Economists say Armenia is unlikely to have another ‘Black Tuesday’ when [on March 3, 2009] its currency collapsed and panic buying began in Yerevan and elsewhere in the country. Yet, they say, the dram has been dethroned – and “that’s already the fact.”

The government of Armenia expects an economic growth of 1.2 percent this year, which some experts do not trust given the worst economic performance, a 14.4 percent fall, showed by Armenia among former Soviet countries in 2009.

The price of water for households and corporate consumers in capital Yerevan and nearby areas may be increased by more than 14 percent in July after a utility company has requested such a tariff change from the public services regulatory body.

The only motorway gateway on the Russo-Georgian border, Upper Lars, resumed work on March 1, after staying closed for more than three years. The border crossing was closed in 2006 by the decision of the Russian side that cited repairs as the formal reason. In September, with $2.5 million financial assistance from the United States, Georgia completed the construction of a modern border point Kazbegi.

Drivers of vehicles using natural gas (butane), including a majority of taxis and minibuses, fear that the rise in the tariff announced last week and effective April 1 will have a negative impact on their livelihood.

Prime Minister Tigran Sargsyan called a consultative meeting to discuss the draft RA 2010-2020 strategy for sustainable development of agriculture and its implementation action plan. In attendance were experts and members of the Public Council.

A free economic zone regime expected to come into effect in the territory adjacent to Yerevan’s international airport is expected to spur exports of local agricultural products and have positive effects on the general economics of the area in Zvartnots.

The National Assembly of Armenia adopted the draft on Making Amendments and Addenda (providing communities with a privilege to define eight types of local taxes) to the RA Law on Taxes on Monday. The amendments, which defined eight types of local taxes created controversy two weeks ago, and now the government redrafted the ‘taxing packages’ and, according to the new draft, only two types of taxes will be added.

The government plans a new measure that it says will help drivers save money on emergency costs and stimulate growth in the banking sphere. Under the bill on compulsory car insurance, which is on the agenda of the National Assembly’s spring session, starting next year the owners of 400,000 or so vehicles in Armenia will be required to get insurance on their transport. But many car owners, especially private taxi drivers, appear unimpressed by the planned legislation as they expect it to create an additional financial burden for them.

The discussion of the tax package that created controversy in parliament last week has been delayed by two weeks. The complex initiative consists of proposed amendments to laws on “Taxes”, “Budget System” and “Local Government” which the government proposes will result in better tax administration.