Friday, December 1 2017 17:43
Karine Melikyan

Armenia`s external debt is significantly concentrated on World Bank loans

Armenia`s external debt is significantly concentrated on World Bank loans

ArmInfo. The structure of Armenia's external debt is moderately diversified. Debt for multi-country credit programs dominates in the total volume of external debt ($ 5.1 billion by October 1, 2017) - 66.7% or $ 3.4 billion. Then, non-residents' investments in Armenian Eurobonds - 17.3% or $ 873.4 million, and debts under bilateral credit programs ($ WB: IDA - $ 1.1 billion and IBRD - $ 659.5 million), by 11% ($ 550.9 million), and the increase in the number of loans made by the World Bank amounted to 14.4% or $ 730.4 million.

Thus, the external debt of Armenia by 35.3% ($ 1.8 billion) - from the Asian Development Bank (ADB), by 8.4% ($ 425.5 million) - from the International Monetary Fund (IMF), by 4.4% ($ 221.3 million) - from the European Investment Bank (EIB). For loans from the European Bank for Reconstruction and Development (EBRD), the debt is only $ 23.4 million or 0.5% of Armenia's external debt, and from the International Fund for Agricultural Development (IFAD) - $ 66.6 million or 1.3%. Among the lenders, the largest increase in debt for the 9 months of 2017 was provided by EIB - by 40.8%, followed by the EBRD by 14.2%, and the growth in other multilateral credit programs is much more modest: ADB - 7.6%, IFAD - 4.8%, IMF - 3.3%, WB - 2.9%. The investments of non-residents in Armenian Eurobonds decreased for 9 months of this year by 3.4%

By bilateral credit programs, the largest amounts of debt are reported by JICA (Japan) and KfW (Germany) - respectively $ 238.8 million and $ 233.6 million, or 4.7% and 4.6% of Armenia's external debt. The share of loans from France is 2.2% or $ 112 million, and Russia - 1.9% or $ 96.3 million. It is for loans from Russia and France recorded the largest increase in 9 months of 2017 - by 70.7% and 41% respectively, with an increase in loans from KfW by 16.6% and a decline in loans from JICA by 0.3%.

In the annual terms (9 months of 2017 to 9 months of 2016), Armenia's external debt increased by 11%, in the structure of which the debt on multilateral credit programs grew by 12%, on bilateral - by 26.2%, and on Armenian Eurobonds, on the contrary, decreased by 5%. By bilateral credit programs, the debt to Russia has increased 7.3-fold, France's 3.1-fold, KfW-13.4%, and JICA's decrease by 13.5%. According to multilateral credit programs, the annual dynamics of Armenia's debt to investors is also up: WB by 6%, ADB by 24.2%, IMF by 1.1%, EIB by 38.5%, EBRD by 24.5% %, and the only decline, and a small one, fixed by IFAD - by 0.3%.

In the third quarter of 2017, loans were attracted for $ 106 million, repaid by $ 26.7 million, interest payments were made for $ 17.3 million. Of these indicators, the quarterly decline was fixed by repayments - by 36.3% and interest payments - by 19.5%, while attracted increased by 39.8%. As a comparison, in the II quarter 2017, on these three indicators, a significant growth was registered: attraction - 2.3 times, repayment and interest payments - 1.8-1.9 times. A year earlier, for the III quarter of 2016, attractings increased by 45.1%, with a drop in interest payments by 24.2% and repayments by 26.1%.

The 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).

The degree of coverage of foreign debt with gold and foreign exchange reserves declined in Jan-Sep 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% for the 9 months of 2016), rather than the growth of external debt.

In 2016 the total public debt of Armenia grew 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. In 2016 year 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%. By January 1, 2017, the specific debt load per capita was $ 2 thousand, of which over $ 1.6 thousand came from external debt. In 2016, the share of national debt in Armenia's GDP grew from 48.7% to 56.6%, and only external debt in GDP - from 41.4% to 45.8%. Armenia's GDP growth slowed in 2016 to 0.2% from 3.2% in 2015.

