Government securities dominate Armenia’s capital market, with a volume of approximately $7.4 billion – Galstyan

YEREVAN, May 29. /ARKA/. Government securities dominate Armenia’s capital market, with a volume of approximately $7.4 billion in circulation, stated Martin Galstyan, Chairman of the Central Bank of the Republic.

“Corporate bonds follow, with approximately $2.2 billion, while the equity market remains relatively small, with a market capitalization of approximately $500 million,” he said at an international conference dedicated to the 25th anniversary of the Armenia Securities Exchange.

According to Galstyan, the positive trend in market development is obvious.

“Real sector companies are entering the market, which is an important signal,” he noted.

The Central Bank Governor cited bond issues by Electric Networks of Armenia (approximately $80 million), Viva Armenia (approximately $80 million), Zangezur Copper and Molybdenum Combine (approximately $50 million), and Team Telecom (approximately $45 million) as key examples.

Speaking about the current state of the Armenian capital market, Galstyan noted that it already occupies a certain place in the financial market.

“On the supply side, we currently have 50 corporate issuers. The intermediary segment is well developed: 42 entities, including 17 banks and 25 investment companies. In addition, there are six investment fund managers, two of which manage pension funds with a net asset value of approximately $4 billion, creating a solid investor base. The market infrastructure is further supported by AMX and the Central Depository of Armenia,” Galstyan said.

The Central Bank Governor emphasized that international investors are demonstrating a record high level of confidence in Armenian government bonds.

“In 2018, foreign investor participation in the domestic state market amounted to only 3.6 billion drams. By 2025, this figure had grown to 177 billion drams, representing approximately 7% of all dram-denominated issues,” he explained.

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