ArmInfo.In the near future, a capital market development strategy will be submitted for approval by the Armenian government. On June 8, Minister of Economy of the Republic of Armenia Tigran Khachatryan stated this at a hearing in parliamentary commissions on a preliminary report on the implementation of the state budget of 2019.
According to him, the strategy includes four main components - the issuer, investor, organized market (exchange) and legislative regulation. The Minister emphasized that the main discussions on the strategy have already been completed. They were held with the participation of the Deputy Prime Minister and Chairman of the Central Bank. The strategy, according to Tigran Khachatryan, is designed to become a kind of action program for the development of the securities market in Armenia.
Recall that, by agreement with the International Monetary Fund (IMF), the Central Bank at the end of March 2020 was to complete work on a capital market development strategy. Obviously, for the development of the Armenian economy at this stage, it is more important to promote the circulation of securities, which are considered as investment instruments, namely bonds and shares.
The latest IMF report on Armenia (No. 19/397 of December 30, 2019) indicates that the strategy being developed should be supplemented by the recommendations of all responsible institutions with a revision of the relevant legal, managerial and tax components. Close coordination between the Central Bank and the Ministry of Finance is also needed on these issues. It is noted that these two structures have already done a great job, in particular, to eliminate adverse tax conditions for foreign investors.
It should be noted that the underdevelopment of the organized securities market of Armenia in the past year has become one of the main arguments of the WB to reduce the position of Armenia in the Doing Business rating. After that, Prime Minister Nikol Pashinyan instructed the Ministry of Economy to seriously address this issue.
