Reverse link with Clearstream Banking SA to increase demand for Armenia’s public debt

15.03.2016 16:47
Reverse link with Clearstream Banking SA to increase demand for Armenia’s public debt

YEREVAN, March 15. /ARKA/. Reverse link with Clearstream Banking SA, which will start operating in Armenia in 2016, will increase demand for Armenia’s public debt, Konstantin Saroyan, head of NASDAQ OMX Armenia stock exchange, said in an interview with ARKA News Agency.

In January 2014, the Central Depository launched a link (opened nominal holder's accounts) on a unilateral basis, through which foreign securities have become available at Armenian market.

Establishment of ties with Clearstream Deutsche Börse Group enables Armenian investors to make investments in securities at 53 markets in developed and developing countries.

Saroyan said that Clearstream Banking SA has officially announced the launch of a reverse link, which will start operating in Armenia in 2016.

The launch of the link, he said, will allow foreign institutional investors to buy government bonds without opening accounts in Armenia.

“This will significantly increase demand for Armenia's public debt, and this will drive interest rates on government bonds down,” he said. “This is very important for economy as a whole. We have been working with Clearstream over several years.”

Clearstream Banking S.A. based in Luxembourg and Frankfurt provides post-trade infrastructure and securities services in Europe and internationally.

According to NASDAQ OMX Armenia, transactions with government bonds totaled more than AMD 12 billion in 2015 against AMD 33.5 billion in 2014.

Yield of short-term government bonds is fluctuating between 10 and 12 percent. That of midterm government bonds stands between 14 and 15% and long-term bonds between 15 and 16.5%.

The National Statistical Service says Armenia's domestic debt amounted to AMD 368.3 billion in 2015 (18.2% growth), of which government bonds bought by Armenia's residents amounted to AMD 320 billion and government bonds in foreign currencies to AMD 47.3 billion. ($1 – AMD 489.11). --0----


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