Armenia to introduce convertible loans to attract investments

ArmInfo. The RA Ministry of Economy is suggesting amendments to the RA Civil Code, as well as the  laws on limited liability companies and  joint-stock companies, defining the concept of a convertible loan agreement and the main conditions for its application, taking into account the business relations established both globally and in Armenia.

 Gevorg Papoyan, the head of the department, made this statement while presenting the  bill at the February 26 session of the NA Standing Committee on  Economic Issues.

As Papoyan stated, convertible bond agreements (Convertible Note) are  a popular investment instrument worldwide, through used by companies  to raise financing.  , the Minister emphasized, adding that investments through  convertible debt are usually made in startups and early stage  companies.  According to him, although the convertible loan  instrument is widely used internationally, there are legislative  obstacles to its application in Armenia, as well as a lack of  necessary structures for its implementation.  The Minister assured  that the initiative is aimed at solving the afore-mentioned problems,  comprehensive regulation of the convertible loan agreement, etc.