YEREVAN, September 26. /ARКА/. The risk associated with Armenian Eurobonds in international markets has diminished by roughly 15-20 basis points since August 8, as stated by Martin Galstyan, the Chairman of the Central Bank of Armenia.
He made this remark in response to a query on Public Television regarding the implications of the initialing of the peace treaty between Armenia and Azerbaijan, as well as the signing of the trilateral Washington Declaration.
He emphasized that a positive sentiment is already apparent in interactions with partners, international organizations, and financial groups, and that there is a general optimism regarding the developments following August 8.
On August 19, Fitch Ratings indicated that the realization of a peace agreement between Armenia and Azerbaijan is unlikely to have an immediate effect on the ratings of either country; however, it could foster positive medium-term trends within the credit sector. “Specifically, this pertains to our Eurobonds that are issued in international markets.
‘Following August 8, we have observed a slight decrease in the spread, which indicates a reduction in risk. This downward trend has also been noted recently in other developing nations, but in Armenia, it is more pronounced – with a decline in the risk of Armenian Eurobonds by approximately 15-20 basis points,” Galstyan remarked.
On March 5, 2025, Armenia issued $750 million in Eurobonds on the international capital market, offering a yield of 7.1% and a maturity period of 10 years. Martin Galstyan informed the ARKA news agency in early May that the demand for these Eurobonds reached $2.5 billion. Beginning July 8, 2025, trading of Eurobonds exceeding $502 million was authorized on the Armenian Stock Exchange trading system.
Concurrently, the Central Bank Governor pointed out that, under these circumstances, bank interest rates should also experience a decline.
“There is a slight reduction in risk. Everyone is anticipating the next step – the finalization of the peace agreement. In such a scenario, we can expect a more substantial downward adjustment, which would enable us to modify the yield curves of our government bonds, as well as some credit products offered by our banks,” he stated.
The seven-point declaration signed following the trilateral meeting between Armenian Prime Minister Nikol Pashinyan, U.S. President Donald Trump, and Azerbaijani President Ilham Aliyev on August 8 in Washington includes the initialing of the “Agreement on Peace and Interstate Relations between Armenia and Azerbaijan”, the joint application to the OSCE on the dissolution of the OSCE Minsk Group mechanisms, the unblocking of regional communications within the framework of the principles of territorial integrity, sovereignty, and jurisdiction of countries and on the basis of reciprocity, as well as the “Trump Route for International Peace and Prosperity” project.-0-
