Dept Market In Armenia Shows 4-Fold Growth For May 2009

DEPT MARKET IN ARMENIA SHOWS 4-FOLD GROWTH FOR MAY 2009

ArmInfo
2009-06-01 15:29:00

ArmInfo. Since the national dram devaluation shock in March, the debt
market of Armenia has gradually recovered. Over May 2009, corporate
bonds transactions grew almost 4 times to 1.1 billion drams. Last
month the market suffered 5-fold decline.

By data of NASDAQ OMX Armenia, 62 transactions involving the bonds
of 10 issuers were registered in May. IMEX GROUP was the leader both
by the volume and quantity of operations: 17 transactions for 193.4
million drams. ELITE GROUP bonds transactions proved in the last
position: 1 transaction for 599.7 thousand drams.

Tim Slater, HSBC Bank Armenia CEO, told ArmInfo the upward trends
in the dept market in Armenia were connected with certain growth of
interest rates.

T. Slater brought another important factor i.e. reduction of interest
rate on REPO-agreements by 1% by the Central Bank of Armenia. This
factor may boost trading and lead to growth of corporate bonds
transactions, he said.

Nevertheless, he said, new issues were the key factor defining the
activity in the market. T. Slater said HSBC Bank Armenia is not
planning a second issue of bonds for the nearest future. He said
the Bank will study this issue as the population trust in national
currency is regained.

By the latest data of NASDAQ OMX Armenia, corporate bonds of
11 emitters are quoted at the exchange at present : ARARATBANK
(second-issue bonds), Converse Bank, HSBC Bank Armenia, INECOBANK,
ELITE GROUP (first- and second-issue bonds), IMEX GROUP, ArmRusgasprom,
SHEN CONCERN (fourth-issue bonds), Tornton, Valletta (second- and
third-issue bonds), Ardshininvestbank.