Vache Gabrielyan: Armenia has good outlooks for developing corporate bonds market

PanARMENIAN.Net - Vice Chairman of the Central Bank of Armenia Vache Gabrielyan said that Armenia has good outlooks for developing the corporate bonds market.

“The banks, assets of which total 93% in the financial system of Armenia, dominate in the market, while assets of investment companies make 1-1.5% of the market,” Gabrielyan told Cbonds Russia & CIS Fixed Income Conference on July 1.

14 corporate issuers are operating in Armenia as of the first quarter of 2010, including five banks and an investment company, while the rest are representatives of large business.

“The deals amounted to AMD 4.2bln during the first quarter of 2010, of which 75% are deals on corporate bonds,” Gabrielyan said.

“Armenia has created favorable conditions for foreign investors, what is proved by the fact that 75% of commercial banks in Armenia are based on foreign capital.

“The state does its utmost to create favorable infrastructure for the development of this business,” noted Gabrielyan.

Specifically, he pointed to the assignment of ratings to all non-bank issuers by the CBA, creation of the National Mortgage Company UCO, which will be issuing bonds. Besides, he referred to the implementation of pension reforms in Armenia, saying that they will also contribute to the development of corporate sector.