Yerevan /Mediamax/. A brief report on state budget implementation for January-July, prepared by the Minister of Finance of Armenia, was the only notable event in the financial market last week.

Mediamax was informed on this in “Renesa” Investment Company, which noted that the statement of the Minister may form a positive background of expectations both in the financial system and in the entire economy in general, taking into account the factor of confidence of economy entities for the government.

“Renesa” specialists noted that according to September program of governmental bonds’ issuers, issues with the total volume of placement making 14bln AMD are planned for, which in its turn provides for analogous liquidity withdrawal from the economy.

“We believe that due to large-scale pouring of financial means (mainly from external sources) within the framework of crisis prevention measures of the government, there will be no reasons for concern”, the company notes, referring to the statement of the Minister of Finance, according to whom the government will direct to the economy 185bln AMD from the Russian stabilization loan and there are already decisions made on placing 120bln out of the given sum, and 38.6bln AMD have already reached their addressees.

Two auctions on placing short-term (with the repayment term of 13 weeks) and medium-term (with the repayment term of 5 years) of governmental bonds will take place this week, concerning which “Renesa” expects high demand and further reduction of interest rates without significant declines.

According to the assessment of the Investment Company, during short-term governmental bonds placement, the demand will exceed the offer 2.5-3 times, reaching 5-6bln AMD, and the average interest rate will be within the range of 5.2-5.2%. During the placement of medium-term governmental bonds, the demand may exceed the offer 1.5-2 times, making 3-4bln AMD, and the yield will be within the range of 10.2-10.3%.