ArmInfo. Central Bank of Armenia has reacted to the statement made by first President of Armenia Levon Ter-Petrosyan, according to which the country may face real economic collapse, this time called default.
The statement spread by the CBA particularly reads. "Central Bank of Armenia as an established professional structure during its operation has been refraining from assessing non professional and non grounded information, disseminated in society and mass media and this policy has not changed. Considering that today Levon Ter-Petrosyan has publicly expressed his concern related to economic condition in Armenia and forecasted 'default' we want to answer to this concern by way of exception. Default in this case means non-fulfillment or late performance of debt obligations by the state. Armenia has been fulfilling and continues to meet its obligations without any problems and there are no upcoming risks, which will make the country incapable to service all or part of its obligations".
Moreover, the CBA statement reads that there are a number of indicators, which testify to Armenia's enough financial solvency in future, such as stability of debt and foreign currency markets, improvement of balance of payments, sufficient level of international reserves, as well as growth of amount of state bonds turnover on internal and external markets and significant reduction of interest rates.
To note earlier first President of Armenia Levon Ter-Petrosyan stated that Armenia may face economic collapse in the nearest future. "While the ruling regime is busy with theater ceremonies of reforming electoral and government systems, which are obviously aimed at strengthening and retaining the running power rather than at recovering the state, the country may face economic collapse called default", Ter- Petrosyan noted.
According to the data of Armenian Finance Ministry by the end of 2016, the foreign debt of Armenia will grow from 43.7% to 54.4% of GDP, Finance Minister Vardan Aramyan told journalists on October 4. In his words, the foreign debt increased by $900million in 2014-2016. By the end of the year, the government's debt will reach $4.4billion drams, Central Bank's debt will grow to $532million. As a result, the summary foreign state debt will make up about $5billion. The internal debt, the minister said, will reach $934million. "The total state debt will reach $5.9billion by the end of the year," Aramyan said. The foreign debt to GDP ratio will make up about 49%, the total debt to GDP ratio - 54.4%.