ArmInfo. In the last 4 years, the volume of dram debt in the general context of the state debt has increased from 20% to 46%. Head of Public Debt Management Department of the Ministry of Finance of Armenia Samvel Khanvelyan stated during a plenary session on the topic "Investment Climate in Armenia and Prospects for the Development of the Capital Markets" within the framework of the first Investment and Financial Forum.
He noted that in general, the volume of government bond issues has increased significantly in recent years, which is based on the government's strategy, which involves targeting the domestic debt market as the main source of financing the state budget.
Referring to the results of a study conducted jointly with the IMF and the World Bank in 2023, he noted that Armenia's domestic debt market is quite developed in terms of legal regulation and infrastructure, but is "limping" in the secondary market and in terms of the investment base and structure. At the same time, Khanvelyan drew attention to the fact that in recent years, positive dynamics can be observed in the context of the investment structure. In particular, according to him, in 2020 the banking system covered 80% of the domestic debt market, and according to data for 2023, their coverage decreased to 65%. He noted that this is due to the growing participation of insurance, investment companies, and pension funds.
At the same time, the representative of the Ministry of Finance pointed out changes in the field of institutional high-grade non-resident investors. According to him, their portfolio covers 7% of domestic debt or 150 billion drams. "This is also a positive sign in the context of improving the investment base and structure," Khanvelyan noted.
He also noted that an improved online retail trading system for government bonds will soon be launched, which will provide an opportunity for resident and non-resident individuals to purchase securities directly from the state. In this regard, he attached importance to the active participation of the Diaspora. The Financial and Investment Forum is being organized by Freedom Broker Armenia in collaboration with the Ministry of Economy of Armenia. The Forum intends to become a leading platform for interaction between key market participants, including government authorities, business representatives, the media and the public.
