YEREVAN, March 17. /ARKA/. Central Bank of Armenia Governor Martin Galstyan stated the need to closely monitor issuers’ disclosures when issuing bonds.
He stated this at a press conference on Tuesday, responding to a question from ARKA news agency about whether the regulator plans to strengthen disclosure requirements or issuers’ financial indicators to mitigate these market risks.
In this regard, Galstyan noted that there are two development models: the Anglo-Saxon model and the continental European model.
“Under one model, primary responsibility lies with the investor, meaning you try to provide the investor with maximum information through prospectuses, but the decision regarding the risk—whether to buy the security or not—is entirely theirs. Continental Europe has chosen the path of greater consumer protection, in the sense of a more regulated market. And in this case, the banking system has become dominant,” he said. The head of the Central Bank noted that the issue of choosing a direction for the market’s development must be resolved.
“My colleagues from the Ministry of Economy, who are the main policymakers for capital market development, will, I assume, play a guiding role and provide answers to these questions: what direction our market should take and how we should behave in relation to the market, in particular, whether to share risks or not,” Galstyan said.
In December 2025, the head of the Central Bank noted that the volume of bonds issued by financial and non-financial institutions in Armenia exceeded 700 billion drams, slightly exceeding planned figures.
Galstyan stated that the leverage ratio (the degree of debt load – ed.) for bonds issued by partners in the real sector is quite high – approximately 17-19%. According to him, investors should be vigilant and pay closer attention to certain financial indicators, as leverage implies a certain risk.
