YEREVAN, July 14. /ARKA/. Stress tests show that Armenia will not have problems with serving the public debt if dram devalues up to 20%, “168” newspaper reports referring to Deputy Finance Minister Vardan Aramyan.
According to the latest data of end-2011, the public debt rose by 177.5 billion drams in 2011 from a year earlier. As a result of dram devaluation the public debt jumped by 80 billion drams.
However, Aramyan said the official strategy has already considered the potential currency risks.
Some risks related to the change of exchange rates, indeed exist, however, the stress tests showed that there will be no problems in serving the public debt if Armenian dram doesn’t devalues more than 20%.
He also added that in a long-term perspective dram devaluation may result in climb of Armenian export ensuring economic growth and increase in tax revenues.
Armenian national currency devalued against the U.S. dollar by 26.6 points or 6.8% (from 392.06 to 418.66 drams) from early May to July 4. The highest devaluation was reported on July 4 ( 418.66 drams per $1). –0–
