YEREVAN. – Armenia will issue foreign currency bonds for the first time this year, Finance Minister Davit Sargsyan announced during Thursday’s Cabinet meeting.
He informed that international organizations no longer consider Armenia to be a low-income country. This means receiving preferential loans from international institutions will reduce gradually and, subsequently, it will stop completely. And this will force Armenia to appear in the international finance markets and to attract funding on its own.
“This means the issuance of Eurobonds should start,” the Finance Minister stated.
In his turn, PM Tigran Sargsyan stated that a political decision is made and it will open a new chapter in Armenia’s economic policy. As per Sargsyan, Eurobonds will enable the private sector to attract inexpensive financial resources, since the private sector’s international bonds are at least 1-1.5 percent more expensive, if there are no government bonds.
“These interest rates could reduce in the future,” the PM said.
In Tigran Sargsyan’s words, if Eurobonds are issued with success, Armenia plans to repay the loan from Russia, since the countries with a rating of 2B are able to attract less expensive resources.