Wednesday, April 12 2017 21:01
Naira Badalian

IMF estimated Armenian foreign debt as  being at acceptable level recommending to improve corruption struggle and business environemnt

IMF estimated Armenian foreign debt as  being at acceptable level recommending to improve corruption struggle and business environemnt

ArmInfo. According to IMF estimates, Armenian foreign debt is at a pretty high level, though it is acceptable yet. This was stated on April 12  to journalists by  Hossein Samiei, the IMF Armenia mission head.

According to the remarks of IMF mission head., already in 2017 Armenian Government had implemented numerous budget corrections to reduce the budget deficit. Besides, to settle the level of foreign debt, Armenia  had to reject some projects and decrease the level of capital expenditures, implemented based on external funding, because those would  impact positively the economy growth, but only for short term period.

Hossein Samiei said to have received positive indications about Karen Karapetyan's government, including specifically the changes made to the tax and customs spheres in terms of reducing the shadow and improving fiscal administration. The Head of the IMF mission said that a more effective fight against the black economy implies continued efforts toward expanding the tax network. Following the mission head, IMF supports also the decision of Armenia authorities to modify the fiscal rule stating that the foreign debt of the country should not exceed the mark of  50% GDP. " Fiscal rules are called to provide economic growth  within difficult period and to secure the acceptable foreign debt level at the same time, " he clarified.

"We also attach importance to attracting foreign direct investment, and we are pleased that such measures are already being implemented by your government. We met with the representatives of the Center for Strategic Initiatives and were pleased to see that active steps are being taken to improve the business environment and attract new investment," Hussein Samiei said.

According to Samiei, the Central bank should be ready for softening the terms of monetary policy, because that will conform to the limits of inflation planned. At the same time, taking into consideration the growth of global economic activities and higher speed of inflation, IMF thinks that financial regulator should be extremely careful while softening the monetary policy terms.

To remind, on December 9 the Executive Board  of the International Monetary Fund (IMF) completed the fourth review  of Armenia's performance under a three-year arrangement under the  Extended Fund Facility (EFF), the official website of IMF reports.  The completion enables the release of SDR 15.65 million (about US$21.24 million), bringing total disbursements under the arrangement  to SDR 66.52 million (about US$90.28 million). The extended  arrangement for SDR 82.21 million (about US$111.57 million) was approved on March 7, 2014.

In completing the review, the Executive Board also approved the  authorities' request for a modification of the end-December 2016  fiscal balance performance criterion. The revenue shortfall has been  mainly due to exogenous factors, and the higher capital expenditure,  which is externally financed at concessional terms, in large part  reflects a catch-up of past under-execution and provides some  counter-cyclical support.

To recall,  by the results of  2016, the public debt of Armenia totaled $5.9bln, in 2017 it will  become $6.250bln. According to the Minister, in the structure of the  total debt, the state debt is $5.4bln, and the Central Bank debt will  amount nearly $503mln. The ratio of public debt to GDP in 2016 was  54.5%. As Vardan Aramyan informed, in 2017, in case of providing the  budget rates, the amount of public debt of Armenia is forecasted to  be on the level of $6.250bln, including the CB debt, which is  expected to be $530mln.  