POST A COMMENT
Input digits     


News
14 Armenian tech companies participate in Mobile World Congress in  Barcelona14 Armenian tech companies participate in Mobile World Congress in Barcelona
Tax authorities propose not to tax labor migrants with annual income  of up to AMD 12 million Tax authorities propose not to tax labor migrants with annual income  of up to AMD 12 million 
Gnel Sanosyan: potential of industrial companies and specialists of  Armenia is growingGnel Sanosyan: potential of industrial companies and specialists of  Armenia is growing
ADB signed sale and purchase agreement with Bank of Georgia in  respect of its shares in AmeriabankADB signed sale and purchase agreement with Bank of Georgia in  respect of its shares in Ameriabank
Founder of ABBYY Group, David Yang, to Speak at Armenia`s First  Investment and Financial ForumFounder of ABBYY Group, David Yang, to Speak at Armenia`s First  Investment and Financial Forum
Armenia`s economic activity increased by 10.7% per annum in Jan 2024Armenia`s economic activity increased by 10.7% per annum in Jan 2024
Gevorg Mantashyan: High-Tech Ministry makes consistent efforts for  emergence and progress of startups in ArmeniaGevorg Mantashyan: High-Tech Ministry makes consistent efforts for  emergence and progress of startups in Armenia
S&P affirms Armenia`s sovereign rating at `BB`; Outlook Stable,  projectting GDP growth of 6.2% in 2024 S&P affirms Armenia`s sovereign rating at `BB`; Outlook Stable,  projectting GDP growth of 6.2% in 2024
Food Safety Inspectorate  did not reveal any violations at Jermuk  Group enterprise after inspectionFood Safety Inspectorate  did not reveal any violations at Jermuk  Group enterprise after inspection
Erik Tintrup: Germany will continue to assist Armenia in tourism  developmentErik Tintrup: Germany will continue to assist Armenia in tourism  development
Privileged conditions with the Business Prime packagePrivileged conditions with the Business Prime package
Armenia`s government to establish G Solution organization using  facilities of Ministry of Finance, State Revenue CommitteeArmenia`s government to establish G Solution organization using  facilities of Ministry of Finance, State Revenue Committee
Armenia ideally positioned to offer India alternative sea trade  route, especially with Europe - Armenian minister Armenia ideally positioned to offer India alternative sea trade  route, especially with Europe - Armenian minister 
Armenia`s government kept election pledge -premier Armenia`s government kept election pledge -premier 
Armenia`s authorities suspend taxation of labor migrants Armenia`s authorities suspend taxation of labor migrants 
Motor Insurers` Bureau informs about need to indicate bank account  number in CMTPL agreements from April 1, 2024; what foreigners should  do not yet reportedMotor Insurers` Bureau informs about need to indicate bank account  number in CMTPL agreements from April 1, 2024; what foreigners should  do not yet reported
In terms of GDP per capita, Armenia is in first place in South  Caucasus - Pashinyan In terms of GDP per capita, Armenia is in first place in South  Caucasus - Pashinyan
Russia ready to develop technological cooperation with Armenia -  ambassador Russia ready to develop technological cooperation with Armenia -  ambassador 
Team Telecom Armenia announces sale of eSIM cards Team Telecom Armenia announces sale of eSIM cards 
Ria Money Transfer has recognized Ardshinbank Partner of the YearRia Money Transfer has recognized Ardshinbank Partner of the Year
Tourism Committee, SDA to cooperate in tourism development in Lori,  Tavush, Vaiots Dzor, Syunik Tourism Committee, SDA to cooperate in tourism development in Lori,  Tavush, Vaiots Dzor, Syunik 
Armenian authorities` GDP forecasts for 2024 seem overstated - expert Armenian authorities` GDP forecasts for 2024 seem overstated - expert 
Expert on Armenia`s international trade growth against Expert on Armenia`s international trade growth against "miserable  trade pattern"  
Tatul Manaseryan: In case of utilization of competitive advantages,  Armenia`s business activity growth could be within 7-8% by end of  2024Tatul Manaseryan: In case of utilization of competitive advantages,  Armenia`s business activity growth could be within 7-8% by end of  2024
Rustam Badasyan: until issue of taxation of labor migrants is finally  resolved, no coercive measures will be usedRustam Badasyan: until issue of taxation of labor migrants is finally  resolved, no coercive measures will be used
Armenia`s GDP growth slowed to 8.7% in 2023Armenia`s GDP growth slowed to 8.7% in 2023
UBA Head: Armenian banking system RoE became comparable to countries  with similar economiesUBA Head: Armenian banking system RoE became comparable to countries  with similar economies
Decision that was made in 10 days - UBA chairman on HSBC Bank`s exit  from ArmeniaDecision that was made in 10 days - UBA chairman on HSBC Bank`s exit  from Armenia
Daniel Azatyan: in Armenia, highest lending growth was registered in  construction sector, with decrease in industrial sector Daniel Azatyan: in Armenia, highest lending growth was registered in  construction sector, with decrease in industrial sector 
