Tuesday, January 9 2018 10:04
Karina Melikyan

The state debt of Armenia came out of a two-month stupor and in November 2017 it resumed growth - up to $ 6.4 bn, and the external one - crossed the $ 5.1 bn line

The state debt of Armenia came out of a two-month stupor and in November 2017 it resumed growth - up to $ 6.4 bn, and the external one - crossed the $ 5.1 bn line

ArmInfo. The state debt of Armenia by December 1, 2017 amounted to $ 6.4 billion (3.1 trillion drams), slowing the annual growth rate from 16.7% to 14.3%, which was provoked by a significant slowdown in domestic debt growth from 46.3% to 18.2% , while accelerating the growth of external debt - from 9.8% to 13.3%. This is taking place against the backdrop of the recovery of economic growth - 7.3% in January-November 2017 to the same period in 2016.

According to preliminary data of the RA Ministry of Finance, provided by the ArmInfo National Statistical Service, as of December 1, 2017, the external state debt exceeded the limit of $ 5.1 billion (2.5 trillion drams) or 81%, and domestic debt - $ 1.3 billion (624.3 billion drams) or 19%. It should be reminded that Armenia's foreign debt conquered the height of $ 5 billion in August 2017, continuing its ascent in September-October - to $ 5.1 billion and not frozen at that level afterwards.

Only in January-November 2017, Armenia's national debt grew by 8.5% due to an increase in external debt by 6.3% and an increase in domestic debt by 18.2%. A year earlier, in January-November 2016, the growth rate of domestic debt also outstripped the growth of external debt, but much more significantly - respectively, 37.5% and 4.7%, which increased the total national debt by 9.8%.

In the structure of external debt, 88.2% or $ 4.5 billion fell to the government, and the remaining 11.8% or $ 614.9 million - to the Central Bank, against 88.9% and 11.1% a year earlier. Moreover, the government's external debt accelerated the annual growth rate from 11.7% to 12.6%, while the growth of the Central Bank's debt sharply jumped from 3.1% to 23.5%. Only in January-November of 2017, the external debt of the Central Bank grew by 21.9% more than the government - by 4.7%, against almost the same moderate increase in January-November 2016 - 4.5% and 4.1% respectively.  Domestic government debt dominates in the structure of domestic government debt - in January-November 2017, the share fell from 91% to 87.3% ($ 1.1 billion or 544.8 billion drams), with an annual growth of absolute value of 13.6%, and only in January-November - by 8.9%. Then followed the Armenian Eurobonds - $ 155.1 million or 75.1 billion drams, the share of which increased in January-November 2017 from 8.4% to 12%, with an annual increase in the absolute value of 63.6%, and only in January-November - 62, 2%. The rest is covered by guarantees - 0.7% or $ 9 million with an annual growth of 29.4%, with a similar growth for January-November. A year earlier, as of December 1, 2016, the share of state bonds in domestic state debt was 90.7%, Armenian Eurobonds - 8.7%, and guarantees - 0.6%.  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- November 2017, the annual growth rates of economic activity accelerated from 0.6% to 7.3%. According to the forecasts of the Central Bank of Armenia, GDP growth in 2017 will be in the range of 4.4-4.9%, and according to the forecasts of the RA Ministry of Finance - 5.5-6%. Meanwhile, in the state budget program for 2017, GDP growth is set at 3.2%.

