Wednesday, August 29 2018 15:06

ArmInfo. The world practice knew  many examples of early repayment of external public debt. Another  question, as far as it is justified today for Armenia, is to talk  about the full repayment of the national debt, if the country  continues to plan a deficit budget. ArmInfo correspondent was told in  the Department of State Debt Management of the Ministry of Finance of  Armenia.

In particular, according to the head of the department Arshaluys  Margaryan, Armenia already has the experience of early repayment of a  certain part of the loan. Then, on September 19, 2013, the first  issue of Eurobonds was made: Eurobonds were issued for $ 700 million  with a maturity of 7 years until March 30, 2020. They government  ahead of schedule repaid the loan from Russia for a budget of $ 500  million.

At the same time, Head of the Department of Public Debt Management,  Head of the Accounting and Servicing Department of the Ministry of  Finance Artak Marutyan, provided that Armenia has the opportunity to  repay its obligations ahead of schedule, since the bulk of about 150  credit programs that generated a total external debt of $ 7 billion,  does not provide for fines and penalties. And, if there is a desire,  and most importantly the opportunity, then it is necessary to analyze  which of the "expensive" loans is more expedient to repay in the  first place.

Nevertheless, according to experts, with these $ 7 billion, perhaps  the best solution, will be their investment in the country's economy.  "Is it reasonable to repay the" cheap debt "today, and then to  recruit new ones, attracting more" expensive "loans?" - asked Artak  Marutyan. As noted by Arshaluys Margaryan, Armenia, which is planning  a deficit budget, at least in the near future, it is more correct to  take the path of reducing the amount of attracted funds.

As for the talks about the forgiveness of Armenia's external public  debt by international creditors, according to the head of the  Department, they are fraught with a significant reputational risk for  the Republic of Armenia. "Armenia is quite an authoritative country  in the international financial markets, including from the point of  view that it is timely and fully fulfilling its debt obligations." In  this context, the request for forgiveness of debt may negatively  affect the level of Armenia's sovereign rating, "- Arshaluys  Margaryan said.

With the coming to power of a new Cabinet, the topic of repaying the  external public debt was the number one topic. Many experts and  "amateurs" began to express an opinion that if you shake up the  oligarchs - tax deviators or corrupt official officials - you can  raise the necessary amount to repay the entire state debt of Armenia.  A number of citizens, encouraged by the kind attitude of the creditor  countries and donors to the velvet revolution, also expressed the  hope that the international financial structures can forgive Armenia  a debt whose size is "not so significant" for them.

Armenia's state debt by the end of 2017 reached $ 6,744.6 million,  recording an annual growth of approximately $ 832 million by July 31  this year public debt rose to $ 6,759 million of which the government  debt was $ 6,128 billion, the Central Bank - $ 577 million. As of the  end of July, 81.1% of government debt in foreign currency. The  creditors of Armenia's national debt are the International  Development Association (IDA), part of the World Bank Group - 27.5%  of the national debt, the International Bank for Reconstruction and  Development - 16.3%, the Asian Development Bank - 16.1%, the Eurasian  Development Bank - 7.7% %, European Investment Bank - 2.9%,  International Monetary Fund - 2.2%, EU - 1.9%, International Fund for  Rural Development - 1.6%. The International Fund for Development of  OPEC - 1.4% and the European Bank for Reconstruction and Development  - 0.6%.  Among the creditor countries, Russia is leading - 6.8%,  Japan - 5.9% and Germany - 4%, France - 3.2%, while China and the US  lent to Armenia at 0.6% and 0.5% respectively.