ARMENIAN CENTRAL BANK NOT GOING TO APPROVE LAW ON ISSUE OF CORPORATE BONDS IN FREE CURRENCY TO BOOST TURNOVER OF ARMENIAN DRAM
ArmInfo
2009-08-24 19:40:00
ArmInfo. Armenian Central Bank is not going to approve a law on issue
of corporate bonds in free currency to boost turnover of the Armenian
dram, HSBC Bank Armenia CEO Tim Slater told ArmInfo. He says the
Armenian CB policy is aimed to boost dram turnover whereas issue of
bonds in dollars would increase dollarization of the Armenian economy.
As regards the situation in the corporate bonds market in Armenia,
T. Slater is sure that passivity in the market will continue in
the short-term outlook. Investors have hold hand because of the
significant decline of the Armenian economy and prefer postponing their
investments. The banks are not able to evaluate the creditability of
emitters, Slater explains.
Despite expectations of professional participants of the debenture
market predicting its sooner activation, market behavior resulted in
reduction of stock exchange transactions on corporate bonds for over
9 times to 161.9 mln drams in July 2009. A total of 54 transactions
were made in July at NASDAQ OMX Armenia versus 66 transactions in June.
Bonds of 11 emitters are quoted at NASDAQ OMX Armenia including 5
commercial banks of Armenia. Nominal coupon inconvertible bonds of
HSBC Bank Armenia for 1 billion drams, 9% annual yield and 365-days
maturity were issued on December 16 2008. The bonds have been listed
in Bbond category since Feb 2 2009. A total of 89 transactions for
1.2 billion drams have been made on these bonds by present.