{"id":133122,"date":"2021-04-22T12:12:50","date_gmt":"2021-04-22T12:12:50","guid":{"rendered":"https:\/\/armbanks.am\/2021\/04\/22\/249783\/"},"modified":"2024-12-15T13:44:05","modified_gmt":"2024-12-15T13:44:05","slug":"armenias-public-debt-gdp-ratio-comparable-with-developed-countries-finance-minister-says","status":"publish","type":"post","link":"https:\/\/armbanks.am\/en\/2021\/04\/22\/133122\/","title":{"rendered":"Armenia’s public debt\/GDP ratio comparable with developed countries, finance minister says"},"content":{"rendered":"\n

YEREVAN, April 22. \/ARKA\/. <\/strong>\u201cArmenia public debt in 2019 was below 50% of its GDP, but in\u00a0\u00a02020 it grew to\u00a0\u00a063.5%, exceeding the 60% threshold laid down in the fiscal rules,’ Finance Minister Atom Janjughazyan said a government meeting today.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

In this regard, he noted that the government’s medium-term spending program for 2022-2024 will provide for a set of measures to reduce the public debt\/GDP ratio.<\/p>\n\n\n\n

At the same time, the minister noted that Armenia’s current  public debt\/GDP ratio is almost comparable with developed countries.<\/p>\n\n\n\n

He also noted that in 2019 Armenia was experiencing a period of recovery when its economy grew by 7.6%, creating opportunities for revising the government’s spending program.<\/p>\n\n\n\n

\u201cIn 2019 our nominal tax revenues increased by 16%, and the ratio of taxes to GDP also increased by 1.4%. This enabled us to increase spending on education, health care, capital expenditures. And the deficit was brought to 1%,\u201d Janjughazyan said.<\/p>\n\n\n\n

According to him, it was this accumulated potential that made it possible to attract additional funds from the IMF and sale an issue of Eurobonds in 2020.<\/p>\n\n\n\n

Nevertheless, as the minister noted, the deficit turned out to be higher than expected growing from the projected 2.3% of GDP or AMD 161 billion to 5.5% of GDP or AMD 334 billion.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

Bookmakers HSBC, JP Morgan and Citigroup set guidance at 4.125%-4.5%. Final books were over $2.5bn.<\/p>\n\n\n\n

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-<\/p>\n","protected":false},"excerpt":{"rendered":"

\u201cArmenia 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,’ Finance Minister Atom Janjughazyan said a government meeting today.<\/p>\n","protected":false},"author":1,"featured_media":166950,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","tstyn_error":""},"categories":[12139,9216],"tags":[15837,12344,13790,12713],"class_list":{"0":"post-133122","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy-en","8":"category-news","9":"tag-armenia-2","10":"tag-gdp","11":"tag-public-debt","12":"tag-state-debt"},"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts\/133122","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/comments?post=133122"}],"version-history":[{"count":0,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts\/133122\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/media\/166950"}],"wp:attachment":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/media?parent=133122"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/categories?post=133122"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/tags?post=133122"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}