YEREVAN, April 9. /ARKA/. The recent Eurobond issue has created a buffer zone for the government in Armenia amid uncertainty over economic growth and state funds, the head of IMF mission in Armenia Mark Horton told reporters on Wednesday.

Armenia sold a $500 million 10-year dollar bond on March 19 for only the second time on record, paying a yield of 7.5%. Deutsche Bank, HSBC Bank and JP Morgan acted as underwriters.

Horton said it was a timely issue, bearing in mind some statements by the US Federal Reserve Bank and the European Central Bank.

Horton said the government used part of the proceeds to repay some of its debts from the previous bond issue, having eased the debt loan for future.

According to the head of the mission, rates could be lower, yet they are within the current market trends.

Most importantly, the government created certain guarantees for itself amid uncertainty over economic growth and state financing, Horton said.

Armenia received $487.84 million from the second Eurobond issue. Of that amount, about $205.8 million was spent to buy back part of the previous dollar bond issue carried out in 2013. Apart from this, some 40 billion drams will be used to cover the 2015 budget deficit.

Armenia first issued $700 million worth dollar-denominated bonds in September 2013 at the yield of 6 percent. ($1 – 474.99 drams).  -0-