At the NA June 13 sitting debates were enlarged on fluctuation of USD currency and evaluation of AMD, the cause of which was the CB 2005 annual report. It isn’t subject to the parliament’s ratification and is presented as an information.

In the conclusion of the CC on the report, the monitory crediting policy results and the macroeconomic indicators, which were recorded in 2005. According to Control Chamber Chair Gagik Voskanyan, the envisaged digression from 3% of the inflation and 0,2% lessening is due to the agrarian rich harvest and to the price reduction of agrarian products Mr. Voskanyan also recorded that the previous year the CB had a damage of 12 bn AMD, cause of which was the currency reassessment. The CC Chair informed that 17 persons worked in CB with 274.000 AMD average wage. The NA Standing Committee on Financial Credit, Budgetary and Economic Affairs endorsed the report. Gagik Melikyan, member of the committee noted that the price change of oil, wheat and non-ferrous metals in the international market has influenced the main indicator.

Various issues were raised by the deputies from social conditions of people to CB gold reserves’ sale and the topics of hypothec crediting. Viktor Dallakyan, secretary of the faction “Ardarutyun” doesn’t agree with the estimations and indicators on lessening. He presented a number of data related to the increase in prices. Taking into account the economists’ opinions he noted that 26m USD is monthly taken from the people in the result of Dollar-Dram fluctuation, in the condition of the presence of foreign transfers of more than 1 bn. Tatul Manaseryan, another MP of the faction is concerned with the execution of the law on budget 2006. The 420 Drams of accounting exchange for a Dollar in the document doesn’t already comply with the current exchange. Also the price of gas is increased.

Artashes Geghamyan, head of the faction “Azgain Miabanutyun” (National Unity) commented on the report. Taking into account the data of the statistical service, he expressed his dissatisfactions in numbers. He considers that the volume of the import increase would have come to an increase of Dollar and not Dram, whereas 16,3% of AMD increase is recorded. Accoeding to Artashes Geghamyan a great number of society layers are damaged and only “Financial rogues” won, concludes the head of the faction and reminds that they have proposed a parliamentary Ad-hoc committee to be created for to study the key problem. In his completing speech Tigran Sargsyan noted that the policy of floating exchange rate in function since 1993 is the very policy which extremely protects the citizen’s interests. As to the sale of gold reserves the CB Chair noticed that gold for 15m USD is nothing for solving any problem and sums were transferred to Switzerland banks for its protection . The CBAChairman called the people to trust the CB and keep deposits in national currency.

Armen Alaverdyan, Deputy Head of the Taxation Service once again presented the bill on Statement of Physical Entities’ Property and Income, which was rejected by the parliament during the second reading. It is proposed to present a statement for each person in the draft in case there is more than 6m AMD annual income. This index in the US, according to Armen Alaverdyan fluctuates from 7-8.000 USD.  It is 740 USD in Lithuania and no threshold is defined in a number of European countries, all incomes are declared. The law is envisaged to be fulfilled from 2008. Approximately it should refer to 20.000 citizens. According to the law adopted in 2001, the employees of high rank official bodies will continue to declare their property and income. Today 46.000 persons are recorded for declaration.

The RA President proposes the parliament to ratify the Development Credit Agreement signed between the RA and USAIS, through which it is envisaged to allocate 3,5m sums equal to special rights of loan for financial investments in energy restoration system.

In the result of the sitting debates, all the drafts, debated during the previous four-day sittings were adopted i.e. 13 agenda issues and an international agreement. The parliament also adopted the RA President’s proposals on Making Amendments to Criminal Executive and Criminal Procedure Codes.

According to the NA Rules of Procedure the last hour of the sitting was allotted to the MPs’ statements.