September 30
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YEREVAN. - Securities in Armenian drams will become more available for foreign investors.

Chief Executive Officer of Nasdaq OMX Armenia, Konstantin Saroyan, told the aforementioned to Armenian News –, commenting on the draft bill on introducing the ICDM standard in Armenia.

The bill will prove very useful, since the purchase of securities in Armenian drams by foreign investors is a very topical subject, he added. After the bill takes effect, these securities can be offered to foreign investors as forwards or swaps. In this case it will be possible to stipulate in the contract the rate used by investors when exchanging the foreign currency into drams for purchasing local shares or bonds, and then establish beforehand the rate they use to convert dram into another currency after receiving their income.

Such agreements can be signed now as well, on the basis of ISDA (International Swaps and Derivatives Association) standard form agreement. The technical opportunity for this is also available through the link of Clearstream Clearing Center, which has been operating in Armenia in bilateral regime (for transactions to/from Armenia) since mid-2016. 

If such agreement is enacted in normal conditions, no problems will arise.  ''But what if one of the transaction participants doesn't fulfill his obligation? How can his partner carry out basic assets? And now the reforms in legislation will propose international standards for accounting and assessment of these assets, as well as their implementation in case issues arise in regard to contracts. This will make contracts more acceptable for investors,'' Saroyan said.

The changes in  the Armenian Law on Securities Market were worked out in cooperation with the European Bank for Reconstruction and Development (EBRD), following the ISDA model. 

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