YEREVAN, March 10. /ARKA/. Practical steps are needed to develop the capital market in Armenia, said Mikael Margaryan, CEO and Chairman of the Board of Directors of the investment company Cube Invest, in an interview with ARKA news agency.
Speaking about financial instruments and initiatives to stimulate the development of the capital market in Armenia, he emphasized the importance of the involvement of the Armenia Stock Exchange (AMX), especially after it acquired a controlling stake from the Warsaw Stock Exchange, one of the largest exchanges in Eastern Europe.
“Currently, AMX has limited functions and tools, although it is developing international cooperation. […] AMX has a program, the implementation of which will help activate the capital market. We, as market participants, also have a wide range of activities to focus on, including raising financial literacy levels and working with potential issuers. Joint efforts are needed for further development,” he said.
Regarding existing risks, Margaryan pointed out that the level of financial literacy in Armenia has never been particularly high, and the development of capital markets has always been below average.
“However, I am happy to say that at least in terms of financial literacy, progress is being made, which, in my opinion, is linked to a certain influx of financial capital. More money is circulating in the economy, people are living better, and their savings are growing. In addition to traditionally keeping cash at home or in deposits, they are increasingly interested in alternative instruments, such as bonds. With the government’s approval of a unified strategy for the development of the capital market in 2020, a number of measures are being implemented that will help activate the market. The level of financial literacy is also improving with the arrival of new players on the market,” he emphasized.
At the same time, the CEO of Cube Invest stated that he does not see any global barriers to the development of the capital market, apart from Armenia’s status as a small country with its own currency, but with limited resources and financial capabilities, and operating under certain geopolitical conditions.
In response to whether he agrees with AMX CEO Hayk Yeganyan’s opinion that the development of the capital market in Armenia is partially hindered by a lack of qualified financial intermediaries, investment banks, and brokers, Margaryan noted that the more participants there are, the more transactions take place, which opens up more opportunities and new products.
“I agree with Hayk Yeganyan that market participants are crucial. Since 2023, several new participants have joined, and new investment companies have opened. This is very positive because the arrival of each new company means more clients, and their PR activities are beneficial for the market as a whole. I am optimistic about the future, and I believe the market will continue to grow,” concluded the CEO of Cube Invest.
