YEREVAN, December 13. /ARKA/. There are risks that further tightening of financial conditions or higher risk aversion may lead to higher financing costs for rolling over Armenia’s debt on foreign markets, Yulia Ustyugova, IMF Resident Representative in Armenia, said in an interview with ARKA News Agency.
In its latest review, Moody’s said that Armenia would face Eurobonds financing risks.
In particular, the Eurobonds worth USD 500 million have to be repaid in September 2020.
Ustrugova said the authorities, therefore, will be taking into account the global financial market sentiment when assessing the pros and cons of all the options to rollover this debt.
“Importantly, the final decision will need to fit into the wider medium-term debt management strategy, capital market development strategy and macro-fiscal framework, as well as consider impact on monetary conditions and foreign exchange market,” she said.
Armenia has carries out two Eurobond emissions. The first issue took place on September 19, 2013 – Eurobonds worth $700 million were issued then with a six-percent yield and the maturity term of 7 years before March 30, 2020. Now bonds totaling $500 million are in circulation, since the finance ministry redeemed $200 million.
The second issue took place on March 26, 2015. Bonds worth $500 million were issued then. Their yield was 7.15% and maturity term was ten years until March 26, 2025. -0—
