YEREVAN, October 6. /ARKA/. The share of Armenia’s state debt in gross domestic product will be 42 to 44 percent by the end of this year, Armenian Finance Minister Tigran Davtyan said Wednesday at a news conference.
He said this percentage doesn’t exceed 50% that is viewed dangerous. “The Armenian law allows us to increase it up to 60%,” the minister said.
He also said that negotiations with International Monetary Fund have already completed and resulted in restructuring of Armenia’s most complicated credit taken amid the crisis on quite tough terms.
In his words, the IMF improved the terms making them more favorable to Armenia.
The IMF prolonged the term from former five years to ten with a five-year grace period and no interests to be paid.
Armenia was actively attracting financial resources amid the crisis. Russia lent $500 million to Armenia in June 2009, International Monetary Fund pledged $822.7 million and the World Bank will transfer $545 million over the period between 2009 and 2012.
“We are also negotiating with other organizations over similar changes, but most important is that the scenario for serving the state debt is included in the mid-term spending program,” the finance minister said.
At the same time, he stressed that Armenia should be more cautious in borrowing additional money.
Armenia’s total debt amounted to AMD 1259 billion by late June.
Its domestic debt shrank 2.1% over the first half of this year to AMD 146.5 billion, and foreign debt amounted to $3027.4 million or AMD 1112.57 billion by June 30.
On September 30, the Armenian government approved the draft budget for 2011. According to it, the budget spending will come close to AMD 1 trillion, revenue is planned to total AMD 849.9 billion and deficit will amount to AMD 148.6 billion.
GDP growth is projected at 4.6%. ($1 = AMD 360.76).–0–
