Thursday, 3 October 2013
International Transaction Enhances Armenia’s Standing
A regular Cabinet sitting was held today, chaired by Prime Minister Tigran Sargsyan.
The Government amended the 2013 State budget law and one of its previous decisions so that the State budget could reflect the foreign currency-denominated funds available from the placement of government bonds and the ways of their use. Carried out on September 19, 2013, the first placement of government bonds to the amount of USD700mn has returned a total amount of USD690.2mn.
The receipts will be used in several areas, such as the early repayment of the Russian loan of USD500mn in order to improve the Government’s external debt portfolio, curb the treasury bonds-operated budget deficit financing program, implement crediting-investing projects and so on.
To organize the first issue of foreign currency-denominated government bonds on behalf of the Republic of Armenia, the Ministry of Finance concluded a number of agreements for the purchase of relevant services, undertaking to pay out a total amount equivalent to USD1.773mn. The Government decided that the latter sum should be settled using the savings available after the payment external interest as specified in the 2013 State budget law.
Summing up the theme of the bond issue, Prime Minister Tigran Sargsyan stated in part, “Some of our opponents are trying to put in question and discredit this process. Therefore, I feel bound to give a public explanation. First of all, we have hired one of the world’s most prominent consulting companies who helped us make this process comply with the best international standards in terms of publicity and organization. They also helped us to abide by the best line of conduct in the process of Eurobonds issue. Second, the placement was carried out by 3 well-known companies, namely the Deutsche Bank, GP Morgan, HSBC, which are undisputable authorities in these markets. Thirdly, the placement came at the best moment for market transactions. Fourthly, due to this placement we were able to improve our balance of payments, cash flows, as well as strengthen our position ahead of the 2013-2014 budget exercise since, as the Minister of Finance reported, we will make savings and our actions will contribute to the reduction in interest rates.”
The Ministry of Education and Science was provided around AMD8mn to organize a Teacher Day-dedicated gala event. Note that Teacher Day celebrations feature on the list of UN international days. It is marked in over 100 countries of the world.
The Government Staff of the Republic of Armenia was allocated AMD12.6mn to encourage the winners of “Best Educator” and “Best Teacher” contests with Chevrolet Aveo motorcars.
