ArmInfo. The Armenian bond market will become more active due to the increase in the number of issuers and tranches. "Even in the banking system of Armenia, the potential has not been fully utilized," the representative of the NasDaq OMX Armenia stock exchange, Karen Zakaryan, said in an interview with ArmInfo correspondent.
"We have quite a large deposit base in our country and not many banks have yet entered the market with their debt securities. But I'm sure they are already tuning in to this. Not all banks are active, some require more time to implement such an initiative, "he said. If a significant part of the deposits is converted into bonds, according to K. Zakaryan, banks will be able to form long-term liquidity, which is impossible to achieve when working with deposits. "If the issuing bank raised funds from the stock market for 2 years, then it can dispose of them throughout this period, and in the case of deposits, it is possible to withdraw these amounts from the client," he explained. According to him, from the point of view of the investment instrument, the bank papers are substantially liquid and profitable, since with the premature termination of the deposit agreement, the investor may lose interest, and in the case of bonds, it is out of the question," K. Zakarian noted.
Regarding the situation with prevailing in the market of bank bonds of dollar securities, the expert noted that this situation depends on the level of dollarization of the economy and the ratio of currency and drama components in the deposit portfolio. "If the situation changes in favor of the national currency, then, naturally, the market will react adequately," he stressed.
Earlier, the director of the IC "Armenbrok" Aram Kaifajan said that the number of issuers from 7 (17 tranches) in 2015 increased to the current 12 (38 tranches each). Transactions on bonds in 2015 were committed at $ 3.5 million, and today this figure has increased to $ 20 million.
To note, in total on Nasdaq OMX Armenia as of October 12, 2017 23 dollar tranches of bonds of 10 issuers are quoted, of which 19 issues are issued by 7 banks: Araratbank (5), Ameriabank (4), Armswissbank (4 ), Anelik Bank (3), and one dollar tranche from Armbusinessbank, Converse Bank and Unibank.