The risk premium on Armenian Eurobonds has decreased from 400 to 190 basis points: Central Bank Governor

YEREVAN, May 5. /ARKA/. The risk premium on Armenian Eurobonds has decreased significantly, from 400 to 190 basis points, stated Martin Galstyan, Governor of the Central Bank of Armenia.

“This indicator represents the difference in yield between our Eurobonds and US government bonds. We have an objective indicator—the risk premium. It has currently decreased from the previous 400 basis points, or about 4%, to 190 basis points. The yield on government bonds denominated in Armenian drams has also decreased significantly,” Galstyan noted at a parliamentary session on Tuesday.

According to him, the yield on ten-year dram-denominated government bonds currently exceeds 8%.

“Moreover, the main investors are not only Armenian banks and financial institutions, but also reputable international companies. For example, Barclays and Morgan Stanley invest in Armenian dram-denominated government bonds,” Galstyan said.

The head of the Central Bank emphasized that Armenia “has gone from zero to a level where the share of government debt held by international institutional investors has approached 10%.”

Earlier, in January 2026, Armenian Finance Minister Vahe Hovhannisyan announced a reduction in the risk premium on Armenian Eurobonds, calling it historically low. According to him, while in March 2025, Eurobonds were issued at a rate of 7.1%, and the risk premium was 2.86%, or 286 basis points, in January 2026 this figure had fallen to 196 basis points, or 1.96%.

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