Fri, 4 April
13.1 C
Yerevan
USD: 391.32 RUB: 4.67 EUR: 432.53 GEL: 141.78 GBP: 514.27
spot_img

In 2021, Armenia’s public debt/GDP ratio will be over 60% threshold- central bank

YEREVAN, May 4. /ARKA/. In 2021, the ratio of public debt to GDP will be exceeding the threshold of 60%, said Chairman of the Central Bank of Armenia Martin Galstyan to ARKA news agency on Tuesday.

Earlier, Minister of Finance Atom Janjughazyan said Armenia public debt in 2019 was below 50% of its GDP, but in 2020 it grew to 63.5%, exceeding the 60% threshold laid down in the fiscal rules.

He added that the government needs to adopt a policy that will help bring the indicator down below 60%, which in terms of risks is relatively manageable.

“There is a budget rule to take advantage of the exceptional case opportunity. We believe that there is no need for a sharp reduction in budget expenditures in terms of reducing the deficit. This process should be carried out slowly, since from the point of view of fiscal consolidation this may have a negative impact on the economy,” Galstyan said at a press conference on Tuesday.

Galstyan also noted that the budget rule provides for mechanisms which the government need to use to return to the predicted mid-term trajectory.

According to the Eurasian Development Bank, Armenia’s public debt increased by 13.9% in 2020 to 67.3% of GDP from 53.5% in 2019. n 2020, Armenia borrowed $300 million from IMF. At the beginning of 2021, almost 75% of government debt was in foreign currency.

Earlier this year Armenia sold a $750mn 10-year Eurobond. The 3.6%-coupon February 2031 bond was priced at 97.738 to yield 3.875%, or 280.2bp over mid-swaps.

Bookmakers HSBC, JP Morgan and Citigroup set guidance at 4.125%-4.5%. Final books were over $2.5bn.

According to the National Statistical Committee, Armenia’s total public debt as of January 31, 2021 stood at $8,024.878 billion, an increase of $56.391 million from to December 31, 2020. -0-

spot_img

POPULAR

Insurance market of Armenia is in embryonic state

Insurance market of Armenia is in embryonic state

Ranking of Armenia’s most profitable banks in 2024

ARKA news agency has released a ranking of the most profitable commercial banks in Armenia in 2024.

Top 10 banks of Armenia by loan portfolio for 1st H 2020

ARKA News Agency has singled out ten banks for their big loan portfolios as of June 30, 2020

Arka news agency’s ranking of most profitable Armenian banks in 2019

In 2019, Armenia-based commercial banks earned a total of 78.8 billion drams in net profit, up from 56.4 billion drams they had earned in 2018, according to ARKA news agency's ranking of the most profitable commercial banks in the fourth quarter of 2019

LATEST NEWS

spot_imgspot_imgspot_img