Banks’ investments make up 80% of total amount in Armenia – finance ministry

18.04.2017 17:40
Banks’ investments make up 80% of total amount in Armenia – finance ministry

YEREVAN, April 18. /ARKA/. Around 80% of investments in securities in Armenia are banks’ investments, and this is not so good, Arshaluys Margaryan, chief of the Armenian finance ministry’s division in charge of public debt management, told journalists on Friday.

According to the central bank, residents’ investments in securities in Armenia totaled AMD 499.7 billion in late February 2017.

Banks’ aggregate investments amounted to AMD 402 billion, non-banking investors’ AMD 73.1 billion and the central bank’s AMD 24.5 billion. Nonresidents’ investments in securities amounted to AMD 7.9 billion in late February.

Margaryan said that the degree of domestic debt risk may be gauged on different parameters. “For example, dominance of commercial banks in the domestic debt with 70 to 80 percent can be placed on record, and this is not a good factor,” he said.

He also said that the bulk of the government bonds in banks’ investment portfolio are long-term, and the fact that government bonds in banks’ balance are in assets shows that Armenia’s banks need to attract more deposits.

Margaryan said in this context that it is necessary to attract a greater number of individuals as investors in government bonds, and therefore it is necessary to enhance confidence in these bonds.

He added that the new bond electronic purchase system, which is being introduced now, will make it possible to increase the number of individual investors.

According to the finance ministry, Armenia’s domestic public debt amounts to $1 168.6 million (up by $20.4 million).

Government bonds in Armenia amounted to AMD 511.7 billion by late March. ($1 – AMD 486.09). ---0---


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Tags: , , Новости Армении АМИ Новости-Армения

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