POST A COMMENT
Input digits     


News
Narek Karapetyan: Almost all infrastructure companies, except for  ENA, have increased their tariffs for servicesNarek Karapetyan: Almost all infrastructure companies, except for  ENA, have increased their tariffs for services
EIB: Education is one of key areas of partnership between EU-Armenia EIB: Education is one of key areas of partnership between EU-Armenia 
Armenian Deputy Foreign Minister participates in  4th International  Conference on Financing for Development in SevilleArmenian Deputy Foreign Minister participates in  4th International  Conference on Financing for Development in Seville
Armenian Prime Minister, President of  Trafigura Group discuss  potential  cooperation  in mining sector  Armenian Prime Minister, President of  Trafigura Group discuss  potential  cooperation  in mining sector  
ADB to provide Armenia with EUR236 million for construction of  Sisian-Kajaran roadADB to provide Armenia with EUR236 million for construction of  Sisian-Kajaran road
Vassilis Maragos: EU willing to strengthen technological cooperation with Armenia through concrete stepsVassilis Maragos: EU willing to strengthen technological cooperation with Armenia through concrete steps
Ardshinbank at the Forefront of Digital Security: Sponsor and Participant of BugBounty 2025 EventArdshinbank at the Forefront of Digital Security: Sponsor and Participant of BugBounty 2025 Event
Armenia`s regulator  approved the sale of 100% of GNC-ALFA s shares  to Viva Armenia CJSCArmenia`s regulator  approved the sale of 100% of GNC-ALFA s shares  to Viva Armenia CJSC
 International Chamber of Commerce ready to assist Armenia in hosting COP-17 International Chamber of Commerce ready to assist Armenia in hosting COP-17
Armenia to extend ban on ferrous metal exportsArmenia to extend ban on ferrous metal exports
IDBank Opens a New Branch at Homplex MallIDBank Opens a New Branch at Homplex Mall
MONEYVAL experts to visit Armenia in September to assess work on money laundering control MONEYVAL experts to visit Armenia in September to assess work on money laundering control 
Goods traceability to be improved in Armenia Goods traceability to be improved in Armenia 
Vaharshapan and Khoi communities to be merged Vaharshapan and Khoi communities to be merged 
Armenian NA OKs ENA nationalization Armenian NA OKs ENA nationalization 
Viva celebrates 20th anniversary: Armenia`s high-tech industry  minister on reforms in Armenia`s telecommunication industry Viva celebrates 20th anniversary: Armenia`s high-tech industry  minister on reforms in Armenia`s telecommunication industry 
Economic diversification meets Armenia`s interests - Kaja Kallas Economic diversification meets Armenia`s interests - Kaja Kallas 
5.1% increase in number of jobs in Armenia 5.1% increase in number of jobs in Armenia 
AraratBank: Special Rate for SWIFT Transfers up to EUR 20,000AraratBank: Special Rate for SWIFT Transfers up to EUR 20,000
Team Telecom Armenia, Team Systems under one roof: new Team Place  smart solutions center  openedTeam Telecom Armenia, Team Systems under one roof: new Team Place  smart solutions center  opened
Armenian Parliament discussing  nationalization of Electric Networks  of Armenia CJSCArmenian Parliament discussing  nationalization of Electric Networks  of Armenia CJSC
Armenia values development of  cooperation with Denmark in  high  technology and renewable energyArmenia values development of  cooperation with Denmark in  high  technology and renewable energy
ArmSwissBank: First in Armenia to Publish a Climate Transition PlanArmSwissBank: First in Armenia to Publish a Climate Transition Plan
Ucom Launches 5G Network in Abovyan and EjmiatsinUcom Launches 5G Network in Abovyan and Ejmiatsin
Armenia`s government to be entitled to approve new vehicle purchase support programmesArmenia`s government to be entitled to approve new vehicle purchase support programmes
WB appoints Fabrizio Zarcone as its new Country Manager for ArmeniaWB appoints Fabrizio Zarcone as its new Country Manager for Armenia
Armenia`s government violating Constitution and laws by trying to expropriate ENA - lawyer Armenia`s government violating Constitution and laws by trying to expropriate ENA - lawyer 
Armenian president holds bilateral meetings in Spain Armenian president holds bilateral meetings in Spain 
RA Tourism Committee, South Caucasus Railway combine efforts to develop tourism RA Tourism Committee, South Caucasus Railway combine efforts to develop tourism 
Populism being institutionalized in Armenia - ex-official Populism being institutionalized in Armenia - ex-official 
Samvel Karapetyan`s family starts investment dispute with Armenia Samvel Karapetyan`s family starts investment dispute with Armenia 
RA Minister of Economy  discussed  Armenian cargo carriers` situation  with his Georgian counterpartRA Minister of Economy  discussed  Armenian cargo carriers` situation  with his Georgian counterpart
