Money & Bank


IMF: Tightening of financial conditions may drive up financing costs for rolling over Armenia’s debt on foreign markets
/Dec 13/ArmBanks/

YEREVAN – There are risks that further tightening of financial conditions or higher risk aversion may lead to higher financing costs for rolling over Armenia’s debt on foreign markets, Yulia Ustyugova, IMF Resident Representative in Armenia, said in an interview with ARKA News Agency.

In its latest review, Moody’s said that Armenia would face Eurobonds financing risks.

In particular, the Eurobonds worth USD 500 million have to be repaid in September 2020.

Ustrugova said the authorities, therefore, will be taking into account the global financial market sentiment when assessing the pros and cons of all the options to rollover this debt.

“Importantly, the final decision will need to fit into the wider medium-term debt management strategy, capital market development strategy and macro-fiscal framework, as well as consider impact on monetary conditions and foreign exchange market,” she said.

Armenia has carries out two Eurobond emissions. The first issue took place on September 19, 2013 – Eurobonds worth $700 million were issued then with a six-percent yield and the maturity term of 7 years before March 30, 2020. Now bonds totaling $500 million are in circulation, since the finance ministry redeemed $200 million.

The second issue took place on March 26, 2015. Bonds worth $500 million were issued then. Their yield was 7.15% and maturity term was ten years until March 26, 2025.

Armenia acting PM: World Bank more interested in our productiveness than our government? Armenia acting PM: World Bank more interested in our productiveness than our government?
/Dec 13/

YEREVAN. – We need to see to it that we get more results with less resources. But we have an absence of discourse with our partner, the World Bank.

The Acting Minister of Economic Development and Investments, Tigran Khachatryan, said the aforementioned at Thursday’s Cabinet session of the Government of Armenia.

To note, the matter refers to the government decision on terminating the activities of the Foreign Financing Projects Management Centre, as of March 31, 2019. The WB office in Armenia, however, had submitted its respective concerns to the government.

“That is, is the World Bank more interested in our productiveness than our government?” Acting Prime Minister Nikol Pashinyan responded, in turn. “If anybody, or individual who is more concerned with the productiveness of the activities of the Armenian government gets out of here, then sorry, [but] serious conclusions should be made here.”

Pashinyan announces reduction of student loan interest rates
/Dec 13/

The Armenian government is working with the Central Bank on reducing the interest rates of student loans, acting Prime Minister Nikol Pashinyan said during today’s Cabinet session.

“Currently we are working with the Central Bank aimed at decreasing the student loan interest rates. There is a proposal from the CBA which I have sent to the finance ministry. I hope that this will be a significant assistance, but in general we need to look for mechanisms which will not create any threat for distinguished students for their future studies, but they must really be students with high performance, which will also give an impetus to form higher demand for education”, Nikol Pashinyan said.

Central bank calls allegation about default expected in Armenia as certain media sources’ mere fiction
/Dec 17/ARKA/

YEREVAN, December 17. /ARKA/. The Central Bank denies certain media sources’ allegations that Armenia’s national currency will drop soon and that the country will face default. 
Harut Kbeyan, the regulator’s spokesman, said on his Facebook page that this is no more than a mere fiction of these media sources. 

In particular, this allegation was released by Zhamanak with reference to the newspaper’s sources close to the authorities, and certain media sources disseminated it. 
“The information that has nothing in common with the reality was published in one of the newspapers,” the central bank spokesman said. “More than that – such fictions are aimed at creation of adverse outlooks and formation of artificial conduct.”
Kbeyan urged media sources not to generate “bestsellers” connected with inflation, foreign exchange rates, reserves, deposits, loans and the financial system. 
“Today Armenia’s financial system is firm and stable, and all artificial comments on the above-mentioned themes can create groundless outlooks, which are not relevant in terms of long-term development of the country,” he said