Entry of bank with international brand into financial market of  Armenia always desirable and important - UBA chairmanEntry of bank with international brand into financial market of  Armenia always desirable and important - UBA chairman
Armenia`s commercial banks to be authorized to issue guarantees for  participation of Armenian companies in procurement in EAEUArmenia`s commercial banks to be authorized to issue guarantees for  participation of Armenian companies in procurement in EAEU
Net inflow of transfers to Armenia decreased by 36% in 2023Net inflow of transfers to Armenia decreased by 36% in 2023
Economist: Outflow of remittances from Armenia to continue to grow in  2024Economist: Outflow of remittances from Armenia to continue to grow in  2024
Transavia to start operating flights on route Lyon - Yerevan - Lyon Transavia to start operating flights on route Lyon - Yerevan - Lyon 
Ameriabank set to join BOGG, a London Stock Exchange (LSE) listed financial group as a standalone entityAmeriabank set to join BOGG, a London Stock Exchange (LSE) listed financial group as a standalone entity
Bank of Georgia announces proposed acquisition of Ameriabank for  $303.6 millionBank of Georgia announces proposed acquisition of Ameriabank for  $303.6 million
Former MP on economic situation in Armenia: Former MP on economic situation in Armenia: "What is brought by water  will go with water"
Armenia, Iran discuss possibilities of strengthening logistics ties  between  two countriesArmenia, Iran discuss possibilities of strengthening logistics ties  between  two countries
Which Book to Choose as a Gift for the Book Giving Day? A Piece of Advice from Idram and IDBankWhich Book to Choose as a Gift for the Book Giving Day? A Piece of Advice from Idram and IDBank
SRC: individuals-residents of Armenia must pay tax on income received  abroadSRC: individuals-residents of Armenia must pay tax on income received  abroad
Expert: SRC should have taxed labor migrants only after large-scale  information campaign for them, which was not doneExpert: SRC should have taxed labor migrants only after large-scale  information campaign for them, which was not done
Global economic growth to slow -EDBGlobal economic growth to slow -EDB
EDB expects fiscal policy to stimulate Armenian economy in 2024 EDB expects fiscal policy to stimulate Armenian economy in 2024 
Armenian Card: arca.am application to stop operating from Apr 15,  2024Armenian Card: arca.am application to stop operating from Apr 15,  2024
Bank of Georgia Group PLC announces possible transaction to acquire  Ameriabank CJSCBank of Georgia Group PLC announces possible transaction to acquire  Ameriabank CJSC
Armenian insurance sector profit decreased by 33% in 2023Armenian insurance sector profit decreased by 33% in 2023
With HSBC`s withdrawal, Armenia loses last transnational  institutional investor - analystsWith HSBC`s withdrawal, Armenia loses last transnational  institutional investor - analysts
Armenia amends Gyumri Urban Roads Project agreement with EBRDArmenia amends Gyumri Urban Roads Project agreement with EBRD
Moody`s assigns B2 rating to Electric Networks of ArmeniaMoody`s assigns B2 rating to Electric Networks of Armenia
Electric Networks of Armenia CJSC bonds successfully placed Electric Networks of Armenia CJSC bonds successfully placed 
Food Safety Inspection Authority of Armenia responds to  Rospotrebnadzor`s decision to suspended sale of Jermuk mineral waterFood Safety Inspection Authority of Armenia responds to  Rospotrebnadzor`s decision to suspended sale of Jermuk mineral water
Within year, TUMO Center for Creative Technologies to open in Los  AngelesWithin year, TUMO Center for Creative Technologies to open in Los  Angeles
S&P Global Ratings upgrades Ardshinbank to `BB-`; outlook S&P Global Ratings upgrades Ardshinbank to `BB-`; outlook "Stable"
Ministry of Economy: Armenia almost doubled industrial and natural  diamonds` export in 2023Ministry of Economy: Armenia almost doubled industrial and natural  diamonds` export in 2023
How to Celebrate Love Days? A Piece of Advice from Idram and IDBankHow to Celebrate Love Days? A Piece of Advice from Idram and IDBank
Armenian official, ADB reps discuss construction, management projects  Armenian official, ADB reps discuss construction, management projects  
Emphasis in export strategy must be placed on markets not yet open to  us - Armenia`s economy minister Emphasis in export strategy must be placed on markets not yet open to  us - Armenia`s economy minister 
Fitch upgrades ACBA Bank to `BB-`; Outlook stableFitch upgrades ACBA Bank to `BB-`; Outlook stable
EEC: it is necessary to develop the initiative to establish EAEU  trading houses in IranEEC: it is necessary to develop the initiative to establish EAEU  trading houses in Iran
Visa Travel card - your best friend of the roadVisa Travel card - your best friend of the road
Read more


Exchange rates
27.02.2024
RUB4.390.01
USD404.41-0.01
EUR438.870.24
GBP512.830.23
CAD299.740.57
JPY26.910.06
CNY56.18-0.01
CHF459.66-0.22