Armenian Eurobonds 5th tranche offering a yield of 7.1%, indicates   that foreign investors perceive Armenia as a high-risk investment -  David Ananyan

ArmInfo. The issuance of $750 million in Eurobonds by Armenia  in March 2025 with an interest rate of 7.1%  indicates that foreign investors perceive the risk associated with the RA to be quite high.

Usually the high yield on Eurobonds reflects  the market's perception of a country's political and economic  instability, as well as its low creditworthiness  or structural  imbalances in the economy. This viewpoint was shared by David  Ananyan, former chairman of the State Revenue Committee of Armenia  and director of DSA Consulting Group CJSC, who holds a PhD in  Economics. the opportunities for accumulating domestic  debt (or assessing them as insufficient), was forced to offer foreign  investors such compensation for the risks involved.

An aggressive debt burden coupled with weak fiscal discipline (in  2024, state budget tax revenues were fell short by over 7.5% compared  to planned revenues, and the declared fiscal consolidation was not  put into practice) will obviously lead to a faster increase in debt  than economic growth>, Ananyan wrote on social media. The expert  believes that if current borrowings are used to repay old debts,  rather than investing in infrastructure, education, technology or  other growth factors, then the debt will not have a , leading to the economy being unable to generate sufficient  income in the future to service the new debt burden.

In reality, Armenia has found itself in a difficult situation, as   public debt (both external and internal) is growing amidst   (not real) economic growth, budget imbalances and declining tax  revenues. In such conditions, Ananyan believes that improving fiscal  policy and reducing dependence on external borrowing are considered  unrealistic and ineffective. ,  the former head of the State  Revenue Committee concluded.