Tuesday, November 13 2018 12:14

ArmInfo. Armenia should not hope that creditors may write off part of the state debt. Acting Finance Minister Atom Janjughazyan stated on November 13, answering  the question of the NA MP from the Yelk faction Hovik Aghazaryan.

According to him, the cancellation of part of the public debt is not  a good signal for the international community. On the contrary, it is  necessary to take steps to increase GDP, improve the business  environment, attract investment. An important factor should be the  timely repayment of debt. In this case, as the Acting Minister of  Finance continued the international community's confidence in the  republic will increase. He added that since 2013, Armenia has been  among the countries with an average debt burden. In this regard,  foreign loans are already attracted with fewer benefits, and this,  according to the chief financial officer, is also normal. "It is  necessary to do everything possible so that in the long-term, Armenia  from the country that attracted loans becomes the country that  provides them," Atom Janjughazyan said.

Earlier in a conversation with the correspondent of ArmInfo the  Acting Minister noted that starting from 2021 the Armenian government  intends to refuse from external financial assistance in the form of  budget loans. Meanwhile, the financial authorities announced plans to  abandon this instrument to partially cover the budget deficit already  in 2019.

To recall, by the end of 2018, the public debt of Armenia according  to the law "On the State Budget of the Republic of Armenia for 2018",  will amount to about $ 7.2 billion. However, according to forecasts  set in the draft budget for 2019 on December 31, 2018, the state debt  of Armenia will be $ 7,053 million or 55% of GDP, and according to  some estimates by the Ministry of Finance, the figure will be $ 6.9  billion. The government debt is expected to be $ 6.487 billion (50.6%  BBO), and by the end of 2019- $ 6.953bn (49.7%). As of December 31,  2019, as noted in the budget message for the next year, the figure  will reach $ 7.468 billion (estimated exchange rate of the Armenian  dram against the dollar is $ 1 = 483.38 drams). In 2018, it is  expected to attract credit resources in the amount of $ 446 million,  of which $ 31 million through the Central Bank. In 2019, it is  planned to raise $ 512 million, through the Central Bank line $ 21  million.