Armeian News

NEW 100K DRAM PUT IN CIRCULATION
Asbarez
Aug 24, 2009

YEREVAN (RFE/RL)-The Armenian Central Bank on Monday introduced a
100,000 dram currency note.

A representative of Armenia's Central Bank (CB) has ruled out that
the introduction of a 100K Dram banknote on Monday increases inflation
risks or forestalls an imminent devaluation of the national currency
in Armenia.

CB Board member Vakhtang Abrahamian told RFE/RL that the regulator's
specialists had studied the issue and concluded that the introduction
of this large banknote, equivalent to roughly $265, does not threaten
any major devaluation of the national currency.

Until now, a 50K Dram bill was Armenia's banknote with the highest
face value.

"This banknote, according to our estimations, will take only 3 percent
in cash circulation on the market, which cannot have any significant
impact on the economy in terms of the value of the national currency
or any inflation risks," said Abrahamian.

Abrahamian said CB experts had studied the experience of a number of
countries, such as Lithuania, where the highest nominal value of a
banknote is equivalent to 1,000 Euros (approx. $1,433).

"This experience shows that on the contrary it facilitates large
transactions and avoids situations where large transactions are
carried out with the use of foreign currencies," he added.

Former CB chairman Bagrat Asatrian also ruled out that the introduction
of 100K Dram banknotes would have any impact on the value of the
Armenian currency. He said it would only alter the structure of the
money supply rather than expand it.

"I think there is also something positive here, and eventually large
banknotes are also a means to combat dollarization," said Asatrian.

RFE/RL Report

Armenian Chemical Plant Workers Walk Out Over Back Wages
24.08.2009
Naira Bulghadarian

Workers at a chemical plant in Armenia's third largest city on Monday
refused to enter the work premises as they demanded that the
company's administration pay their back wages first.

The enterprise based in Vanadzor, some 120 kilometers to the north of
Armenian capital Yerevan, has been hit hard by the global economic
crisis and, in particular, a collapse of international prices of
calcium carbide, its main product. It stopped manufacturing the
chemical compound used in steelmaking and sent much of its 830-strong
workforce on indefinite leave as a result.

The remaining workers say they have not received their wages since
March, and the company's total wage arrears at the moment are
estimated to exceed $265,000.

Prime Minister Tigran Sarkisian said in June that the Armenian
government would not provide direct financial assistance requested by
the country's second-largest chemical enterprise, but added that
instead it was ready to help it sell its production to domestic
consumers.

Meanwhile, the management of Vanadzor-Khimprom, which has largely
stood idle since last fall, hoped that the government would channel a
part of a $500 million loan obtained from Russia into its
rehabilitation.

`We want [President] Serzh Sarkisian's promises that we will receive
our wages every month to be kept. But today we have not received our
wages for six months,' said one angry worker at Khimprom.

`The prime minister first promised that we would be paid from the
Russian $500 million [stabilization loan],' another worker continued.
`...But after receiving that loan, he came here and said he wouldn't
give it.'

The workers say they were last paid on Friday - their wages for
March. They believe this was done by the administration to avert
their possible strike.

`Perhaps they learned on Friday that we wanted to organize such a
protest and gave us our wages for March,' said one worker.

Workers also complained about job cuts that left many of their
colleagues jobless and some accused the company administration of
continuing plunder at the plant.

RFE/RL could not reach Vanadzor-Khimprom director Aleksandr Snegiryov
for comment. He as well as his assistant Artur Stepanian were said to
be out of town. The latter reportedly traveled to Yerevan to
negotiate a bank loan.

Before that, Stepanian had urged the workers to be patient: `Like
yourselves, I have not received my wages for five months.'

Late last year, Vanadzor-Khimprom stopped the production of carbide
following a dramatic fall in prices on the international market. The
plant's administration said they might resume the export of carbide
already this fall depending on the outcome of ongoing negotiations
with an Italian company.

Also, the first batch of potassium fertilizers produced at the plant
has now been delivered to agricultural farms in Armenia. The plant is
currently 95 percent ready for producing these fertilizers.

In the end, Khimprom's workers decided to postpone their strike for a
week. But many told RFE/RL they doubted problems would be solved
during this period.

SUPREME PATRIARCH MARKED HIS 58TH ANNIVERSARY
Panorama.am
13:22 22/08/2009

The Supreme Patriarch of All Armenians Karekin II celebrated his
58th anniversary. On this occasion the press service of Mother See
of Holy Etchmiadzin received congratulatory messages from state,
political and public figures, as well as foreign Ambassadors.

On this occasion Serzh Sargsyan has also sent congratulatory message
to the Patriarch.

National Assembly PR department reports that the NA Chairman Hovik
Abrahamyan visited the Patriarch to congratulate him and awarded NA
Honor Medal.

It is said that PM Tigran Sargsyan, other Governmental members and
clergymen visited Patriarch to congratulate him.

HSBC BANK ARMENIA INITIATES COLLECTION OF FUNDS FOR

REPAIR OF CILICIA SAILING BOAT
ArmInfo
2009-08-24 18:42:00

ArmInfo. HSBC Bank Armenia has initiated collection of funds under
slogan "Let's Save Cilicia Sailing Boat", says HSBC Bank Armenia CEO
Tim Salter. He hopes the fellows and the clients of HSBC Bank Armenia
will make their contribution to repairing the boat. He mentioned that
Cilicia Sailing Boat had been in open air for several years and now
needs repair. Cilicia Boat is an important component of the Armenian
history, he says highlighting that contributions for saving the boat
can be made at any of the 7 branches of HSBC Bank Armenia.

For his part, Hayas Naval Research Club President Karen Balayan said
that that Cilicia Sailing Boat is part of the Armenian history "we
must remember and preserve."

In 2004 Hayas Naval Research Club built Cilicia Sailing Boat within 15
years basing on restored drafts and descriptions of the 13th century
trading boats of Armenian merchants of the Armenian Kingdom of Cilicia
(Middle Age). Cilicia set sail on its historic voyage on July 14,
2004 from Poti, Georgia.
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