Sun, 23 February
-7.9 C
Yerevan
USD: 394.41 RUB: 4.46 EUR: 412.67 GEL: 140.79 GBP: 498.77
spot_img

Fitch Ratings: effects of Armenia’s defeat in Nagorno-Karabakh war likely to persist.

YEREVAN, March 29, /ARKA/ Fitch Ratings said it has affirmed Armenia’s Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) at ‘B+’ with a Stable Outlook.

According to Fitch Ratings, Armenia’s ‘B+’ IDRs reflect fairly high government and external indebtedness, relatively weak external finances and geopolitical tensions that have the potential to escalate into military conflict.

These are balanced against high income per capita; governance, development and ease of doing business indicators that outperform the ‘B’ rated median; and institutions that have facilitated orderly political transitions and weathered the 2020 pandemic shock and six-week war with Azerbaijan. It also has a robust macroeconomic and fiscal policy framework, and credible commitment to reform, both of which are underpinned by the IMF stand-by arrangement (SBA).

Fitch expects that prime minister Nikol Pashinyan’s ‘My Step’ alliance should be able to maintain a working majority coalition in parliament at the 20 June 2021 snap elections. After Pashinyan signed a Russia-brokered and maintained ceasefire agreement on 9 November 2020 to end the Nagorno-Karabakh conflict, the country has seen a period of heightened protests and political interventions by the military calling for his resignation. Although we expect Pashinyan to retain power, support for his government has diminished since the war and could exacerbate the challenges of implementing structural reforms and tackling corruption.

The effects of Armenia’s defeat in the Nagorno-Karabakh war are likely to persist, with the influx of refugees to Armenia numbering in the tens of thousands (Armenia’s 2019 population: 3 million), and the need to re-establish diplomatic efforts through the previously failed OSCE Minsk Group process. Despite the presence of Russian peacekeeping forces, tensions in Nagorno-Karabakh have the potential to reignite due to the absence of a demilitarised zone. The war has also further entrenched Armenia’s reliance on Russia for security and economic relations.

spot_img

POPULAR

Insurance market of Armenia is in embryonic state

Insurance market of Armenia is in embryonic state

AMX wins two prestigious Global Banking & Finance Awards

The Armenian Securities Exchange (AMX) announces that it has been recognized as the “Best Stock Exchange in the South Caucasus 2025” and the “Fastest Growing Stock Exchange in the South Caucasus 2025” by the prestigious Global Banking & Finance Awards magazine.

Central Bank of Armenia warns of a new type of fraud with CMTPL insurance

The Central Bank of Armenia warns motorists against a new type of fraud, saying in a statement that after looking into a set of reports and notifications of citizens, it has been found that recently there has been an increase in cases when unknown persons present themselves as employees of insurance companies and offer to conclude compulsory motor third-party liability insurance  (CMTPL) contracts remotely.

Euro down 1.11 points to AMD 414.62

The average market exchange rate of the US dollar to the Armenian dram on February 18, 2025, totalled 396.23 drams, down 0.16 points compared to February 17.

TCF issues AMD 400 mln bonds to expand and step up development – co-founder

TCF has issued AMD 400 million coupon bonds at the rate of 12.75% to ensure further growth and strengthen development, TCF co-founder and director Narek Vardanyan told ARKA news agency in an exclusive interview.

LATEST NEWS

spot_imgspot_imgspot_img