 percentage points, setting it at 5.5 per cent.

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Armenia hosted an international seminar on January 25-29. The event organized by Toronto Center, World Bank and Central Bank of Armenia brought together representatives of central and national banks as well as financial control structures from Czech Republic, Russia, Lithuania, Belarus, Moldova, Ukraine, Turkey, Georgia, Tajikistan.

The seminar focused on decision-making abilities in crisis situation. Held for the first time in CIS, itwas aimed at increasing seminar participants’ preparedness for crisis resistance.

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In 2010, Ameriabank has planned up to 25% asset growth, 30% loan portfolio volume and 10% capital increase.

“Capital increase will be conditioned by current income index, forecasted to comprise AMD 2 billion,” Ameriabank director general Artak Hanesyan told a news conference in Yerevan.

At the same time, he added that in 2010, the bank will keep the level of non performing assets in total loan portfolio at 1% -2%. As of December 31, 2009 NPL comprised 0.17 % of the total loan portfolio.

Ameriabank subsidiary chain expansion is scheduled in 2010. New subsidiaries will be opened in Dilijan, Vanadzor or Gyumri, as well as in the centre of Yerevan. “The subsidiary will be servicing physical persons. An increase in physical person’s number among bank’s clients was observed in 2009, and we expect similar growth rate this year,” Mr. Hanesyan noted.

* On January 27, 2010, Armswissbank and the European Bank for Reconstruction and Development (EBRD) signed Wednesday $ 8 million worth credit agreements aimed at crediting small and medium business ($ 5 million) and funding the trade sector ($ 3 million).