Armenia Can Now Attract Debt Instruments at Lower Interest Rates, Tunyan

Babken Tunyan, a member of the National Assembly from the My Step faction and chair of the Standing Committee on Economic Issues, wrote: “What does it mean that Moody's has improved Armenia's sovereign rating? It means that the rating upgrade from Moody's or Fitch international rating agencies is not just a reason for celebration. It implies that Armenia is considered a more creditworthy or less risky country. Similar to how a bank perceives a loan applicant as less risky. This means Armenia can attract debt instruments at lower interest rates. And that means we will pay less interest on the debt we incur. With the 'saved' money, we can build several kindergartens or schools, extend a few kilometers of road, or raise pensions. It also implies that interest rates within Armenia could indirectly decrease as well.

Note: I would like to remind you that for the first time since 2006, the Moody's international rating agency has upgraded the sovereign rating of the Republic of Armenia in foreign and national currency by one level, from B1 to Ba3.