POST A COMMENT
Input digits     


News
Armenian interbank foreign exchange market: dollar transactions increased from May 12 to May 16, 2025Armenian interbank foreign exchange market: dollar transactions increased from May 12 to May 16, 2025
Vahe Davtyan: Armenia being marginalized from the emerging  architecture of regional energy transitVahe Davtyan: Armenia being marginalized from the emerging  architecture of regional energy transit
Vahe Hovhannisyan meets with  EIB Vice President, Egypt`s Minister of  International Cooperation, and representatives from JP Morgan and  Bank of America in LondonVahe Hovhannisyan meets with  EIB Vice President, Egypt`s Minister of  International Cooperation, and representatives from JP Morgan and  Bank of America in London
Head of Anti-Counterfeit: We must not allow illegal traders to use  Georgia as a hub for counterfeit goods or a convenient route for   transportationHead of Anti-Counterfeit: We must not allow illegal traders to use  Georgia as a hub for counterfeit goods or a convenient route for   transportation
AraratBank: From a Future Student to a LeaderAraratBank: From a Future Student to a Leader
Event Ticketing Platform Eventhub is now Available in MyAmeria AppEvent Ticketing Platform Eventhub is now Available in MyAmeria App
RA Finance Minister of Finance meets with EBRD  President  in LondonRA Finance Minister of Finance meets with EBRD  President  in London
25% idcoin when buying tickets from all airlines. IDBank25% idcoin when buying tickets from all airlines. IDBank
The majority of transfers to Armenia come from Russia, and flow out  to Switzerland, the UAE and the USAThe majority of transfers to Armenia come from Russia, and flow out  to Switzerland, the UAE and the USA
ZCMC to be the first in Armenia to present a report on biodiversity  managementZCMC to be the first in Armenia to present a report on biodiversity  management
Armenian market  unable to provide personnel for modern competitive  businesses, especially in  mining sectorArmenian market  unable to provide personnel for modern competitive  businesses, especially in  mining sector
Converse Bank and EBRD sign two loan facilities totaling US$ 8 million to support MSMEs and green projectsConverse Bank and EBRD sign two loan facilities totaling US$ 8 million to support MSMEs and green projects
Armenia Featured in Wizz Air’s Special Magazine EditionArmenia Featured in Wizz Air’s Special Magazine Edition
Import customs duty for goods supplied to Armenia from Iran to be reduced to 4.5% Import customs duty for goods supplied to Armenia from Iran to be reduced to 4.5% 
Armenia`s authorities plan to enhance military industry`s potential Armenia`s authorities plan to enhance military industry`s potential 
Armenian government expanding agricultural machinery leasing support  programArmenian government expanding agricultural machinery leasing support  program
Armenia extends repayment term for ADB loan for improvement of  Armenia-Georgia border highwayArmenia extends repayment term for ADB loan for improvement of  Armenia-Georgia border highway
Armenia`s Cabinet declines Capital Markets International Data`s application for Ecos fee operators list Armenia`s Cabinet declines Capital Markets International Data`s application for Ecos fee operators list 
Inecobank to receive $15mln under EBRD `green agenda` Inecobank to receive $15mln under EBRD `green agenda` 
`Solar pathos` turning into source of Armenia`s `energy insecurity` - expert `Solar pathos` turning into source of Armenia`s `energy insecurity` - expert 
EU to mobilize EUR 2.36bln under economic investment plan for Armenia  - diplomat EU to mobilize EUR 2.36bln under economic investment plan for Armenia  - diplomat 
Evocabank to receive EUR 19.4 million financial package from EBRD to  support MSMEs and large enterprises in ArmeniaEvocabank to receive EUR 19.4 million financial package from EBRD to  support MSMEs and large enterprises in Armenia
EBRD expands cooperation with Ameriabank - EUR 50 million Risk Sharing  Framework agreement signedEBRD expands cooperation with Ameriabank - EUR 50 million Risk Sharing  Framework agreement signed
PSRC Head: Installed capacity of solar power plants in Armenia  projected to reach 557 MW in the coming yearsPSRC Head: Installed capacity of solar power plants in Armenia  projected to reach 557 MW in the coming years
Ambassador: Russia offering Armenia a wide range of nuclear power  unitsAmbassador: Russia offering Armenia a wide range of nuclear power  units
ENA`s investment program  for 2025  aims to modernize most worn-out  and vulnerable substationsENA`s investment program  for 2025  aims to modernize most worn-out  and vulnerable substations
PSRC Head: Electricity tariffs to remain unchanged in 2025PSRC Head: Electricity tariffs to remain unchanged in 2025
NPP CEO: Proposals for  new NPP model to be presented in 2026NPP CEO: Proposals for  new NPP model to be presented in 2026
Armenian Deputy PM, Iranian Ambassador discuss bilateral cooperation  agendaArmenian Deputy PM, Iranian Ambassador discuss bilateral cooperation  agenda
