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FITCH OUTLOOK ON ARMENIA SIGNALS TWO SCENARIOS - ECONOMIST
20:42 * 03.02.15
http://www.tert.am/en/news/2015/02/03/manukyan/1578551
The downgrading of Armenia's long-term foreign and local currency
Issuer Default Ratings (IDRs) by Fitch prompts two possible scenarios,
an economist has said, warning of imminent risks.
Speaking to Tert.am, Artak Manukyan said he expects the outlook to
cause a surge in the prices of loans issued to the country.
"European and American financial organizations will give Armenia loans
at a more expensive price, but one agency's evaluation alone is not
the end of the story. One doesn't have to be a great fortune-teller
to see that other agencies too, will revise the rate," he explained.
The second problem, the economist said, is that Armenia will become
less attractive to foreign investors.
"This is an indirect signal to the importers that making investments
in Armenia has become risky. So investors will adopt a more cautious
approach to Armenia, reducing the investments, which are low as it is,"
he noted.
20:42 * 03.02.15
http://www.tert.am/en/news/2015/02/03/manukyan/1578551
The downgrading of Armenia's long-term foreign and local currency
Issuer Default Ratings (IDRs) by Fitch prompts two possible scenarios,
an economist has said, warning of imminent risks.
Speaking to Tert.am, Artak Manukyan said he expects the outlook to
cause a surge in the prices of loans issued to the country.
"European and American financial organizations will give Armenia loans
at a more expensive price, but one agency's evaluation alone is not
the end of the story. One doesn't have to be a great fortune-teller
to see that other agencies too, will revise the rate," he explained.
The second problem, the economist said, is that Armenia will become
less attractive to foreign investors.
"This is an indirect signal to the importers that making investments
in Armenia has become risky. So investors will adopt a more cautious
approach to Armenia, reducing the investments, which are low as it is,"
he noted.