World Bank does not think that Armenia`s public debt has reached critical level

ArmInfo.The World Bank does not think Armenia's public level has reached a critical level, WB Country Manager for Armenia, Ms. Laura E. Bailey said in response to ArmInfo's questions about the negative consequences of the accumulated public debt for the country.

In her words, Armenia has accumulated such a sustainable public debt to resist external shocks. Ms. Bailey said the WB tries to focus on the implementation of the already launched projects maximum efficiently and economically rather than on new borrowings. In her words, Armenia has faced rather complicated challenges. In this light, the WB representative thinks it is necessary to increase investments in infrastructure projects able to stimulate economic development and control the public debt level.

By official data, Armenia's foreign debt that totaled $1 billion 577.1 million in 2008 will reach $4.8-$4.9 billion by the end of 2015. According to the draft budget 2016, the state debt will amount to $5.5 billion or 49.9% of GDP in 2016 versus 48.3% in 2015.  According to the forecasts of the International Monetary Fund, by 2020, the foreign debt of Armenia will reach 62%.