YEREVAN, December 19. /ARKA/. Deputy Prime Minister of Armenia Mher Grigoryan noted the slowdown in the process of establishing the capital market in the country.
“In terms of establishing the capital market, we have not acted as quickly as we should have. This process has slowed down, and it is extremely difficult to bring the economy into this field. This is a very serious issue,” Grigoryan said at the “Challenges and Opportunities on the Eve of 2025” discussion on Wednesday.
According to him, the economy had been adapted to a situation where it operated based on saving tax expenses, rather than focusing on brand development, transparency, and raising funds from the public.
“We are trying to change this stereotype, and we are implementing radical measures to reduce cash turnover. It may seem like a technical issue, but in reality, a fundamental shift in philosophy is needed because reducing cash is a guarantee of transparency,” Grigoryan stated.
The Deputy Prime Minister advocated for the use of tough measures. “We are working to implement solutions that will lead to global goals,” he emphasized. In his opinion, the issue lies in the fact that such an approach is not evident in the current tasks at hand.
On Government Support for Companies Entering the Stock Market
In July 2023, the Armenian government decided to subsidize companies that choose to list their securities on the Armenian Stock Exchange, in order to create opportunities for them to attract finance—not only from banks but also from the placement of shares and bonds.
To foster the development of the capital market, the government is preparing to subsidize costs related to entering the stock exchange, including listing, issuance of securities, and their placement.
The government will cover 50% of the services provided by international rating agencies for companies wishing to obtain an international credit rating. Moreover, if a company lists its securities on the Armenian stock exchange, the maximum subsidy will increase to 80%.
According to preliminary estimates from the Ministry of Economy, the project will help companies attract more financial resources. Over the first three years, the total support amount will be around 10.65 billion drams, resulting in new issues of shares and bonds worth 97.5 billion drams (approximately $1 = 394.62 drams).
