Tue, 8 April
15.1 C
Yerevan
USD: 391.14 RUB: 4.55 EUR: 428.65 GEL: 142.05 GBP: 501.60
spot_img

Reduction of rating in Armenia by the agency Moody’s was not unexpected for Finance Ministry of Armenia

YEREVAN, November 23. /ARKA/. Reduction of rating in Armenia by international rating agency Moody’s was not unexpected for the Armenian finance Ministry, informed Armenian Public TV Channel citing the words of Finance Minister Vache Gabrielyan.

The agency Moody’s decreased the forecast of long-term rating of default issuer of Armenia in foreign and national currency (Ва2) from “stable” to “negative”.

Moody’s considers that the reason of worsening of sovereign rating of Armenia into “negative” are the increasing risks of economic growth delay of European countries and Russia where 58% of goods are exported from Armenia. The agency also considered the dependence of Armenian economy from export, money transfers and direct foreign investments, particularly Russian investments which are risky for the position of Armenia in the foreign market.

The second reason of worsening Moody’s forecast is the risk of Armenia’s accession to the deepened debt metrics in other economically difficult period.

Gabrielyan said that the increase of foreign debt of the country and the risks related to the export of Armenian goods in European and Russian markets are taken into account in the state budget of Armenia for 2012.

He said that economic decline recorded in October 2011 in Armenia has a seasonal character compared to September 2011.

By the assessments of Moody’s, in 2011 Armenia expects high deficit in the state budget (about 11% in GDP) and increase of the indicator of state debt to 35% in GDP compared to pre-crisis 14% in GDP in 2008.

Moody’s reviewed the forecast from “stable” to “negative” by country ceiling of currency deposits of Armenia – “Ba3″. Country ceiling by debt liabilities in national currency was reduced to “А3″ to “Baa1″. Country ceiling by debt liabilities in foreign currency was approved on the level of “Baa3″ with “stable” forecast.

Rating agency can return the forecast by the ratings of Armenia to “stable” level in case of reduction of risks in the country, though in short-term and mid-term perspectives the possibility of such a review is provided to analysts of Moody’s very low. -0-

spot_img

POPULAR

Ministry of Economy and  IMF delegation discussed Armenia’s economic diversification, export strategy

Yesterday, Armenian Economy Minister Gevorg Papoyan received a delegation led by Iva Petrova, head of the International Monetary Fund (IMF) mission in Armenia.

Concept of a private investment fund in Armenia discussed by Minister of Economy with Nubar Afeyan

The concept of creating a private investment fund in Armenia within the framework of effective public-private partnership was discussed by Armenian Minister of Economy Gevorg Papoyan and American businessman Nubar Afeyan.

Armenia discusses bankruptcy reforms with ADB and AFD

Reforms of Armenian legislation in the field of bankruptcy were discussed at a meeting between Deputy Minister of Justice of Armenia Tigran Dadunts and representatives of the Asian Development Bank (ADB) and the French Development Agency (AFD).

Average AMD/USD exchange rate in March was 1.9% lower than a year ago

In March 2025, the average AMD/USD exchange rate was 392.8, which is 1.9% lower than in March 2024 (400.4 AMD), the National Statistical Committee reports.

Banks and SMEs discuss prospects for cooperation (VIDEO)

The Union of Armenian Banks, in collaboration with the German-Armenian Fund, brought together representatives of the financial sector to conduct an important dialogue between banks and SMEs, summarize the past year, and plan for future work.

LATEST NEWS

spot_imgspot_imgspot_img