Armenian government to cut external debt by 2 percent
30.10.2017,
18:59
The government of Armenia plans to cut the country’s external debt by 2% in 2018, finance minister Vardan Aramyan said today during a discussion on the draft budget for 2018 in the parliamentary commissions.
YEREVAN, October 30. /ARKA/. The government of Armenia plans to cut the country’s external debt by 2% in 2018, finance minister Vardan Aramyan said today during a discussion on the draft budget for 2018 in the parliamentary commissions.
"The ratio of state debt to GDP is expected to fall from 43% to 41% by the end of 2018, while the risky figure is 48%," Aramyan said, stressing that Armenia continues to be a country with a low debt burden.
He said the debt was accumulated in 2009 and in 2014-2015 as a result of economic shocks. According to him, the government’s draft budget allows to reduce the government’s debt by 1% in relation to GDP.
"The growth of the national debt can not be stopped instantaneously, but we will follow the path of slowing its growth, but steps in this direction must be carried out cautiously taking into account the possible influence of exchange rate fluctuations," Aramyan said, adding that the situation is predictable and one should not expect surprises.
According to the National Statistical Service, Armenia’s external state debt at the end of July 2017 stood at $4.985 billion, having increased by $42.7 million from the previous month. About $4.417.5 billion of that amount was owed by the government (an increase of $35.1 million); the Central Bank's debt was $567.4 million (an increase of $ 7.6 million).
Armenia's domestic debt at the end of July stood at $1.216.6 billion, an increase of $18 million. Some $1.081.9 billion were owed to resident holders of government bonds, $125.6 million were owed to holders of government bonds in foreign currency and $9 million were owed as government guarantees. The government expects that by yearend the overall public debt will amount to $6.245 billion, up from $5.849 billion in late 2016). -0---
"The ratio of state debt to GDP is expected to fall from 43% to 41% by the end of 2018, while the risky figure is 48%," Aramyan said, stressing that Armenia continues to be a country with a low debt burden.
He said the debt was accumulated in 2009 and in 2014-2015 as a result of economic shocks. According to him, the government’s draft budget allows to reduce the government’s debt by 1% in relation to GDP.
"The growth of the national debt can not be stopped instantaneously, but we will follow the path of slowing its growth, but steps in this direction must be carried out cautiously taking into account the possible influence of exchange rate fluctuations," Aramyan said, adding that the situation is predictable and one should not expect surprises.
According to the National Statistical Service, Armenia’s external state debt at the end of July 2017 stood at $4.985 billion, having increased by $42.7 million from the previous month. About $4.417.5 billion of that amount was owed by the government (an increase of $35.1 million); the Central Bank's debt was $567.4 million (an increase of $ 7.6 million).
Armenia's domestic debt at the end of July stood at $1.216.6 billion, an increase of $18 million. Some $1.081.9 billion were owed to resident holders of government bonds, $125.6 million were owed to holders of government bonds in foreign currency and $9 million were owed as government guarantees. The government expects that by yearend the overall public debt will amount to $6.245 billion, up from $5.849 billion in late 2016). -0---
