Wednesday, July 19 2017 15:29
Naira Badalian

Armenian Finance Ministry boosts builds domestic debt

Armenian Finance Ministry boosts builds domestic debt

ArmInfo. Armenian Finance Ministry  is aimed at increasing domestic debt. "Starting from this moment, we  will increase domestic debt at a faster rate, which by the end of  2015 amounted to 14.4% of the total debt, and by the end of 2016  increased to 19.3%," the head of Directorate for Management told  ArmInfo. State debt of RA Ministry of Finance Arshaluys Margaryan  stated. 

In this regard, the budget deficit of 150.1 billion AMD in 2017 will  be financed by almost 48 billion by issuing government bonds. "In any  case, the increase in the share of domestic debt is preferable to the  external one, since it provides incomes for the residents of the  country and the budget, which, on the whole, have a multiplier effect  in the economy," Arshaluys Margaryan stressed. 

At the same time, Finance Ministry does not forget that by the end of  2016 Armenia's total state debt in foreign currency amounted to 80.7%  of the total debt. According to all the stress tests of Ministry of  Finance, from the point of view of managing the national debt, the  depreciation of the Armenian AMD to 30% does not create risks.  However, to stay in a comfortable zone, Margaryan believes, it is  better for Armenia to keep its debt in the national currency, since  "anywhere in the world there was no default due to domestic debt."  "According to the most diverse economic studies, the developing  countries have quite a high potential of the domestic market, the  savings of the citizens of Armenia probably exceed the national debt  of the country. Our task is to create an atmosphere of confidence in  the Government of the country and economic policy and then these  savings will become an unlimited source of increasing the domestic  market of state Loan commitments, "he said.

Total amount of Government loans from individuals is 2.5 billion  rubles and although this is only a meager share of Armenia's national  debt, according to Margaryan, this is just the beginning. Since April  25, for individuals, the Ministry of Finance has launched an Internet  platform for transactions on government bonds gp.minfin.am. The main  mission of the project is to increase people's confidence in the  state and to help individuals who wish to invest their money safely  and effectively.

As of today, yield of a bond with a maturity of up to 6 months is  10%, up to 1 year - 10.5%, from 1 to 5 - 11% (depending on the issue  and duration). As the representative of Ministry of Finance  explained, Securities are issued with a maturity of 6 months, since  there is the same problem associated with restoring public  confidence. Savings government bonds have a maturity of 3 months.  "This is more costly for us, but our goal is to convince the  population of the republic that today the situation is different and  they are dealing with a new and reliable partner in the person of the  state," said Arshaluys Margaryan, noting that there have been no  deviations in payments since 1999.

Despite the fact that in this case there is no separate fund for  deposit insurance, the main feature of this loan is 100% Reliability,  since the main guarantor is the state. In addition to this, if in the  case of bank deposits, income are taxes, this income is non-taxable.  The deposit amount can be 1 thousand AMD, followed by the possibility  of replenishment of the deposit and repurchase. And all those who are  still in the group of skeptics, Arshaluys Margaryan recalls: "The  outstanding debt did not pass without a trace to any state." More  motivation than that in any case, if not you, but your descendants  will certainly receive dividends, can not found".

To recall, by June 30, 2017, the total national debt of Armenia  reached $ 6.140 billion, compared to December 2016, the growth was  3.34%. As of June 30 this year,  external debt was $ 4.942 billion,  and domestic - $ 1.198 billion. From 2017 to 2020, the projected  annual growth of government debt on average will be $ 480 million. At  the end of June this year, Government debt was $ 5.581 billion, since  December 2016, the growth was 2.64%.


