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ARMENIA TO PAY OFF RUSSIAN DEBT WITH EUROBOND PROCEEDS
Agence France Presse
October 3, 2013 Thursday 2:51 PM GMT
YEREVAN, Oct 03 2013
Armenia said on Thursday it will use proceeds from its first eurobond
issue to pay off a debt owed Russia ahead of schedule.
The small ex-Soviet Caucasus nation earned $700 million from its
eurobond issue last month, marking an important step in efforts to
win foreign investor confidence.
A eurobond is a bond issued in a currency other than the one of the
country in which it is issued. It is often used to provide traders
an added incentive to invest in countries perceived as too risky.
Finance Minister David Sargsyan told a government meeting that most
of the funds generated would go toward paying back some $440 million
(325 million euros) leant by Russia in June 2009, at the height of
the financial crisis.
The Russian loan had been scheduled over 15 years but the government
would pay it off now, Sargsyan said.
Armenia recently caused consternation in Brussels after it announced
that it would join a Russian-led customs union, thereby ending years
of negotiations on a free trade agreement with the European Union.
mkh-del/zak/arp
Agence France Presse
October 3, 2013 Thursday 2:51 PM GMT
YEREVAN, Oct 03 2013
Armenia said on Thursday it will use proceeds from its first eurobond
issue to pay off a debt owed Russia ahead of schedule.
The small ex-Soviet Caucasus nation earned $700 million from its
eurobond issue last month, marking an important step in efforts to
win foreign investor confidence.
A eurobond is a bond issued in a currency other than the one of the
country in which it is issued. It is often used to provide traders
an added incentive to invest in countries perceived as too risky.
Finance Minister David Sargsyan told a government meeting that most
of the funds generated would go toward paying back some $440 million
(325 million euros) leant by Russia in June 2009, at the height of
the financial crisis.
The Russian loan had been scheduled over 15 years but the government
would pay it off now, Sargsyan said.
Armenia recently caused consternation in Brussels after it announced
that it would join a Russian-led customs union, thereby ending years
of negotiations on a free trade agreement with the European Union.
mkh-del/zak/arp