YEREVAN, May 25. / ARKA /. According to Armenia’s chief treasurer Atom Janjughazyan, Armenia is still a country with low debt burden. Presenting today the report on the implementation of the country’s budget in 2014 he said Armenia’s foreign debt stood at about 1.8 trillion drams as of December 31, 2014 ($3.785.2 billion) or 39.7% of GDP, up from about 1.6 trillion drams ($3.899.1 billion) or 37% of GDP in late 2013.
The bulk of the debt – $3.345.3 billion was owed by the government and about $440 million by the Central Bank.
Janjughazyan said $266 million were spent last year to repay part of foreign debt and interests. Of that amount $162.7 million were the government’s obligations and $103.3 million were the obligations of the Central Bank. The ratio of external debt service to exports was 8.1% against 14.5% in 2013, while the ratio to the budget revenues was 9.7% vs. 15.5% in 2013.
Under Armenia’s national law, the ratio of debt to GDP is considered critical when it is 60%. Janjughazyan said although Armenia’s public debt to GDP ratio is much lower than that of many European countries that does not mean that the country should attract actively foreign loans.
According to him, the level of public debt was affected by the weakening of the national currency at the end of 2014, pushing it up, “but even against that background, public debt figures decreased compared to the previous year.”-0-
