Friday, December 20 2019 16:36

ArmInfo. In 2020, Armenia plans to attract 171.6 billion drams or $ 360.2 million (the estimated rate of the US dollar to the Armenian dram 476.46). Head of the department  for accounting and servicing of the Department of Public Debt  Management of the Ministry of Finance of Armenia Artak Marutyan  informed ArmInfo about this.

At the same time, according to Marutyan, the entire volume of  borrowings will be carried out through targeted credit programs. As  the representative of the Ministry of Finance recalled, in the  framework of the policy enshrined in the Medium-Term Expenditure  Program for 2020-2022, in the medium term, the republic does not plan  to attract budget assistance loans, which is an unprecedented fact,  at least over the past 10 years.

Thus, according to the law "On the state budget for 2020", the budget  deficit will be 160.7 billion drams or 2.3% of GDP. The deficit will  be financed from external sources - in the amount of 211.2 billion  drams and another 50.5 billion drams from domestic resources.

To finance the state budget deficit under external loans, the road  construction sector will receive $ 114 million, the energy sector - $  58.3 million, of which $ 31.3 million will be allocated for the  restoration program of the Armenian nuclear power plant. It is  noteworthy that in the next fiscal year there will be various public  sector reform programs all $ 55.5 million was allocated, and  education and social sectors will receive together $ 43 million,  agriculture and irrigation - $ 51.4 million, irrigation $ 19.1  million, and sanitation - $ 15.6 million.

At the same time, the expert said, 26.6% of the planned borrowings  will come from loans from the Asian Development Bank (ADB), 23.9%  from the World Bank (IBRD and the International Development  Association), 7.9% is expected from the EBRD) , 9.8% - from the EIB ,  4.1% from the EDB. The share of Russian loans will be 16.2%, France  will provide 2.8% of the borrowings, 7.6% is expected from KFW.   Almost half of the planned borrowings - 49.7% are expected in the  field of loans provided in the US currency, 36.7% - in euros and  13.6% in SDR. 56.6% of them at a floating interest rate.

At the end of 2020, it is expected that the largest external  creditors of Armenia in the amount of $ 4.4 billion in government  debt continue to be the World Bank (WB), represented by the  International Development Association (IDA) and another member of the  WB group - the International Bank for Reconstruction and Development  (IBRD). The list of major creditors also includes the Asian  Development Bank (ADB) with 18.7%, the Eurasian Development Bank  (EDB) - 7.3% and the European Investment Bank with 3.5%.

It is expected that by the end of 2020 the unclaimed balance of  external loans of Armenia will amount to $ 940 million. As of October  30, 2019, the figure would be at the level of $ 1.43 billion.  According to the results of the next year, 31% of the undeveloped  part of loans will fall to KFW loans ( $ 290 million), ADB loans -  22% or $ 200 million, EDB - 17% or $ 170 million, IBRD - 24% or $ 130  and Russian loans 7% or $ 70 million.