Armenia has no plans to issue new Eurobonds in medium-term program

YEREVAN, SEPTEMBER 25, ARMENPRESS. The Armenian government has no plans to issue new Eurobonds with medium-term expenditures and plans to further focus on domestic debt, minister of finance Vardan Aramyan told reporters on September 25, reports Armenpress.

“One of the major pillars of our debt management is that we should slowly move from debt taking to domestic market since if you are able to issue domestic debt with domestic currency, you do not depend on currency fluctuations, this sums are being circulated in the domestic economy. You will not find any country in the world with a debt crisis which has appeared in this situation due to domestic debt. That’s why if countries are able to put an emphasis on the domestic debt, they immediately take this step. We want to further focus on the domestic debt with our medium-term programs”, the finance minister said.

The minister said there is a great interest towards the Armenian bonds in the international capital market, and the Armenian government frequently receives new proposals to appear in the debt market.

He reminded that Armenia conducted two Eurobond issues on September 10, 2013 and in late March, 2015: the first one has been made for 7 years and the second for 10 years. “When we issued the first one, the profitability was 6.25% during the initial issue, but today the profitability in the market is less by over 2 percentage points”, he said.

As for the Eurobonds issued for 10 year term with 7.25%, today the profitability of the same securities is lower by over 2 percentage points.