Thursday, 3 October 2013
Proceeds of Placement of Government Bonds May Be Used In Several Ways
The proceeds of placement of Armenia government bonds to the amount of USD700mn will be used in a number of ways. In particular, they will be used to repay the debt under the Russian loan of USD500mn. This is what Finance Minister David Sargsyan told the news conference, which was held today at the Government Press Center (GPC) following the Cabinet meeting.
The transaction is supposed to help considerably improve the quality of the Armenian government’s external debt portfolio. In particular, it will help reduce the risks arising from the loan provided with a floating interest rate.
David Sargsyan also said that under international criteria Armenia is no longer part of the group of poor countries, and has moved into the group of middle income countries.
According to the Minister, this means that our country will henceforth get fewer loans on preferential terms from the international financial institutions. “This means that for the next 3-5 years Armenia will not receive preferential financing and should seek resources on the international markets,” David Sargsyan concluded.