News
Economy Ministry announces launch of program to assist textile  industry in ArmeniaEconomy Ministry announces launch of program to assist textile  industry in Armenia
Government is preparing programs to support domestic producers in  view of lifting of embargo on Turkish importsGovernment is preparing programs to support domestic producers in  view of lifting of embargo on Turkish imports
Armenian NPP and Rusatom Overseas to sign Memorandum of UnderstandingArmenian NPP and Rusatom Overseas to sign Memorandum of Understanding
Vahagn Khachatryan to head Armenian-Bulgarian intergovernmental  commission on economic and scientific-technical cooperationVahagn Khachatryan to head Armenian-Bulgarian intergovernmental  commission on economic and scientific-technical cooperation
Minister of Health of Armenia will head intergovernmental commission  on trade and economic cooperation with LithuaniaMinister of Health of Armenia will head intergovernmental commission  on trade and economic cooperation with Lithuania
Ministry of Economy: Armenia intends to reach 7% economic growth in  2022Ministry of Economy: Armenia intends to reach 7% economic growth in  2022
Labor productivity in Armenia is lower than EAEU averageLabor productivity in Armenia is lower than EAEU average
Acba Bank Brings Apple Pay to Customers. A safer, more secure and private way to pay with iPhone and Apple WatchAcba Bank Brings Apple Pay to Customers. A safer, more secure and private way to pay with iPhone and Apple Watch
By the end of 2022, inflation in Armenia will decrease to 4 +/-1.5%:  Candidate for Deputy Governor of Central BankBy the end of 2022, inflation in Armenia will decrease to 4 +/-1.5%:  Candidate for Deputy Governor of Central Bank
 Converse Bank Brings Apple Pay to Customers  A safer, more secure and private way to pay with iPhone and Apple Watch Converse Bank Brings Apple Pay to Customers A safer, more secure and private way to pay with iPhone and Apple Watch
Armenia`s premier chairs discussion of wine industry development  prospects  Armenia`s premier chairs discussion of wine industry development  prospects  
Ardshinbank Brings Apple Pay to CustomersArdshinbank Brings Apple Pay to Customers
Cash circulation to be restricted in Armenia from July 1, 2020Cash circulation to be restricted in Armenia from July 1, 2020
Environmental protection ARMENAL`s priorityEnvironmental protection ARMENAL`s priority
Armenia`s Minister of Economy appointed Armenian-Moldavan Economic Cooperation Commission co- chairArmenia`s Minister of Economy appointed Armenian-Moldavan Economic Cooperation Commission co- chair
Armenia`s minister of economy appointed co-chair of Armenian-Kazakh Economic Cooperation  CommissionArmenia`s minister of economy appointed co-chair of Armenian-Kazakh Economic Cooperation  Commission
Armenia`s Minister of Economy appointed co-chair of Armenian-Kyrgyz Economic Cooperation  CommissionArmenia`s Minister of Economy appointed co-chair of Armenian-Kyrgyz Economic Cooperation  Commission
In 2021, the number of subvention programs in Armenia exceeded the  two-year figureIn 2021, the number of subvention programs in Armenia exceeded the  two-year figure
ANIF Fund will invest about USD 1.4 million in transport and cargo  transportation fieldANIF Fund will invest about USD 1.4 million in transport and cargo  transportation field
Food Safety Inspectorate of Armenia imposes restrictions on import of  number of goods from Kazakhstan, Russia, Czech Republic and PolandFood Safety Inspectorate of Armenia imposes restrictions on import of  number of goods from Kazakhstan, Russia, Czech Republic and Poland
Only 5.5% of the highway was built under North-South program in 12  yearsOnly 5.5% of the highway was built under North-South program in 12  years
President of Armenia at meeting with Executive Director of Mubadala  noted Armenia`s interest in investments from  UAEPresident of Armenia at meeting with Executive Director of Mubadala  noted Armenia`s interest in investments from  UAE
The influx of foreign investment in the Armenian economy grew by  October 2021 due to a jump in FDIThe influx of foreign investment in the Armenian economy grew by  October 2021 due to a jump in FDI
EDB analysts presented the first in this year macroeconomic review:  Economic activity in Armenia increased by 5.2%EDB analysts presented the first in this year macroeconomic review:  Economic activity in Armenia increased by 5.2%
Armenian president`s visit results: Wizz Air Abu Dhabi to start  flights to YerevanArmenian president`s visit results: Wizz Air Abu Dhabi to start  flights to Yerevan
Armenia`s president meets with Masdar company CEOArmenia`s president meets with Masdar company CEO
The price of gas at the border in 2022 was regulated by an additional  agreement to the contract of 2013 - Ministry of Territorial  Administration and InfrastructuresThe price of gas at the border in 2022 was regulated by an additional  agreement to the contract of 2013 - Ministry of Territorial  Administration and Infrastructures
