A question from Armbanks’ visitor
How would you assess the current situation in the corporate debt market of Armenia?
The question is answered by Irina Seylanyan, Deputy Chief Executive Officer of HSBC Bank Armenia, Head of Global Banking and Markets.
“The market of corporate debt in Armenia is still at the development stage. After a period of stagnation, caused by the global economic and financial crisis and the devaluation of Armenia’s national currency, the dram, in 2009, the situation is improving with visible increasing activity at the market. We expect major changes and increased activity at the corporate debt market after the introduction of mandatory funded pension system in 2014, «she said.
The process of pension reform in Armenia was launched on January 1, 2011 after introduction of voluntary funded pension system. From January 1, 2014 the country will shift to mandatory funded pension system for citizens who were born after January 1, 1974. The new pension scheme will allow future retirees to themselves manage the size of their pensions. The new system will apply from 2014 to all employed able-bodied citizens below 40, including in rural areas. Each employee will place on a monthly basis in his/ her savings account 5% of their salary, and additional 5%, but not more than 25 thousand drams, will be placed by the government.
