YEREVAN, October 11. /ARKA/. The government of Armenia is set to look into the demand for so-called Diaspora bonds as part of its development program.
Diaspora bonds are government securities issued on favorable terms for individuals who do not reside in their home country, but are associated with it through ethnicity or shared cultural and other values.
A draft Armenian law on Diaspora bonds was developed by the government agencies in cooperation with the Association of Financial Market Participants.
“We often hear about dissatisfaction of the Diaspora Armenian about the lack of investment mechanisms in their homeland country. The Diaspora bonds could be one such tool. The government can, as a pioneer, take this step by bringing these financial instruments closer to the Diaspora,” Karen Zakaryan, executive director of the Association of Financial Market Participants, said in an interview with the Public Television of Armenia.
He said this issue needs an in-depth discussion with the Diaspora Armenians in order to understand how much this tool is in demand.
“On the demand side, we, of course, may have preliminary estimates, but everything will depend on the correct dialogue. This is a platform for dialogue,” he said.
“The Diaspora bonds will not be only aimed at boosting the development of Armenia’s capital market. We attach great importance to the participation of the Diaspora in events taking place in the country, as well as in its economic development. Thus, we will expand our connection with the Diaspora, as well as use its potential,” said another economist Yeghishe Soghomonyan.
He noted that if a decision is made to issue Diaspora bonds, both the state and the Diaspora will benefit.
He said the demand will be high for such bonds if the government explains where and how the proceeds will be used.’-0-
