Foreign Holdings of Deposits in Armenia on the Rise

CEIC Macro Watch - February 28, 2014 - The end of 2013 was marked by a huge increase in non-resident deposit holdings in Armenia. On a monthly basis the deposits of foreigners increased by 28.6%, reaching AMD 463.6 billion. The total amount of deposits of residents and non-residents grew by almost 10% compared to the previous month and reached AMD 1,612.4 billion in December 2013. The massive increase in deposit holdings, especially those of non-residents, can be explained by the growing confidence of investors in Armenian government bond issues. The yield of bonds with maturity of more than six years dropped to 11.6% in December 2013 from 15.6% in the previous month. In September 2013 the Armenian government issued its first USD denominated Eurobonds at the total value of USD 700 million, with a maturity of seven years. Falling government bond yields are likely to result in lower market rates, especially on local currency deposits in 2014. By Petar Chavdarov Google+ Author Profile - CEIC Analyst Discuss this post and many other topics in our LinkedIn Group (you must be a LinkedIn member to participate). Request a Free Trial Subscription. Back to Blog
3rd March 2014 Foreign Holdings of Deposits in Armenia on the Rise

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