Fitch affirms Armenia at 'B+'; Outlook StableMarch 19, 2022 - 16:18 AMT PanARMENIAN.Net - Fitch Ratings has affirmed Armenia's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'B+' with a Stable Outlook. Armenia's 'B+' IDRs reflect strong per-capita income, governance and business environment indicators relative to peers, as well as a robust macroeconomic and fiscal policy framework and credible commitment to reform, underpinned by IMF support. Set against these strengths are a high share of foreign-currency denominated public debt, relatively weak external finances, and geopolitical risks, the agency said. Accrding to Fitch, Armenia will be adversely affected by spillovers from the crisis in Russia, given important linkages between the two economies, but Fitch presently expects that the sovereign's policy buffers, financing options, and long-dated commercial debt profile can help it navigate the shock without major impairment of repayment capacity. "The headwinds associated with the Ukraine conflict and sanctions on Russia have caused us to revise down our growth projection for 2022 sharply to 1.3% (previously 5.3%), as export growth (particularly to Russia) stalls, and remittances (and hence household consumption) decline. We project growth will return to 4.2% in 2023 ('B' median: 3.6%), reflecting favourable domestic investment prospects and an expected positive contribution of net trade," the agency said. Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | Russia clarifying reports on Baku’s alleged arms supply to Ukraine Russia says is carefully working to verify reports about alleged arms supplies from Azerbaijan to Ukraine Russia warns Armenia against “falling into West’s trap” Zakharova maintained, however, that anything that will benefit the people of Armenia can only be welcomed. CSTO: Armenia has not participated in secretariat’s work recently Recently Armenia has not participated in the work of the secretariat of the CSTO, Imangali Tasmagambetov said. Meeting with U.S., EU not against third parties, says Armenia The meeting scheduled for April 5 is dedicated to strengthening of the Armenia-EU-US cooperation, Yerevan added. |