ArmInfo. Armenian Finance Minister Vardan Aramyan disproves the whispers on state debt restructuring, which has been stated by him at a press-conference.
According to Minister's clarifications, the necessity of state debt restructuring rises in a result of incapability of the borrowing country to pay own financial liabilities in conformance to initial terms of loan allocation. This tool is also implemented in the case of problematic liquidity. "taking into consideration the toolset and the possibilities Armenia is having nowadays in respect both to the debt maintenance and to the liquidity, as well as the fact that our Republic is considered as a country with lower debt liabilities, there is no logic in talking about the debt restructuring," Aramyan stated. As Minister mentioned, some facts of internal emissions within the purpose of straightening cash flows could be wrongly accepted as a signal for possible restructuring.
Meanwhile, following the words of Arshalujs Margaryan, the Finance Ministry State Debt Management Department Head, as per of October 31 the state debt formed USD 5 bln 607 mln. In the structure of the state debt the governmental part forms USD 5 bln 108 mln, USD 4 bln 45 mln of which is the external debt, and USD 1 bln 63 mln is internal. The Central bank debt is USD 499 mln, USD 148 of whch is the government guaranteed loans part. In 2020 for the repayment and maintenance of the debt about USD 921 mln will be drawn, USD 164 mln of which should be allocated for the interes rates payments. Following Aramyan's clarifications, the repayment will not become a heavy load for the budget, because the amount od USD 500 mln is expected to be repaid with the Eurobond emission too. Anyway, according to the Finance Ministry statements, there are many loans yet to be borrowed and repaid until theb year of 2020.
To remind, according to the statement of new Finance Minister Vardan Aramyan made at the press- conference on October 4, the external debt of Armenia is expected to increase by the end of 2016 from 43.7% up to 54.5% of GDP. According to Aramyan, only in 2014-2016 the external debt f Armenia rised for USD 900 mln. To note, according to International Monetary Fund data, in 2017 Armenia expects to get USD 327 mln borrowed assets, and to pay out USD 107 mln. In 2020 the loan assets will form USD 803 mln, and USD 660 mln will be paid out.