On October 6, the National Assembly continued to debate the draft law “On Making Amendments and Addenda ‘On Banks and Bank Activity.’” The MP Grigor Ghongeyan substantiated the positive viewpoint of the NA Standing Committee on Financial-Credit, Budgetary and Economic Affairs about the draft law, that after adopting the law, the mechanisms of government in the banks will be considerably improved, the corporative government will be affirmed, at the same time informing that the committee has proposals, which will be presented till the second reading.

The draft law “On Regulation and Control Development of the RA Finance System” and adjunct to the package of 11 bills, presented Tigran Sargsyan, Chairman of the RA Central Bank.

The NA President Artur Baghdasaryan noted that the financial system is a comprehensive, wise conception, which hasn’t been expressed by this draft law.

To Mr. Baghdasaryan’s question how the Central Bank can implement control on the activity of the private pension fund, which hasn’t created yet, the CB Chairman noted that the creation of that fund isn’t regulated by law, and it’s not excluded that soon such funds will be created, the necessity of controlling of which will rise.

In the explanation the NA President Artur Baghdasaryan noted that in the draft law should be formulated not the acts concerning the financial system, which is a wide conception, but according to the law sub-legislative acts, and the rights and activity of the non-state organization in the whole world was regulated by special laws, which is also necessary to do in our country.

In response to NA President Artur Baghdasaryan’s question, Chairman of the Central Bank explained the fluctuations of the cost by the existing fluctuations of the international market, which reach to Armenia by different means, conditioned by export and import, by the growth and fluctuation of the private transfers, as well as a number of other factors. The Central Bank can’t liquidate those fluctuations, but can soften. He informed that the Central Bank appeared with a new concept, according to which, after the price stabilization, the second important problem should become the financial stability.

The MP Gurgen Arsenyan noted that the national army and the financial system are such two significance factors, which provide vital activity of any country.

The MP Khachatur Sukiasyan also highlighted the draft law in the sense of regulating the market.

The NA President Artur Baghdasaryan, highlighting the draft law, noted that after the constitutional amendments will arise a necessity having a law about the united control of financial system, where all the financial institutions should be included. He expressed concern about the increase of the prices and price fluctuations and for preventing them considered it necessary to take executive and legislative steps, reminding that the rise of the petrol price in the international market forced a number of countries interfering in that process for defending the consumers’ interests. Mr. Baghdasaryan addressed to the main speaker to give information in his final speech, which steps are taken in sense of providing long-term credit and presenting the international test concerning the market of securities.

Tigran Sargsyan, Chairman of the RA Central Bank stated that our country is at the stage of economic reforms, when the necessity of making changes to this sphere has ripened.

Sergo Yeritsyan, Minister of Education and Science, presented for the second reading the draft law “On State Inspectorate of Education” and connected with it the laws “On Making Amendments to the RA Law “On Education” and “On Organizing and Taking Controls in the Republic of Armenia,” noted that after the first reading it was considerably improved.

Hranush Hakobyan, Chairwoman of the NA Standing Committee on Science, Education, Culture and Youth Affairs, informed that the Committee hasn’t expressed a viewpoint about the draft law, because it hasn’t got for debating and presented only her viewpoint. By Mrs. Hakobyan’s estimation, the professional education isn’t possible to inspect: it is licensed, while the law is called “On State Inspectorate of Education, ” it should be the law “On State Inspectorate of General Education.” The problem of the structure of state inspectorates is important, it stays disputable: that construction should be adjunct to the Ministry or in the marzes, too? Mrs. Hakobyan informed that in the viewpoint of the majority of the committee the concentrated structure will work more effective, the corruption risks will reduce, and the school won’t become an apple of discord of the marz structure and state inspectorates.

The NA President Artur Baghdasaryan considered artificial the delay of the issue and giving political nuance to the issue considered inadmissible. By his estimation willfulness of some local bodies and school headmasters is conditioned by imperfection of the legislative sphere, whereas this law will help turning supervision the system. The same concerns also the draft law “On Pre- school Education”, which is in circulation about a year, while during are sold new and new kindergarten buildings. Mr. Baghdasaryan considered inadmissible the delaying of the issue by mutual personal and political accusations.

In their speeches MPs Mekhak Mkhitaryan and Heghine Bisharyan spoke in favour of the idea of creating educational state inspectorates. Ararat Malkhasyan and Arshak Sadoyan suggested not hurrying but going forward by discussing the issue thoroughly and by the way of elaborating the bill.

In his final speech Sergo Yeritsyan, RA Minister of Education and Science, informed that on December 2004, adopted by the government decision, the creation of the territorial constructions is licensed but he has found appropriate the way of legislative regulation of the sphere. He expressed a hope that till the next four-day sittings they will work with the committee and improve the draft law.

The issue of ratification of the “EUROCONTROL” International Convention Relating to Co- operation for the Air Navigation Safety” was also debated.

Bhairon Singh Shekhawat, Vice President of India, being on an official visit in Armenia, gave a speech at the sitting of the National Assembly.

After the speech, Hayk Kotanyan, Head of the NA Staff and Vijay Koumar, Secretary of the Indian Government signed a memorandum of mutual understanding, where it was noted that in the result of the meeting of the NA President Artur Baghdasaryan and Bhairon Singh Shekhawat, Vice President of India, the parliaments of two countries agreed to expand and develop bilateral cooperation through the exchange of visits and information, formation of parliamentary friendship groups, discussions of mutual interest.

The NA sitting completed its activities.