Although two-digit economic growth is expected to be registered in Armenia, and officials are making statements on economic recovery, Armenian companies have not issued their securities this year.  In free market systems, the securities market is the key indicator of economic processes.

Director of the Stock Exchange Armen Melikyan made the following comment: “Issuing bonds is an alternative to credits for companies. With the present interest rates it does not pay to issue bonds. We had an interest rate of 11% for corporate bonds and a rate of 13-15 per cent for government bonds. So corporate bonds are uncompetitive as compared with credits and government bonds,” Melikyan said.

K. Duryan, Head of the Investment Department, ArmSwissbank, believes government bonds to be a major obstacle in the corporate bond market. “The government bond yield is decreasing now. If this trend continues and yield remains lower than 10%, I can say corporate bonds will be offered in about six months,” he said. Duryan reported that the yield of 5-year government bonds was down to 13.5% at the latest session against the previous 15%.