ArmInfo.The Eurasian Development Bank (EDB), the rating agency ACRA and the Ministry of Finance of the Republic of Armenia signed a Memorandum of Understanding establishing areas of cooperation between the parties in order to stimulate economic growth in the Republic of Armenia and the Russian Federation. This is stated in the message of the EDB press center.
"The EDB intends to allocate a grant from the Technical Assistance Fund (TCF) on an irrevocable basis, through which ACRA will carry out actions to assign a sovereign rating to the Republic of Armenia. This will stimulate the development of relations within the Eurasian Economic Union and with other EDB member countries, and will open access to rating services of ACRA to companies-residents of the Republic of Armenia interested in entering the Russian financial market, "said Nikolay Podguzov, Chairman of the EDB Management Board. It should be noted that rating actions on Armenia will be carried out by ACRA for the first time.
N. Podguzov also explained that the FCS was created to facilitate the activities of the Bank and its potential clients. Thus, the Fund's resources, formed from the net profit of the EDB, can cover the costs of pre-project preparation, subsidize the interest rate on loans issued by the EDB, and ensure the expansion of investment activities in general. The Memorandum, among other things, provides for the creation of conditions for increasing the availability of rating services and expanding the rating coverage of companies-residents of the financial market of Armenia, which in turn will contribute to the accessibility of capital markets of neighboring countries. A separate area of partnership will be cooperation in the field of sustainable development in the Republic of Armenia, including through the use of green financing instruments.
To note, in March 2021 Fitch affirmed Armenia's rating at "B +" with a "Stable" outlook. Moody's in September 2021 confirmed Armenia's sovereign rating at "Ba3", leaving the forecast stable. To recall, the Eurasian Development Bank (EDB) is an international financial institution carrying out investment activities in the Eurasian space. For 15 years, the EDB has been promoting the strengthening and expansion of economic ties and the comprehensive development of the participating countries: Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan. The authorized capital of the EDB is US $ 7 billion. The main share in the EDB's portfolio is occupied by projects with an integration effect in the areas of transport infrastructure, digital systems, green energy, agriculture, industry and mechanical engineering. In its activities, the Bank is guided by the UN Sustainable Development Goals and ESG principles.