YEREVAN, July 31. /ARKA/. Vardan Aramyan, the former Minister of Finance of Armenia, stated that the key conditions for improving Armenia's sovereign rating are a predictable business environment, protection of property rights, and consistent fiscal and structural reforms:
"Without this, there will be no growth in foreign direct investments, especially in large manufacturing sectors," he said:
According to Aramyan, public messages 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 perceived as politically motivated become a negative signal for the entire investment community, especially if the company's activities are effectively suspended until a final court decision is made:
"Investors need protection of property rights, predictable rules, and equal competitive conditions. Combined with consistent fiscal and structural reforms, this will increase the likelihood of improving the rating," the ex-minister stated:
At the same time, Aramyan identified factors that could lead to a downgrade of Armenia's rating outlook from "positive" to "stable." These include further deterioration of the investment environment, expansion of external and fiscal imbalances, as well as a significant escalation of the security situation:
Fitch Ratings recently affirmed Armenia's long-term sovereign rating at "BB-" with a "positive" outlook. The agency noted the growth of international reserves, stable economic dynamics, and a decrease in short-term risks of military escalation while pointing out external and internal factors of uncertainty:
The full interview can be read here:
