Wednesday, November 1 2017 09:23
Karine Melikyan

The state debt of Armenia has already reached $ 6.3 billion, and the external step has exceeded the $ 5 billion mark

ArmInfo. The state debt of  Armenia reached $ 6.3 billion (3.02 trillion drams) by October 1,  2017, slowing the annual growth rate from 16.7% to 12.5%, which was  provoked by a more significant slowdown in the growth of domestic  debt, from 42.9% to 20% rather than external debt - from 12.2% to  10.9%. As of October 1 this year. external debt amounted to $ 5.1  billion (2.4 trillion drams) or 81%, and domestic debt - $ 1.2  billion (593.3 billion drams) or 19%. According to the preliminary  data of the RA Ministry of Finance, provided by the ArmInfo National  Statistical Service, only in January-September of 2017 the state debt  of Armenia grew by 6.8% due to the growth of external debt by 6.3%  and the increase in internal debt by 9.1%. A year earlier, in  January-September 2016, the growth rate of domestic debt also  outstripped the growth of external debt, but much more significantly  - 31.9% and 7%, respectively, which increased the total national debt  by 9.8%.

In the structure of external debt, 87.9% or $ 4.5 billion fell to the  government, and the remaining 12.1% or $ 611.3 million - to the  Central Bank, against 89% and 11% a year earlier. Moreover, the  government's external debt has slowed the annual growth rate from  13.9% to 9.8%, and the CBR's debt growth has sharply accelerated from  6.1% to 20.7%. Only in January-September of 2017, the external debt  of the Central Bank grew by 21.1% more than the government - 4.7%,  against 6.3% and 7.9%, respectively, against the almost similar  moderate increase in January-September 2016 .

In the structure of the domestic state debt, state bonds dominate: in  January-September of 2017, the share fell from 91% to 89.1% ($ 1.1  billion or 528.4 billion drams), with an annual growth of absolute  value of 21.4%, and only in January-September this year. - by 4.8%.  Then followed the Armenian Eurobonds - $ 126.6 million or 60.6  billion drams, the share of which increased in January-September 2017  from 8.4% to 10.2%, with an annual increase in the absolute value of  57.1%, and only in January-September - on 32.4%.  The rest is covered  by guarantees - 0.7% or $ 9 million with an annual growth of 28.6%,  with a similar growth for January-September. A year earlier, as of  October 1, 2016, the government bonds accounted for 91.3% of the  state debt, 8% for Armenian Eurobonds, and 0.7% for guarantees.

The degree of coverage of foreign debt with gold and foreign exchange  reserves declined in January- September 2017 from 45.9% to 41.3% due  to a fall in reserves by 5% against the backdrop of the continuing  ascent of foreign debt. By way of comparison, we note that in  January-September 2016, the degree of coverage of external debt with  gold and foreign exchange reserves decreased less significantly -  from 41.1% to 39.7%, which was due to a more significant slowdown in  the growth of reserves (from 9.1% in 9 months of 2015 to 2.6% in 9  months of 2016), rather than growth in external debt.

The specific debt load per capita reached $ 2.1 thousand by October  1, 2017, of which $ 1.7 thousand comes from external debt. The growth  of this indicator is due to the continuing ascent of the general  public debt, including external debt, in parallel with which the  population is declining. So, according to the statistics on October  1, 2017 in Armenia, 2.980 million citizens live, compared with 3.270  million on the same date in 2011 (when the specific debt load per  capita was $ 1.2 thousand, of which $ 1.1 thousand came from external  debt). At that time, as of October 1, 2011, the degree of coverage of  external debt with gold and foreign exchange reserves was 55.6%,  against the backdrop of the slightly different rates of the  nine-month growth in reserves and external debt, respectively 4.8%  and 6.6% (with an annual increase of 5% , 5% and 8.9% respectively).

Recall that in 2016 the total public debt of Armenia rose by 15.7% to  $ 5.9 billion, in particular, foreign debt - by 11.6% - to $ 4.8  billion, and domestic - by 49.7% - to $ 1.14 billion (against $ 761.5  million in 2015). In 2016, the degree of coverage of external debt  with gold and foreign exchange reserves increased from 41.1% to 45.9%  against the backdrop of an increase in external debt for this period  by 11.6%, with an increase in reserves by 22.2%. Due to the growing  national debt and high migration, the specific debt load per capita  reached $ 2 thousand by January 1, 2017, of which over $ 1.6 thousand  came from external debt.  According to the statistical data for  2011-2016, the population of the Republic of Armenia decreased from  3.274 million to 2.987 million. As a result of 2016, the share of the  national debt in Armenia's GDP was 56.6%, compared to 48.7% in 2015,  and only in external debt the share in GDP increased from 41 , 4% in  2015 to 45.8% in 2016. Armenia's GDP growth slowed in 2016 to 0.2%  from 3.2% in 2015. In January- September 2017, the annual growth  rates of economic activity accelerated from 1.6% to 5.1%. According  to the forecasts of the Central Bank and the Government of the  Republic in 2017, it will be possible to ensure higher GDP growth  rates than the planned 3.2% in the state budget program, and by 2015  it is forecasted real GDP growth of 5.5%.

POST A COMMENT
Input digits     


News
Armenian PM, Head of Tashir Group of Companies discuss implementation  of investment projects Armenian PM, Head of Tashir Group of Companies discuss implementation  of investment projects 
By announcing the upcoming increase in the minimum wage and pensions,  the authorities may increase inflationary pressure - Former head of  Central BankBy announcing the upcoming increase in the minimum wage and pensions,  the authorities may increase inflationary pressure - Former head of  Central Bank
Team Telecom Armenia will partner with Tech Week Gyumri 2022Team Telecom Armenia will partner with Tech Week Gyumri 2022
According to OneTwoTrip, Armenia is in TOP-3 most popular  destinations for Russian touristsAccording to OneTwoTrip, Armenia is in TOP-3 most popular  destinations for Russian tourists
Yandex opens new office in Armenia to coordinate company`s work in  CIS countriesYandex opens new office in Armenia to coordinate company`s work in  CIS countries
Converse bank will cover the insurance costs within the framework of program lendingConverse bank will cover the insurance costs within the framework of program lending
Armenia, Russia to deepen strategic partnership in both nuclear and  non-nuclear energyArmenia, Russia to deepen strategic partnership in both nuclear and  non-nuclear energy
Government proposes way to solve problem with export of fruits and  vegetablesGovernment proposes way to solve problem with export of fruits and  vegetables
Minister: Dram revaluation may lead to repeated Minister: Dram revaluation may lead to repeated "destruction" of the  industry
Financing of subvention programs in Armenia reached 7.3 billion drams  in 2022Financing of subvention programs in Armenia reached 7.3 billion drams  in 2022
WB to provide technical assistance to educational sector of Armenia  under PPPWB to provide technical assistance to educational sector of Armenia  under PPP
Armenian government recognizes number of territories in Syunik as  Armenian government recognizes number of territories in Syunik as  "overriding public interest" for construction of North-South Corridor
Lawyer in Lawyer in "March 1" Case nominated as Judge of Armenia`s  Constitutional Court
Order Mastercard Standard and Mastercard Gold and use the preferential credit lineOrder Mastercard Standard and Mastercard Gold and use the preferential credit line
Pashinyan: From January 1, 2023, pensions, the minimum wage and  benefits will be increased in ArmeniaPashinyan: From January 1, 2023, pensions, the minimum wage and  benefits will be increased in Armenia
Tax collections will exceed the level planned for the first half of  the year by about 60 billion drams:  PashinyanTax collections will exceed the level planned for the first half of  the year by about 60 billion drams:  Pashinyan
In 2022, Armenia will be able to reduce the level of government debt  much faster than planned: Ministry of FinanceIn 2022, Armenia will be able to reduce the level of government debt  much faster than planned: Ministry of Finance
Armenia could be major supplier of sugar beet seeds to EAEU  member-states Armenia could be major supplier of sugar beet seeds to EAEU  member-states 
Armenia 84th in Speedtest Global Index rankings Armenia 84th in Speedtest Global Index rankings 
CBA: Inflow of foreign labor migrants and capital to Armenia has  increased projected GDP growth to 4.9%CBA: Inflow of foreign labor migrants and capital to Armenia has  increased projected GDP growth to 4.9%
Central Bank of Armenia forecasts increase in exports by 5.1% and  imports by 8.3% for 2022Central Bank of Armenia forecasts increase in exports by 5.1% and  imports by 8.3% for 2022
Poland considers Armenia as profitable platform for entering EAEU  marketPoland considers Armenia as profitable platform for entering EAEU  market
In its improved forecast for 2022, CBA reduces decline in net  remittance inflows to 12% from previous 20%In its improved forecast for 2022, CBA reduces decline in net  remittance inflows to 12% from previous 20%
Business community of Armenia called on government to find assistance  mechanisms in connection with dram revaluation Business community of Armenia called on government to find assistance  mechanisms in connection with dram revaluation 
CBA forecasts 14.8% unemployment in ArmeniaCBA forecasts 14.8% unemployment in Armenia
Majority interest in Armenia Securities Exchange was transferred to  Warsaw Stock ExchangeMajority interest in Armenia Securities Exchange was transferred to  Warsaw Stock Exchange
ACBA Bank and Ameriabank helped beneficiaries to equip cash registers  with system for accepting non-cash payments with investmentsACBA Bank and Ameriabank helped beneficiaries to equip cash registers  with system for accepting non-cash payments with investments
Armenia, Russia to expand cooperation in agricultural and industrial  fieldsArmenia, Russia to expand cooperation in agricultural and industrial  fields
Rossiya Airlines to start operating flights from Samara to Yerevan  from July 2Rossiya Airlines to start operating flights from Samara to Yerevan  from July 2
A joint Armenian-Russian technopark may be established in Armenia-  GordeyevA joint Armenian-Russian technopark may be established in Armenia-  Gordeyev
IMF improves Armenia`s GDP growth forecast for 2022 to 5%IMF improves Armenia`s GDP growth forecast for 2022 to 5%
Halal to open office in ArmeniaHalal to open office in Armenia
Government of Armenia approves regular applications for  implementation of subvention programs in 7 regions of countryGovernment of Armenia approves regular applications for  implementation of subvention programs in 7 regions of country
Process of discussing construction project of new power unit in  Armenia begunProcess of discussing construction project of new power unit in  Armenia begun
How long will the drama with rising dram last? - Haykaz FanyanHow long will the drama with rising dram last? - Haykaz Fanyan
Service sector is main driver of double-digit economic growth in  ArmeniaService sector is main driver of double-digit economic growth in  Armenia
ADB: Armenia is a country of great opportunitiesADB: Armenia is a country of great opportunities
Armenia`s government plans renovation of 500km of roads Armenia`s government plans renovation of 500km of roads 
ARARATBANK resumes payment of dividends in 2022 and plans new issue  of sharesARARATBANK resumes payment of dividends in 2022 and plans new issue  of shares
At the end of 2021, EDB investment portfolio reached USD 4.5 billionAt the end of 2021, EDB investment portfolio reached USD 4.5 billion
Business community of Armenia calls on economic authorities to take  urgent measures to rescue businesses that suffered greatly from sharp  revaluation of dramBusiness community of Armenia calls on economic authorities to take  urgent measures to rescue businesses that suffered greatly from sharp  revaluation of dram
Armenian NPP has been connected to country`s national gridArmenian NPP has been connected to country`s national grid
Armenian Deputy PM took part in meeting of EDB CouncilArmenian Deputy PM took part in meeting of EDB Council
Rustam Badasyan proposed to WCO Secretary General to hold 6th Global  Canine Forum in YerevanRustam Badasyan proposed to WCO Secretary General to hold 6th Global  Canine Forum in Yerevan
Armenia, Korea stress necessity to conclude intergovernmental  agreement on cooperation in customs mattersArmenia, Korea stress necessity to conclude intergovernmental  agreement on cooperation in customs matters
FLY BAGHDAD launches Baghdad-Yerevan-Baghdad flightsFLY BAGHDAD launches Baghdad-Yerevan-Baghdad flights
Armenia`s exchange market oversupplied with US dollars - expert Armenia`s exchange market oversupplied with US dollars - expert 
Opening of the second customs zone on Upper Lars will increase the  throughput capacity of the checkpoint by 30% - KerobyanOpening of the second customs zone on Upper Lars will increase the  throughput capacity of the checkpoint by 30% - Kerobyan
FLYONE ARMENIA sends its 100.000th passenger on flightFLYONE ARMENIA sends its 100.000th passenger on flight
Fly Arna office opened at Zvartnots International AirportFly Arna office opened at Zvartnots International Airport
Different prices for same product or service can not be set,  depending on method of payment, cash or non-cash -CBA  message Different prices for same product or service can not be set,  depending on method of payment, cash or non-cash -CBA  message 
ARARATBANK to act as a major sponsor of UAV contest in ArmeniaARARATBANK to act as a major sponsor of UAV contest in Armenia
Armenia can achieve economic growth of 7-9% in 2022Armenia can achieve economic growth of 7-9% in 2022
Armenia`s authorities to invest in new capital programmes Armenia`s authorities to invest in new capital programmes 
Registered jobs and taxes on them are again unprecedented in Armenia Registered jobs and taxes on them are again unprecedented in Armenia 
Inflation in Armenia is a social catastrophe: EconomistInflation in Armenia is a social catastrophe: Economist
Competition Protection Commission of Armenia on how exchange rate  affected cost of granulated sugar and sunflower oilCompetition Protection Commission of Armenia on how exchange rate  affected cost of granulated sugar and sunflower oil
Orion Summit 2022: The main challenge for Armenia is a change in  mindsetOrion Summit 2022: The main challenge for Armenia is a change in  mindset
EPIC announces start of accepting applications for participation in  Entrepreneurship World Cup EPIC announces start of accepting applications for participation in  Entrepreneurship World Cup 
ACBA Leasing has rebranded and intends to double its leasing  portfolio in next 2 yearsACBA Leasing has rebranded and intends to double its leasing  portfolio in next 2 years
Read more


Exchange rates
04.07.2022
RUB7.41-0.05
USD407.52-0.43
EUR425.90-0.45
GBP494.732.91
CAD317.361.58
JPY30.10-0.04
CNY60.76-0.25
CHF424.720.08