YEREVAN, October 19. /ARKA/. Armenia’s financial agenda over the past week encompassed the development of the government securities market, regulatory changes for banking operations, cooperation with international financial institutions, and the subsidization of financing for energy storage systems.
1. Capital Market: 30-Year Government Bonds Worth 25 Billion Drams Placed on the AMX
On October 13, an auction was held on the Armenia Securities Exchange (AMX) for the placement of 30-year government bonds totaling 25 billion drams. According to the AMX, the entire issue was placed, with demand reaching 41.84 billion drams. The yield at the weighted average price was 9.7428%, with an annual coupon rate of 9.2%.
For banks, investment firms, and institutional investors, this placement provides an additional volume of long-term, dram-denominated financial instruments.
2. Banking Regulation: Electronic Processing of Real Estate Collateral Simplified in Armenia
Legislative amendments in Armenia now allow for certain standard, mixed-type real estate collateral agreements—involving banks and credit organizations—to be concluded electronically, without the need for notarization. The relevant provisions, part of a bill to amend and supplement the Civil Code of the Republic of Armenia, were discussed on October 14 during a meeting of the Public Council under the head of the Cadastre Committee.
For the banking sector, this new mechanism could reduce the number of mandatory procedures required when executing collateral agreements. For borrowers, it simplifies the documentation process for credit transactions, while for financial institutions, it underscores the growing importance of electronic document management and the digital identification of transaction participants. 3. Foreign Exchange Market: The Euro Showed More Pronounced Movement
According to the Central Bank of Armenia, between October 12 and 16, the average market exchange rate for the US dollar rose from 362.21 to 362.34 drams—an increase of 0.04%. The euro exchange rate climbed from 404.88 to 407.92 drams (up 0.75%), while the Russian ruble moved from 4.2997 to 4.3346 drams (up 0.81%).
While the fluctuations in the dollar and ruble exchange rates remained limited in absolute terms, the euro exhibited more significant movement. For banks and companies with foreign currency liabilities, such trends underscore the continued importance of managing currency liquidity and accounting for exchange rate volatility in financial settlements.
4. Mortgage Financing: Parliament Ratifies $284.4 Million Agreements with the IBRD
On October 12, the National Assembly of Armenia ratified loan and grant agreements with the International Bank for Reconstruction and Development (IBRD)—part of the World Bank Group—totaling $284.4 million. The funding is intended to provide housing for individuals forcibly displaced from Nagorno-Karabakh and to support the development of Armenia’s mortgage market.
For the financial sector, these agreements could provide an additional resource base for mortgage lending and expand the range of state support instruments for the housing market.
5. International Investments: World Bank Group Mobilizes $342 Million in Private Capital
According to data released on October 13 by the World Bank’s Armenian office, the World Bank Group mobilized $342 million in private capital for the Armenian economy in the 2026 fiscal year. For comparison, the figure for the 2022 fiscal year was $6 million—representing a 56-fold increase in mobilized capital.
This metric reflects the scale of private financing mobilized with the participation of World Bank Group institutions. Such mechanisms are used to attract investment into the economy, supplementing public and international funding with private resources.
For the financial market, these data highlight the role of international development institutions in financing investment projects.
6. State Support: Armenia Introduces Subsidies for Loans and Leases on Energy Storage Systems
In a resolution dated October 15, the Government of Armenia expanded its economic modernization program to include state subsidies for interest rates on loans and leases used to acquire energy storage systems and their components.
This support applies to equipment designed exclusively for storing electricity generated by solar power plants or solar panels. The new provisions take effect on October 25, 2026, and supplement an existing state program—in place since 2020—that subsidizes the financing of investment projects.
For banks, leasing companies, and credit organizations, this decision expands the range of equipment eligible for state-supported financing. For businesses investing in solar energy, the mechanism offers the potential to reduce interest costs on related loans and lease agreements. 7. International Financing: Armenian Government Approves Proposal to Extend EIB Loan Availability Period
On October 15, the government of Armenia approved a proposal to sign a letter agreement amending the existing finance contract with the European Investment Bank (EIB). The amendments provide for an extension of the availability period for loan funds intended for the implementation of water infrastructure projects. Approximately €7.4 million has been allocated for the relevant works.
For the state’s public finances and the infrastructure sector, this decision is significant as it preserves access to EIB credit resources within the framework of existing commitments. It also underscores the role played by international financial institutions in funding Armenia’s long-term infrastructure programs.
Weekly Highlights
Last week, market participants focused on the terms for raising long-term capital, the development of digital banking procedures, and mechanisms for financing investment projects. The involvement of international financial institutions remains particularly important for the development of the mortgage market, the attraction of private capital, and the execution of infrastructure programs.
