Tweet
WB COUNTRY MANAGER FOR ARMENIA SAYS PROCEEDS FROM SECOND ISSUE OF EUROBONDS SHOULD BE USED TO STIMULATE ECONOMY
YEREVAN, March 31. / ARKA /. Proceeds raised from the second issue of
Eurobonds should be used to stimulate the economy, World Bank country
manager for Armenia Laura Bailey said today.
She said the World Bank believes it is very important that the proceeds
be used to stimulate economic activity in the country and assist the
most vulnerable segments of the population in the next two years.
She noted that the buildup of external debt is important in terms of
its ratio to GDP and to where the resources will be directed to.
According to Ms. Bailey, the best way to use the resources is to
boost production capacities and incomes and get out of the current
difficult economic situation.
According to official data, Armenia raised $487.84 million from the
second issue of Eurobonds after selling a $500 million 10-year dollar
bond for only the second time on record on March 19, paying a yield
of 7.5%. International law firm Cleary Gottlieb Steen & Hamilton
LLC was hired by the Armenian government to act as an international
consultant for the issue, while Deutsche Bank, HSBC Bank and JP Morgan
acted as underwriters.
Some $205.8 million of the proceeds were used to buy back previous
dollar bond issue carried out in 2013. Also about 40 billion drams
will be used to finance Armenia's budget deficit and "neutralize"
the Russian recession's spillover effects on the Armenian economy.
According to deputy finance minister Pavel Safaryan, the remaining
money will be channeled into the Stabilization Fund to enable the
government to maintain fiscal stability and to fully finance its
spending items.
Armenia first issued $700 million worth dollar-denominated bonds in
September 2013 at the yield of 6.25 percent. According to Armenian
finance ministry, investors were ready to buy as much as $3 billion
worth of Armenian external bonds.
The bulk of $700 million was used to repay a $500 million Russian
loan ten years ahead of schedule. ($1 - 471.21 drams). --0--
http://arka.am/en/news/economy/wb_country_manager_for_armenia_says_proceeds_from_ second_issue_of_eurobonds_should_be_used_to_stimul/#sthash.7tNvIOH1.dpuf
YEREVAN, March 31. / ARKA /. Proceeds raised from the second issue of
Eurobonds should be used to stimulate the economy, World Bank country
manager for Armenia Laura Bailey said today.
She said the World Bank believes it is very important that the proceeds
be used to stimulate economic activity in the country and assist the
most vulnerable segments of the population in the next two years.
She noted that the buildup of external debt is important in terms of
its ratio to GDP and to where the resources will be directed to.
According to Ms. Bailey, the best way to use the resources is to
boost production capacities and incomes and get out of the current
difficult economic situation.
According to official data, Armenia raised $487.84 million from the
second issue of Eurobonds after selling a $500 million 10-year dollar
bond for only the second time on record on March 19, paying a yield
of 7.5%. International law firm Cleary Gottlieb Steen & Hamilton
LLC was hired by the Armenian government to act as an international
consultant for the issue, while Deutsche Bank, HSBC Bank and JP Morgan
acted as underwriters.
Some $205.8 million of the proceeds were used to buy back previous
dollar bond issue carried out in 2013. Also about 40 billion drams
will be used to finance Armenia's budget deficit and "neutralize"
the Russian recession's spillover effects on the Armenian economy.
According to deputy finance minister Pavel Safaryan, the remaining
money will be channeled into the Stabilization Fund to enable the
government to maintain fiscal stability and to fully finance its
spending items.
Armenia first issued $700 million worth dollar-denominated bonds in
September 2013 at the yield of 6.25 percent. According to Armenian
finance ministry, investors were ready to buy as much as $3 billion
worth of Armenian external bonds.
The bulk of $700 million was used to repay a $500 million Russian
loan ten years ahead of schedule. ($1 - 471.21 drams). --0--
http://arka.am/en/news/economy/wb_country_manager_for_armenia_says_proceeds_from_ second_issue_of_eurobonds_should_be_used_to_stimul/#sthash.7tNvIOH1.dpuf