YEREVAN, February 17. /ARKA/. The volume of transactions in 2011 with corporate bonds at NASDAQ OMX Armenia stock exchange contracted by 75% to 708.98 million drams, exchange director Konstantin Saroyan, said today, attributing the decline to lack of business incentives since it is more beneficial for potential investors to invest in government bonds with higher returns.
He said this situation hinders the development of corporate bonds market, since it is not profitable for companies to issue bonds with higher yields and to attract additional funds they prefer to take bank loans.
According to him, to change the situation it is necessary to create alternative mechanisms- for example, corporate bonds denominated in U.S. dollars. He said the work on it with market participants and the Central Bank is underway.
“This could become an alternative to bank credits and allow companies to raise additional funds denominated in foreign currency,” said Saroyan, adding that local companies prefer loans in USD.
Saroyan said in 2011 the fourth issue of Araratbank’s bonds as well as of Valletta LLC were listed. Also in December 2011 the National Mortgage Company issued its first bonds.
In January 2008, Nordic exchange operator OMX Group acquired 100% of shares of the Armenian Stock Exchange (Armex) and the Central Depository of Armenia (CDA).After the combination of NASDAQ and OMX in February 2008, Armex and CDA have become fully owned by the NASDAQ OMX Group. On January 27, 2009, “Armenian Stock Exchange” ojsc was officially renamed as “NASDAQ OMX Armenia” ojsc. On June 5, 2009, “NASDAQ OMX Armenia” ojsc became the owner of 100% of the shares of the “Central Depository of Armenia” ojsc. M.M. -0 – ($1 – 389.13 drams). -0 –
