ArmInfo. The draft program of the government of Armenia for the upcoming five-year plan envisages the creation of capital market mechanisms.As stated in the draft government program, private investment in assets is an important prerequisite for the country's sustainable development.
The means of production must be constantly updated. Domestic and foreign investment will be of great importance in the provision of the required volume of services. Accordingly, mechanisms should be developed that will stimulate an increase in domestic savings and the creation of alternative investment opportunities. Special attention will be paid to the development of mechanisms to protect foreign investment.It is noted that the development of the local capital market is one of these opportunities. Citizens should be able to diversify their savings by purchasing bonds or shares of non-financial organizations and, thus, make profitable investments. Encouragement of the expansion of alternative financial instruments (for example, through the development of investment funds) will also be carried out by encouraging the financing of programs by non-financial sector organizations through an initial public offering (IPO).
It is necessary to create attractive conditions for attracting foreign capital to Armenia. The government will act in several ways to achieve the above goals. In particular, it is necessary to create an environment in which the use of corporate assets will provide higher returns.In terms of attracting large-scale investment, it will be important to attract foreign investment in infrastructure projects through public-private partnerships. On the one hand, this is a great opportunity for the development of the capital market and attracting foreign investment, and on the other hand, thanks to an improved infrastructure, it is possible to significantly increase the amount of free resources from the market.In the meantime, bank lending continues to be the most influential tool for the development of the Armenian economy.
According to the program, the reduction of barriers to bank lending should be the next important issue of cooperation between the government and the Central Bank of Armenia. The government will provide guarantees for the private sector, which can significantly reduce financial risks and increase the availability of credit resources of the private sector, including through lower interest rates, the program says.