YEREVAN, February 26. /ARKA/. If the ratio of Armenia’s public debt to GDP exceeds 50%, it will not become critically dangerous, economist Vardan Bostanjyan told a news conference today.
The ratio of Armenia’s public debt to GDP in 2015 reached 47.8% from 43.6% in 2014. The 2016 budget expects the country’s public debt to make 49.4% of GDP. The ratio of external debt to GDP in 2016 will amount to 42.8% from 42.3% in 2015.
According to Bostanjyan, the danger does not lie in the amount of external debt- it is in how effective the borrowed funds are utilized.
Armenia’s overall public debt amounted to $5.071 billion in late 2015 December, growing by 14% or $629.5 million from the previous year, according to the National Statistical Service (NSS).
The country’s external debt stood at $4.309.5 billion, having increased by 13.8% from 2014 and by 6% from 2015 November. Of external debt some $3.833.2 billion were owed by the government (up by 14.5% and 7.1% respectively) and another $476.3 million were owed by the Central Bank (up 8.2% and down 1.36% respectively).
The domestic debt in the end of December stood at $761.4 million, having increased by 16% from the year before and by 1.3% from 2015 November.
According to 2016 budget, the country’s public debt is expected to make 49.4% of GDP, up from 48.3% in 2015. -0-
