YEREVAN, June 30. /ARKA/. Armenia’s total debt is not problematic, Armenian Finance Minister Vache Gabrielyan told journalists on Thursday after a Cabinet session in Vayots Dzor province.
“Cooperating with international organizations and using their methodology since 2010, we are analyzing stability of our state debt,” he said. “Our debt ranges between 40 and 45 percent of GDP, depending on foreign exchange rates, since this debt has been formed from outside sources. I don’t find this indicator awful and uncontrollable and the debt so large and problematic.”
The minister said that under the law, if the country’s debt is beyond 50%, the government budget deficit must be cut, and the next year’s deficit must not exceed 3% of GDP.
“We have no such a problem – we even have room for enlarging the debt without jeopardizing stability,” he said.
However, it doesn’t mean that there is no necessity to pay attention to effective management.
Gabrielyan said that now Armenia’s total debt amounts to $4 billion, of which $3.5 billion is foreign debt, and the remaining $500 million is domestic debt.
“The state debt will total AMD 1.597 trillion, which will make up 41.3% of GDP in 2011, later it will constitute 41.1% of GDP, and after that it will start reducing – to 39.5% in 2013 and then to 38%,” he said.
National Statistical Service of Armenia says the country’s total debt amounted to AMD 1.436 trillion in late March. Domestic debt amounted to AMD 185.4 billion, and foreign debt AMD 1250.5 billion or $3.39 billion.
Analysis of dynamics of Armenia’s debt shows that it grew 4.1% in drams, compared with late December 2010. ($1 = AMD 368.86).–0–
