YEREVAN, October 3. / ARKA /. Armenia will no longer receive preferential loans from international financial institutions, Finance Minister David Sargsyan told a press conference on Thursday.
He explained that Armenia has been removed from the category of poor countries and placed in the category of countries with middle income. ‘This means Armenia will no longer receive preferential loans from the International Monetary Fund, the World Bank or other international organizations," the minister said.
According to him, this is why Armenia has begun to seek for other sources of funding and this was the reason why it issued first-ever Eurobonds.
The Eurobonds were sold on international markets on September 19 at a relatively high yield of at least 6 percent, reflecting Armenia’s “junk” credit ratings assigned by agencies like Moody’s and Fitch and rasing a total of $700 million. The Armenian finance ministry described the sale as a huge success, saying that investors were ready to buy as much as $3 billion worth of Armenian external bonds. The underwriters are Deutsche Bank AG, HSBC Bank plc and JPMorgan Securities plc.
He said the issue of Eurobonds is expected also diversify the country's foreign debt.
"The interest rates at international financial markets are very low now. As the global economy is exiting the crisis the interest rates may start to rise. Therefore, many developing countries have decided to issue bonds now, not next year," he added. .-0-