Top ten economic events in Armenia in 2007
07.01.2008,
18:08
Top ten economic events in Armenia in 2007.
1. In January 2007 the Law “About Supervisory Chamber” took effect. Under the Law, the Chamber is an independent supervisory body that exercises external state control over the use of budgetary funds and public and communal property. Before, the Supervisory Chamber was functioning within the country’s parliament.
Under the Law, the Chamber supervises state budget expenditures, including subsidies and submission of conclusions on state budget and privatization programs, annual reports of the Central Bank, management and servicing of the national debt.
2. The signing of an agreement between the Government of Armenia and “ALROSA” diamond extracting company on cooperation in diamond cutting field. Under the agreement Russian raw diamonds are to be supplied to Armenia for processing and re-export. “ALROSA” made an inspection and picked up four enterprises – “Dimotech” Closed Joint Stock Company, “Arevakn”, DCA and “Yukos” – for cutting of the raw diamonds for over $1mln supplied to Armenia at the end of December.
3. Armenia’s “AKBA-Credit Agricole Bank” received its first $12mln syndicated loan from EBRD and Citygroup banking group for three years. Later the bank received the second syndicated loan for $20mln under the agreement signed with EBRD and the international consortium of BZ BANK German banking group, Developing Worlds Markets American investment foundation and Cordiant Capital Canadian investment foundation. In the year 2007 Armeconombank also received a syndicated loan for $15mln from EBRD and a number of world major banks.
4. The Vedanta Resources Company reached an agreement on sale of 84.2% of the stock of Sterlite Gold Ltd. Canadian Company (with Ararat Gold Recovery Company (AGRC) being its main asset) to Georgian “Marneuly Kvatcite” that is a daughter company of “Industrial Investors” Russian group. The transaction cost has not been announced, yet, according to the preliminary information, it is $86mln ($0.3845 per share), including payoff of $25mln debt of Sterlite Gold.
5. The biggest mobile operator on the territory of Russia and the Commonwealth of Independent States (CIS) “Mobile Telesystems” (MTS) open joint stock company purchased 80% of the authorized stock of International Cell Holding Ltd. that is 100% indirect owner of Armenia’s leading mobile communication operator K-Telecom (VivaCell trademark). The option agreement on sale-purchase of the remaining 20% of K-Telecom is to take effect the earliest in July 2010 and is to be in effect until 2012.
6. The Armenian Stock Exchange (Armex) has been reorganized to an open joint stock company and sold to OMX Scandinavian Stock Exchange. Under the agreement signed between the Government of Armenia and the OMX, the latter became 100% owner of Armex and the Central Depository. The shares of Armex and the Central Depository were expected to be handed over to the OMX on January 3 2008. Apart from the agreement on purchase of the shares, the Government of Armenia and the OMX also signed an agreement on joint efforts to ensure long-term development of Armenia’s capital market. According to the experts, OMX’s coming to the Armenian market will promote development of securities’ market in the country and will provide broader opportunities to Armenian enterprises to attract domestic and foreign investments.
7. The Russian Bank VTB and the Armenian Copper Programme (ACP) company signed an agreement on cooperation. Under the agreement, the sides are to jointly implement a project on development of Teghut copper and molybdenum field and on construction of a mining factory on the territory of Armenia with total cost of $300mln. The Bank VTB is to organize the project financing for “Teghut” closed joint stock company. Under the agreement, the Russian Bank VTB is to provide a $257mln loan for 12 years for development of the Teghut cooper and molybdenum field in Armenia.
8. The first section of Iran-Armenia gas pipeline was commissioned in 2007. This means that Iranian gas started coming to Armenia.
9. During 2007 four companies placed their corporate bonds on the market – “Shen Concern” closed joint stock company, “Armenian Copper Programme” (ACP), “Valletta” Co. Ltd. And “ArmRosGasprom” closed joint stock company. The total volume of the issues was 2.5bln Drams.
10. Russian “Vimpelkom” company became the 100%owner of the shares of “ArmenTel” Telecommunication Company. --0--
Under the Law, the Chamber supervises state budget expenditures, including subsidies and submission of conclusions on state budget and privatization programs, annual reports of the Central Bank, management and servicing of the national debt.
2. The signing of an agreement between the Government of Armenia and “ALROSA” diamond extracting company on cooperation in diamond cutting field. Under the agreement Russian raw diamonds are to be supplied to Armenia for processing and re-export. “ALROSA” made an inspection and picked up four enterprises – “Dimotech” Closed Joint Stock Company, “Arevakn”, DCA and “Yukos” – for cutting of the raw diamonds for over $1mln supplied to Armenia at the end of December.
3. Armenia’s “AKBA-Credit Agricole Bank” received its first $12mln syndicated loan from EBRD and Citygroup banking group for three years. Later the bank received the second syndicated loan for $20mln under the agreement signed with EBRD and the international consortium of BZ BANK German banking group, Developing Worlds Markets American investment foundation and Cordiant Capital Canadian investment foundation. In the year 2007 Armeconombank also received a syndicated loan for $15mln from EBRD and a number of world major banks.
4. The Vedanta Resources Company reached an agreement on sale of 84.2% of the stock of Sterlite Gold Ltd. Canadian Company (with Ararat Gold Recovery Company (AGRC) being its main asset) to Georgian “Marneuly Kvatcite” that is a daughter company of “Industrial Investors” Russian group. The transaction cost has not been announced, yet, according to the preliminary information, it is $86mln ($0.3845 per share), including payoff of $25mln debt of Sterlite Gold.
5. The biggest mobile operator on the territory of Russia and the Commonwealth of Independent States (CIS) “Mobile Telesystems” (MTS) open joint stock company purchased 80% of the authorized stock of International Cell Holding Ltd. that is 100% indirect owner of Armenia’s leading mobile communication operator K-Telecom (VivaCell trademark). The option agreement on sale-purchase of the remaining 20% of K-Telecom is to take effect the earliest in July 2010 and is to be in effect until 2012.
6. The Armenian Stock Exchange (Armex) has been reorganized to an open joint stock company and sold to OMX Scandinavian Stock Exchange. Under the agreement signed between the Government of Armenia and the OMX, the latter became 100% owner of Armex and the Central Depository. The shares of Armex and the Central Depository were expected to be handed over to the OMX on January 3 2008. Apart from the agreement on purchase of the shares, the Government of Armenia and the OMX also signed an agreement on joint efforts to ensure long-term development of Armenia’s capital market. According to the experts, OMX’s coming to the Armenian market will promote development of securities’ market in the country and will provide broader opportunities to Armenian enterprises to attract domestic and foreign investments.
7. The Russian Bank VTB and the Armenian Copper Programme (ACP) company signed an agreement on cooperation. Under the agreement, the sides are to jointly implement a project on development of Teghut copper and molybdenum field and on construction of a mining factory on the territory of Armenia with total cost of $300mln. The Bank VTB is to organize the project financing for “Teghut” closed joint stock company. Under the agreement, the Russian Bank VTB is to provide a $257mln loan for 12 years for development of the Teghut cooper and molybdenum field in Armenia.
8. The first section of Iran-Armenia gas pipeline was commissioned in 2007. This means that Iranian gas started coming to Armenia.
9. During 2007 four companies placed their corporate bonds on the market – “Shen Concern” closed joint stock company, “Armenian Copper Programme” (ACP), “Valletta” Co. Ltd. And “ArmRosGasprom” closed joint stock company. The total volume of the issues was 2.5bln Drams.
10. Russian “Vimpelkom” company became the 100%owner of the shares of “ArmenTel” Telecommunication Company. --0--