Expert: Armenian businesses  face obstacles  to growth due to  unfavorable conditions Expert: Armenian businesses  face obstacles  to growth due to  unfavorable conditions 
Export growth has been minimal in recent years: Luys FoundationExport growth has been minimal in recent years: Luys Foundation
Economy Ministe: Armenia  determined to realize its agricultural potential despite numerous challengesEconomy Ministe: Armenia  determined to realize its agricultural potential despite numerous challenges
Economist: Women in Armenia are more productive in business, but  their involvement remains lowEconomist: Women in Armenia are more productive in business, but  their involvement remains low
Customer Appreciation Day at IDBankCustomer Appreciation Day at IDBank
ENA Acting CEO dismisses the idea of reducing tariffs under the new manager as a mythENA Acting CEO dismisses the idea of reducing tariffs under the new manager as a myth
ENA to defend its rights within law - statement ENA to defend its rights within law - statement 
AraratBank Joins BAFT AssociationAraratBank Joins BAFT Association
No romanticism, businesses soberer now - Tigran Jrbashyan No romanticism, businesses soberer now - Tigran Jrbashyan 
More than 2/3 of Armenian entrepreneurs do business in the extractive sector and consumer servicesMore than 2/3 of Armenian entrepreneurs do business in the extractive sector and consumer services
Minister: 69 trucks with Armenian cognac heading to Russian borderMinister: 69 trucks with Armenian cognac heading to Russian border
Economy Minster  discussed upcoming tasks with  WB Country Office HeadEconomy Minster  discussed upcoming tasks with  WB Country Office Head
Papoyan: On June 27, 94 trucks carrying Armenian apricots entered Russia for exportPapoyan: On June 27, 94 trucks carrying Armenian apricots entered Russia for export
In Armenian interbank foreign exchange market, dollar transactions decreased, while ruble transactions increased June 23 to June 27, 2025In Armenian interbank foreign exchange market, dollar transactions decreased, while ruble transactions increased June 23 to June 27, 2025
Armenia, Turkey discuss opportunities for energy cooperationArmenia, Turkey discuss opportunities for energy cooperation
Overchuk: It is impossible for Armenia to be a member of both  Eurasian Economic Union and EU at the same timeOverchuk: It is impossible for Armenia to be a member of both  Eurasian Economic Union and EU at the same time
Prime Minister participates in  Supreme Eurasian Economic Council  regular meetingPrime Minister participates in  Supreme Eurasian Economic Council  regular meeting
Over AMD 12 Billion Provided by AraratBank in 2024 to Support the MSME SectorOver AMD 12 Billion Provided by AraratBank in 2024 to Support the MSME Sector
ENA nationalization bill classic indirect expropriation - expert ENA nationalization bill classic indirect expropriation - expert 
Armenia`s authorities to nationalize ENA by amending two laws Armenia`s authorities to nationalize ENA by amending two laws 
60-70 percent of word under CEPA roadmap done - Ministry of Economy60-70 percent of word under CEPA roadmap done - Ministry of Economy
Even small states with ambitions and technological maturity can play  a significant role in the global technological ecosystem: PashinyanEven small states with ambitions and technological maturity can play  a significant role in the global technological ecosystem: Pashinyan
Under  EAEU-  UAE Economic Partnership Agreement, 95% of Armenia`s  current exports to Emirates will receive preferential coverage Under  EAEU-  UAE Economic Partnership Agreement, 95% of Armenia`s  current exports to Emirates will receive preferential coverage 
Economy Minister: In the near future, several dozen more cars will  leave Gezi as part of the agreement with TbilisiEconomy Minister: In the near future, several dozen more cars will  leave Gezi as part of the agreement with Tbilisi
World Bank to provide Armenia with $1.5 million grant for Nairit  plant dismantling and land reclamationWorld Bank to provide Armenia with $1.5 million grant for Nairit  plant dismantling and land reclamation
Economy Minister on ENA nationalization: This is not an attempt by the state to take over private businessEconomy Minister on ENA nationalization: This is not an attempt by the state to take over private business
Concessions provided to Yerevan by Ulaanbaatar to cover 98% of exports from Armenia to MongoliaConcessions provided to Yerevan by Ulaanbaatar to cover 98% of exports from Armenia to Mongolia
Armenian NA to consider nationalization of ENA on July 1 Armenian NA to consider nationalization of ENA on July 1 
Read more
Exchange rates
02.07.2025
RUB4.89-0.02
USD384.51-0.81
EUR452.41-2.65
GBP526.78-3.92
CAD281.73-1.49
JPY26.72-0.23
CNY53.64-0.16
CHF485.12-3.43