YEREVAN, October 5. /ARKA/. The week’s financial agenda combined discussions on reforms with the IMF, supervisory measures by the Central Bank of Armenia (CBA), and preparations for budget financing. The banking and corporate segments of the capital market saw the completion of bond placements.
1. Financial stability: CBA and IMF review reform progress
On September 28, Martin Galstyan, Governor of the Central Bank of Armenia, held a concluding meeting with the IMF mission. The parties discussed the macroeconomic situation, economic policy, and the fulfillment of structural benchmarks under the Stand-By Arrangement program, including financial system reforms.
The meeting focused practically on verifying compliance with existing obligations and coordinating future work.
2. Currency market: Euro depreciates against the dram more than the dollar
According to the Central Bank of Armenia, between September 28 and October 2, the euro exchange rate fell from 413.19 to 407.29 drams—a decline of 1.43%. The dollar exchange rate dropped from 363.34 to 362.55 drams (down 0.22%), while the ruble rose from 4.3043 to 4.3363 drams (up 0.74%).
Thus, the dram’s appreciation was more pronounced against the euro. This impacted the dram-equivalent value of corporate settlements conducted in the European currency.
3. Banks and compliance: CBA warns against unlicensed lending
On September 30, the Central Bank of Armenia announced that a company operating on Facebook under the name “My Fin UCO” was offering lending services without a license from the regulator. According to the CBA, the organization operates outside its supervision; citizens are advised to use the services of licensed financial institutions. For clients, verifying the organization’s status in Central Bank registers prior to sharing personal data or signing a contract is of practical importance. For market participants, this announcement highlights the role of licensing and supervisory monitoring in protecting financial service consumers.
4. Bank Bonds: Unibank Completes AMD-Denominated Issuance
On October 2, Unibank announced the early completion of its AMD-denominated bond issuance, totaling AMD 3 billion. The placement of the USD-denominated tranche—valued at $3 million—remains ongoing.
The completion of the AMD issuance indicates that the target funding volume for this tranche has been secured. The ongoing USD placement offers continued opportunities to purchase the securities on the primary market under the published terms.
5. Corporate Capital Market: Team Holding Completes Bond Issuance Program
On September 30, Team Holding announced the completion of its public bond issuance program. The total volume reached $31.5 million and AMD 1.4 billion; the placement was conducted in partnership with Freedom Broker Armenia. According to Group Co-founder and Director Hayk Yesayan, the proceeds are earmarked for developing the Group’s infrastructure, including logistics and energy sectors.
For investors, such instruments expand the range of available issuers while necessitating an assessment of the Group’s financial health and the specific terms of the issuance. For bondholders, key factors going forward will include the issuer’s ongoing disclosures, the utilization of raised funds, and the fulfillment of obligations associated with the securities.
6. Public Finance: Government Approves Draft Budget for 2027
On October 1, the Armenian government approved the draft law on the 2027 state budget for submission to the National Assembly. According to the draft, Armenia’s consolidated budget for 2027 projects revenues of AMD 3.8 trillion (excluding inter-budgetary transfers), expenditures of AMD 4.2 trillion (excluding inter-budgetary transfers), and a deficit of AMD 468.2 billion.
Government approval moves the draft to the parliamentary review stage. For financial market participants, it serves as a benchmark for assessing fiscal policy; the final parameters will be determined by the enacted law.
7. Budget Financing: Armenia Plans to Secure €250 Million from AFD
On October 1, Armenia and the French Development Agency (AFD) signed an agreement for a €250 million credit line. The funds are intended to finance the state budget deficit under a new budget support program co-financed by the AFD and the Asian Development Bank.
The program entails reforms in public finance management, improvements in expenditure and investment efficiency, domestic resource mobilization, business environment enhancement, public debt management, and financial market development.
The practical significance of this decision lies in the successful conclusion of the approval process for an external source of budget deficit financing.
Weekly Summary
Armenia’s financial agenda over the past week centered on three key areas: engagement with international financial institutions, regulatory decisions, and the raising of funds by both the public and private sectors. Collectively, the week’s events reflect ongoing activity in financial regulation and fiscal policy, as well as in the debt capital market.
