YEREVAN, December 12. / ARKA /. Armenian ministry of finance said today it will gradually reduce the yields on government bonds in national currency to ensure their proportionality with the yield on bonds in foreign currency.

On September 19  the first Armenian  Eurobonds were sold on international markets  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 netting the government $700 million. The underwriters were  Deutsche Bank AG, London Branch, HSBC Bank plc and JPMorgan Securities plc.

The ministry said the decision was made in view of international experience that there should not be a significant difference between yields in local and foreign currencies.

According to Armenian Central Bank, the yield on short-term government bonds in Armenian national currency is about 9% , that on mid-term bonds is 13,7 %, and  15.6% on long-term bonds.

Thanks to some steps the ministry has reduced the yield on bonds with 3 year maturity in national currency to 10.16% from 14.28 % a year earlier .

The yield on long-term government bond placed  December 12 was 11.63 % from  16.43 % at the beginning of the year, it said. M.M.-0-