{"id":275489,"date":"2026-06-29T11:30:16","date_gmt":"2026-06-29T07:30:16","guid":{"rendered":"https:\/\/armbanks.am\/?p=275489"},"modified":"2026-06-29T11:30:18","modified_gmt":"2026-06-29T07:30:18","slug":"armbanks-weekly-digest-key-events-in-armenias-financial-market-june-22-28","status":"publish","type":"post","link":"https:\/\/armbanks.am\/en\/2026\/06\/29\/275489\/","title":{"rendered":"Armbanks Weekly Digest: Key Events in Armenia’s Financial Market (June 22-28)"},"content":{"rendered":"\n

YEREVAN, June 29. \/ARKA\/. <\/strong>The week in Armenia’s financial market was dominated by the debt agenda, Central Bank statements, currency dynamics, and decisions regarding non-cash payments. The focus remained on funding costs, the structure of public debt, international investor participation in dram-denominated instruments, and medium-term economic growth parameters.<\/p>\n\n\n\n

1. Public Debt: Armenia Targets a Lower Ratio to GDP<\/p>\n\n\n\n

On June 26, Deputy Finance Minister Avag Avanesyan announced on the sidelines of the business forum marking the 20th anniversary of the Eurasian Development Bank (EDB) that the government aims to increase the public debt-to-GDP ratio to 45% within approximately five years.<\/p>\n\n\n\n

For banks and investors, the debt trajectory remains important through the government securities market, borrowing costs, and fiscal sustainability assessments. Reducing the debt burden could create a more sustainable framework for debt servicing and liquidity management.<\/p>\n\n\n\n

2. Banking Sector: Central Bank Sees No Grounds for Talking About Bank Excess Profits<\/p>\n\n\n\n

On June 23, Martin Galstyan, Chairman of the Central Bank of Armenia, stated on the Public Television of Armenia (PTA) that the notion of excess profits in the banking system is unfounded, and that the profitability of Armenian banks is generally comparable to that of other countries in the region.<\/p>\n\n\n\n

The Central Bank Governor noted that after 2022, banks received an additional boost from the influx of capital and non-resident services, which effectively led to the export of financial services. According to the ARKA ranking, the net profit of the Armenian banking system in 2025 amounted to 421.3 billion drams, an increase of 16.01%.<\/p>\n\n\n\n

This signal could be important for the market amid discussions about the tax burden on the banking sector. Effective January 1, 2027, it is proposed to increase the tax rate on dividends paid by banks to individuals and organizations to 15%, up from the current 5%.<\/p>\n\n\n\n

3. Macroeconomics: Ministry of Finance forecasts medium-term GDP growth at 5.4\u20135.6%<\/p>\n\n\n\n

On June 25, at a business forum marking the 20th anniversary of the Eurasian Development Bank (EDB), Armenian Finance Minister Vahe Hovhannisyan announced that the government forecasts stable economic growth of 5.4\u20135.6% annually in the medium term. He noted that over the past five years, Armenia’s economy has grown by an average of 7.9% annually, and in 2025, real GDP will increase by 7.1%.<\/p>\n\n\n\n

For the financial market, these forecasts can set the basic macroeconomic backdrop for lending, assessing debt sustainability, and demand for banking products. For banks, the key factor remains the balance between economic growth, fiscal policy, and the quality of the loan portfolio.<\/p>\n\n\n\n

4. Interest Rates: Central Bank Allows for Loan Rate Cuts<\/p>\n\n\n\n

Loan rates in Armenia may decline if favorable inflation and geopolitical conditions persist, Central Bank of Armenia Chairman Martin Galstyan stated on Public Television (PTA) on June 23.<\/p>\n\n\n\n

He noted that the decline in Armenia’s country risk premium is already reflected in financial markets: the difference between the yields on Armenian and US government bonds has become significantly lower than it was a year or two ago. At the same time, Galstyan emphasized that the cost of loans depends not only on the level of risk but also on the cost of resources attracted by banks from depositors: banks currently pay an average of about 10% on dram deposits, while the average interest rate on consumer loans is around 17%, and on mortgages, around 13%. For banks, this could maintain the link between the value of the deposit base, lending rates, and margins, while for borrowers, rate reductions could depend on the reduction in the cost of attracted resources and the maintenance of stable inflationary and external conditions.<\/p>\n\n\n\n

5. Foreign Exchange Market: Dollar Little Changed, Euro and Ruble Declined<\/p>\n\n\n\n

According to the Central Bank, the dollar to Armenian dram exchange rate remained virtually unchanged over the week, from 368.07 drams on June 22 to 368.12 drams on June 26. The euro fell from 421.59 drams to 417.23 drams on June 24, after which it partially recovered to 419.84 drams. The ruble declined more sharply against the dram than the dollar and euro, from 4.9813 drams to 4.7383 drams.<\/p>\n\n\n\n

For financial institutions, such dynamics may continue to require daily monitoring of their currency positions and client transactions. For businesses, exchange rate parameters for import, export, and cross-border payments remain key.<\/p>\n\n\n\n

6. Payments and Social Policy: An additional 10 billion drams will be allocated for cashback for pensioners<\/p>\n\n\n\n

On June 24, the Armenian government decided to allocate an additional 10 billion drams from the 2026 state budget for a cashback program for pensioners making non-cash payments.<\/p>\n\n\n\n

Starting January 1, 2026, the cashback amount will be 20% of non-cash expenses, up to a maximum of 10,000 drams per month. From January to April 2026, the monthly growth in the number of program beneficiaries was 6.7%, and the average monthly growth in cashback per recipient from February to April was 3%.<\/p>\n\n\n\n

For banks and payment infrastructure, the program may retain its value as a tool for expanding non-cash transactions among socially vulnerable groups, and for the financial market, it may support the growth of transaction activity and the involvement of pensioners in digital payment services.<\/p>\n\n\n\n

7. Government Bond Market: International Investors Own 7-8% of Dram-Denominated Government Debt<\/p>\n\n\n\n

Armenian Central Bank Governor Martin Galstyan stated on Public Television on June 23 that global institutional investors own approximately 7-8% of Armenia’s dram-denominated government debt.<\/p>\n\n\n\n

According to him, the presence of international investors reflects their attention to the Armenian market, but also requires maintaining responsible macroeconomic policies. Galstyan also noted that Armenia’s government debt is less than 50% of GDP.<\/p>\n\n\n\n

For the capital market, this could mean an increased importance of dram-denominated government securities as an attractive instrument for foreign investors, as well as a stronger role for the domestic debt market in managing liquidity and investment portfolios.<\/p>\n\n\n\n

Weekly Summary<\/p>\n\n\n\n

The week saw the financial market adjust to current macroeconomic parameters. Debt sustainability, funding costs, deposit rates, international investor participation in dram-denominated government debt, and foreign exchange market dynamics remained the focus. At the same time, decisions regarding the cashback program demonstrated the continued role of cashless payments in social and financial policy.<\/p>\n","protected":false},"excerpt":{"rendered":"

The week in Armenia’s financial market was dominated by the debt agenda, Central Bank statements, currency dynamics, and decisions regarding non-cash payments.<\/p>\n","protected":false},"author":5,"featured_media":193304,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","tstyn_error":""},"categories":[12315,12139,9216],"tags":[15286,12297],"class_list":["post-275489","post","type-post","status-publish","format-standard","has-post-thumbnail","category-announces","category-economy-en","category-news","tag-economy","tag-market"],"acf":[],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t