Former Finance Minister Outlines Conditions for Armenia’s Sovereign Rating Upgrade
YEREVAN, July 31 – The formation of a predictable business environment, the protection of property rights, and the implementation of consistent fiscal and structural reforms are crucial conditions for upgrading Armenia’s sovereign credit rating. This was stated by former Armenian Finance Minister Vardan Aramyan in an exclusive interview with ARKA news agency.
“Without this, there will be no increase in foreign direct investment, especially in large manufacturing sectors,” he said.
According to Aramyan, public reports about possible political or administrative pressure on large private companies, regardless of the legal assessment of specific cases, negatively affect investor confidence.
He noted that actions against large businesses that are perceived as politically motivated become a negative signal for the entire investment community, especially if a company’s operations are effectively suspended before a final court decision is made.
“Investors need protection of property rights, predictable rules of the game, and equal conditions for competition. Combined with consistent fiscal and structural reforms, this will increase the likelihood of a rating improvement,” the former minister stated.
At the same time, Aramyan pointed out factors that could lead to Armenia’s rating outlook returning from “positive” to “stable.” These include further deterioration of the investment environment, external and fiscal imbalances, as well as a significant escalation of the security situation.
Fitch Ratings recently affirmed Armenia’s long-term sovereign credit rating at “BB-” with a “positive” outlook. The agency cited an increase in international reserves, stable economic dynamics, and a reduction in short-term military escalation risks, while also pointing to factors of external and internal uncertainty.
The full interview is available via the provided link.
Factors for Sovereign Rating Upgrade:
- Predictable Business Environment
- Protection of Property Rights
- Consistent Fiscal and Structural Reforms
- Equal Conditions for Competition
Potential Risks to Rating Outlook:
- Deterioration of Investment Environment
- External and Fiscal Imbalances
- Significant Escalation of Security Situation
Fitch Ratings’ recent assessment highlighted the growth of international reserves and stable economic dynamics as positive indicators, but also acknowledged external and internal uncertainties.
