YEREVAN, September 23. /ARKA/. The government of Armenia may attract cheap resources by issuing pan-Armenian bonds, Tatul Manaseryan, head of a Yerevan-based think tank Alternative, told reporters on Monday.
Speaking at a news conference, Manaseryan said the large public debt of the government could be covered by the resources available now in the banking sector.
“Many people do not invest in the economy, preferring to keep their money in banks or under mattresses, but if they are offered the idea of investing in pan-Armenian bonds, for example, for the construction of a new nuclear power plant, I’m more than sure that every Armenian will want to take part in such a project,” said Manaseryan.
He said that such bonds could be popular among Armenians living outside their homeland as well, who will thereby contribute to the development of the Armenian economy.
According to Manaseryan, attracting such funds will be quite cheap, since the government will determine the rate, which could be for example, even at 1%.
Manaseryan further said that transformation of many large state companies into open joint stock companies could also cause serious public interest.
According to the National Statistical Committee, Armenia’s external public debt over the previous 15 months decreased by $120 million. The total public debt of the government at the end of June 2019 stood at $6.934 billion; the external debt stood at $4.930.9 billion.
Armenia first issued $700 million worth dollar-denominated bonds in September 2013 at the yield of 6.25 percent and a maturity of 7 years. The bulk of $700 million was used to repay a $500 million Russian loan ten years ahead of schedule. The second issue was carried out in March 2015 in the amount of $500 million with a yield of 7.25% and a maturity period of 10 years. -0—
