Volume of Armenia`s external debt may decrease by $ 570 million in case of implementation of "Environmental Protection Program in exchange for debt"

ArmInfo. The volume of Armenia's external debt may decrease by $ 570 million if the long-term program of the Environmental Protection Program in exchange for a debt is implemented. Deputy Minister of Nature Protection of Armenia Khachik Hakobyan stated this at a press conference today.

Hakobyan, in particular, noted that this is a very complex process, requiring appropriate procedures.  "Currently, the World Bank provides technical assistance for the organization of preparatory work and policy recommendations," he said.

As the Minister of Nature Protection Artsvik Minasyan noted earlier, "The program for the protection of the environment in exchange for debt" is unprecedented, since this is a country that does not have problems with the repayment of external debt. As a rule, he stressed, this program works in those countries that have certain problems with debt burden. Armenia today does not face such challenges, but at the same time attaches great importance to the application of this mechanism with the aim to invest in the environment.  "Instead of making payments on external debt, it is better to invest in protecting flora and fauna, as well as in effective water resources management.

By the end of 2017, Armenia's aggregate state debt, according to the budget message next year, will grow to $ 6.813 billion or 60.3% of GDP from $ 5.942 billion (according to the results of 2016), instead of the $ 6,512 set in the "Budget-2017" billion or 57.3% of GDP. The servicing of the state debt formed as of today will require an amount of $ 1.37 billion in 2020.