Thursday, June 30 2011 19:19
Armenian Finance Minister: Armenia's government debt in 2011 to make up 41.3% of GDP
ArmInfo. The foreign government debt of Armenia in 2011 will make up 1.597 trln AMD or 41.3% of GDP, in 2013 it will drop to 39.5% of GDP, and in 2014 it will fall to 38%, Armenian Finance Minister Vache Gabrielyan told journalists on Thursday.
According to him, these indices are included in the strategy of government debt management for 2012-2014 approved by the government on Thursday. The minister said that since 2010 the government and international structures have been analyzing the debt stability. The minister pointed out that at present Armenia's government debt approaches 44-45% of GDP.
The percentage ratio depends on the exchange rate fluctuations, as the debt is mostly formed at the expense of foreign sources, however, it will unlikely exceed 50%, said Gabrielyan.
"Our government debt meets the 40-50% range. I think that the debt is not problematic and it is controllable", he said.
Gabrielyan added that according to the law on debt, the maximum debt is to be 60%, and this requirement meets the best world experience. In case the debt exceeds this index, the budget deficit should be reduced and a number of other measures should also be taken, he added. "Only in this case the debt may influence the country's economy", he said.
The minister said that most part of the debt is formed due to the credit programs aimed at development of the country's economy, for instance, the Russian stabilization loan and the credits of the German KfW bank.
According to Gabrielyan, as of late 2010 Armenia's government debt amounted to about $4 bln, including $500 mln internal debt in AMD equivalent, and $3.5 bln foreign debt.
To note, according to IMF's forecast, by late 2011 the level of the total government debt in GDP will make up 45.6%, in 2012 - 40.0%, in 2013 - 40.1%, and in 2014 the government debt will drop to 33.5% of GDP.