Vahan Kerobyan will head Armenian-Belarusian intergovernmental  commission on economic cooperation from Armenian sideVahan Kerobyan will head Armenian-Belarusian intergovernmental  commission on economic cooperation from Armenian side
Fly Arna, Armenia s national airline plans to launch air flights at  the end of MayFly Arna, Armenia s national airline plans to launch air flights at  the end of May
Gnel Sanosyan to head the Armenian-Turkmen intergovernmental  commission on economic cooperation from the Armenian sideGnel Sanosyan to head the Armenian-Turkmen intergovernmental  commission on economic cooperation from the Armenian side
Pashinyan formed working group for effective implementation of work  on construction program of small- medium reservoirsPashinyan formed working group for effective implementation of work  on construction program of small- medium reservoirs
Export of goods up to one million drams in Armenia will be exempt  from customs dutiesExport of goods up to one million drams in Armenia will be exempt  from customs duties
Armenia`s government grants loan to Armenian NPP Armenia`s government grants loan to Armenian NPP 
FLYONE ARMENIA launches Yerevan-Istanbul-Yerevan flightsFLYONE ARMENIA launches Yerevan-Istanbul-Yerevan flights
Armenian government to increase funding for subvention programs in  border communitiesArmenian government to increase funding for subvention programs in  border communities
Armavir leader in land purchase-and-sale deals Armavir leader in land purchase-and-sale deals 
2-fold YoY increase in real estate business in Yerevan 2-fold YoY increase in real estate business in Yerevan 
Results of the review of regulatory framework for advancing “green finance” in Armenia presented to stakeholdersResults of the review of regulatory framework for advancing “green finance” in Armenia presented to stakeholders
Armenian banks` client base up by 3.8% by Nov. 2021 Armenian banks` client base up by 3.8% by Nov. 2021 
9.7% year-on-year rise in housing prices in Armenia`s regions by Dec.  2021 9.7% year-on-year rise in housing prices in Armenia`s regions by Dec.  2021 
WB GDP growth forecast unchanged for Armenia WB GDP growth forecast unchanged for Armenia 
Armenian government minimizes contacts between tax authority and  taxpayerArmenian government minimizes contacts between tax authority and  taxpayer
33 587 children were born in Armenia in 11 months33 587 children were born in Armenia in 11 months
Wheat importers used bankruptcy as a tax evasion: SRCWheat importers used bankruptcy as a tax evasion: SRC
Issue of introducing universal income declaration system for  individuals was discussed at meeting chaired by Nikol Pashinyan Issue of introducing universal income declaration system for  individuals was discussed at meeting chaired by Nikol Pashinyan 
Service sector of Armenia reached 7.3% growth by December 2021Service sector of Armenia reached 7.3% growth by December 2021
Trade sector in January-November increased turnover by 7.9% per annumTrade sector in January-November increased turnover by 7.9% per annum
Telecommunications revenue of Armenia increased by 4.5% in 11 monthsTelecommunications revenue of Armenia increased by 4.5% in 11 months
Air passenger traffic increased 2.7fold over 11 monthsAir passenger traffic increased 2.7fold over 11 months
Armenian textile industry continues to demonstrate progressive growth  ratesArmenian textile industry continues to demonstrate progressive growth  rates
Alcohol industry in Armenia has increased production volumesAlcohol industry in Armenia has increased production volumes
Armenia`s metallurgical industry accelerates y-o-y growth rate to  double digitsArmenia`s metallurgical industry accelerates y-o-y growth rate to  double digits
Electricity generation in Armenia decreased by 2% in 11 monthsElectricity generation in Armenia decreased by 2% in 11 months
NA Committee approved nomination of Hovhannes Khachatryan for post of  Deputy Chairman of Central Bank of Armenia NA Committee approved nomination of Hovhannes Khachatryan for post of  Deputy Chairman of Central Bank of Armenia 
Russia leads both in export and import in Armenia`s foreign trade  turnoverRussia leads both in export and import in Armenia`s foreign trade  turnover
Manufacturing industry in Armenia has grown in 11 monthsManufacturing industry in Armenia has grown in 11 months
Economic activity up by 5.2% in Armenia in Jan-Nov 2021Economic activity up by 5.2% in Armenia in Jan-Nov 2021
Turkish Pegasus Airline to carry out Yrevan-Istanbul-Yerevan flightsTurkish Pegasus Airline to carry out Yrevan-Istanbul-Yerevan flights
Construction of alternative roads to be fully completed in Syunik in  2022Construction of alternative roads to be fully completed in Syunik in  2022
Inflation in Armenia in 2021 rises to 7.7% from 3.7% in 2020Inflation in Armenia in 2021 rises to 7.7% from 3.7% in 2020
Read more


Exchange rates
18.01.2022
RUB6.28-0.02
USD481.520.03
EUR548.74-1.27
GBP656.02-2.61
CAD384.48-0.34
JPY42.00-0.06
CNY75.800.09
CHF526.42-0.78