Foreign Investment in Armenia - Returns Since 1997

Ever wondered how much Armenia's largest investors have profited in the past decade? What about foreign investors? This article gives us a glimpse in the ultra-secret world of investing in Armenia.

In 1999, 50% of the company was purchased by Canadian Global Gold Mining Company for $3 million (WB data). In the same year, the latter sold its stake to First Dynasty Mines Ltd (Canada) for approximately $22.1 million.

It is 7 times return on investment.

In December 2004, it [Zangezour Copper Molybdenum combine] was privatized to consortium of companies for $132 million. The major one is Cronimet (German) which purchased 75% controlling skate.

By using data of State Tax Service of paid taxes for year 2005 and I semi-annual period of 2006, internal rate of return is about 84% annually.

Frighteningly amazing, isn't it? Of course, these are only estimates and of course many were conducted with extralegal means.

Hetq's article does a great job of explaining the methodology of the numbers, as well as painting a probably accurate picture of how these huge sums are made in our little country.

Armenia Issues Savings Bonds

Here's the scoop:

The Ministry of Finance and Economy of Armenia will issue on January 16 state savings coupon bonds with 7% bond-equivalent yield per year.

...the volume of the bonds will make 100mln AMD.

The bonds will be available for purchase only for natural persons and only in the centers of the Treasury of the Armenian Ministry of Finance and Economy. The term for free sale of the bonds is established till April 6 of 2007 inclusive. The coupon payments will be realized quarterly. The retirement of bonds will take place on July 16 of 2007. On January 16 the bonds will be sold at the price of the face-value, afterwards - with an extra charge to the face-value.

AMD 100,000,000 is about $270,000. It will serve as a great introduction to bonds, investing, and hopefully increase faith in important institutions.

Source: Mediamax