Armenian insurance market started to reduce compensationArmenian insurance market started to reduce compensation
Armenia`s SRC delegation attends  fifth meeting of the Subcommittee  on Customs Issues under SEPAArmenia`s SRC delegation attends  fifth meeting of the Subcommittee  on Customs Issues under SEPA
Armenian NPP to be shut down for preventive maintenanceArmenian NPP to be shut down for preventive maintenance
FLYONE ARMENIA offers tickets to Salonica from EUR 19 FLYONE ARMENIA offers tickets to Salonica from EUR 19 
Armenia may try on role of Armenia may try on role of "junction zone" of Eurasian and European  economic spaces - expert 
Number of jobs up in all sectors of Armenia`s economy - minister Number of jobs up in all sectors of Armenia`s economy - minister 
The state  to compensate 40% of farmers` costs for  installing  anti-hail nets in all communities of ArmeniaThe state  to compensate 40% of farmers` costs for  installing  anti-hail nets in all communities of Armenia
One of the most common fraud schemes is phone calls: how to protect yourselfOne of the most common fraud schemes is phone calls: how to protect yourself
Papoyan comments on the situation regarding Armenian cargo in  Georgia: There is an issue, and I think our businessmen are rightPapoyan comments on the situation regarding Armenian cargo in  Georgia: There is an issue, and I think our businessmen are right
Georgian side promises to clarify situation with Armenian cargo  downtime within two daysGeorgian side promises to clarify situation with Armenian cargo  downtime within two days
Victims of financial fraud gather in front of Armenian CB, demand  return of stolen money Victims of financial fraud gather in front of Armenian CB, demand  return of stolen money 
Net profit of Armenia`s insurance sector reaches $2.1mln in 1st  quarter of 2025 Net profit of Armenia`s insurance sector reaches $2.1mln in 1st  quarter of 2025 
Armenia`s minister of territorial administration, UNICEF rep discuss disaster risk reduction Armenia`s minister of territorial administration, UNICEF rep discuss disaster risk reduction 
Armenia on verge of economic crisis - MPArmenia on verge of economic crisis - MP
Armenia  to tighten rules for manufacturers and importers of tobacco  products and their substitutesArmenia  to tighten rules for manufacturers and importers of tobacco  products and their substitutes
Majority of transactions in Armenian regions involve land salesMajority of transactions in Armenian regions involve land sales
Hooverphonic`s Yerevan debut, sponsored by AraratBank, for the Philharmonic Orchestra`s 100th AnniversaryHooverphonic`s Yerevan debut, sponsored by AraratBank, for the Philharmonic Orchestra`s 100th Anniversary
Re-exporting and re-importing of diamonds and gold haven`t been successful, resulting in a decline in Armenia`s foreign trade turnoverRe-exporting and re-importing of diamonds and gold haven`t been successful, resulting in a decline in Armenia`s foreign trade turnover
Apartment prices in Yerevan rose by 1.5% in a year, with a  corresponding 8.7%  increase in transactions Apartment prices in Yerevan rose by 1.5% in a year, with a  corresponding 8.7%  increase in transactions 
Armenia`s state debt  reached $13.6 billion, with specific debt  burden per capita exceeding $4.4 thousandArmenia`s state debt  reached $13.6 billion, with specific debt  burden per capita exceeding $4.4 thousand
Armenia`s Ministry of Economy submits investments bill to public Armenia`s Ministry of Economy submits investments bill to public 
Government textile industry fund to be established in Armenia Government textile industry fund to be established in Armenia 
Ameriabank passes second stage service quality improvement programme  - Aneta KorobkinaAmeriabank passes second stage service quality improvement programme  - Aneta Korobkina
USD transactions down, RUB ones up in Armenia`s interbank foreign exchange market, May 5 to 8, 2025 USD transactions down, RUB ones up in Armenia`s interbank foreign exchange market, May 5 to 8, 2025 
In Q1 2025, Armenia`s IT sector experienced 24.5% annual growth rateIn Q1 2025, Armenia`s IT sector experienced 24.5% annual growth rate
In Armenia, service sector experienced accelerated growthIn Armenia, service sector experienced accelerated growth
Free economic zone to be established in Yeghipatrush Free economic zone to be established in Yeghipatrush 
RA MESCS presents terms of participation in industry courses in IndiaRA MESCS presents terms of participation in industry courses in India
"Electric Networks of Armenia" to modernize power supply network in  center of Yerevan
“My Ameria, My Family” – Lots of Benefits, Raffle of 300+ Gifts and Much More“My Ameria, My Family” – Lots of Benefits, Raffle of 300+ Gifts and Much More
Launch of digital radio discussed in ArmeniaLaunch of digital radio discussed in Armenia
Read more
Exchange rates
16.05.2025
RUB4.78-0.03
USD386.33-0.61
EUR432.69-0.61
GBP513.51-0.66
CAD276.800.14
JPY26.550.04
CNY53.62-0.06
CHF461.73-0.07