Monday, October 18 2021 17:52

ArmInfo.For 9 months of 2021, Armenia's public debt increased by $ 1.069 billion, reaching $ 9.038.1 billion 973 million. In 2025, Armenia will have to allocate  almost $ 1.4 billion for the repayment of the government debt and  servicing (excluding the debt of the Central Bank of Armenia), formed  at the end of September 2021.

Thus, according to the data of the Ministry of Finance of Armenia,  the state debt of the Republic of Armenia from $ 7 billion 968.5  million, formed by December 31, 2020, by September 31 of this year,  increased by 13.4% or $ 1bn. 069 million. At the same time, over its  28-year history (since Armenia gained independence), the Republic of  Armenia attracted borrowings in the amount of about $ 6.8 billion,  and over the past three years "managed" to increase the national debt  by $ 2 billion 106 million.

In January-September 2021, the government debt increased from $ 7  billion 508.5 million (by the end of 2020) to $ 8 billion 564.5  million - by about $ 1 billion 056 million or 14.1%. External debt  (debt obligations of Armenia to international organizations and  foreign states, funds received from the emission of Eurobonds) from $  5 billion 599.5 million to $ 6 billion 192.0 million increased by  10.6% or $ 592.5 million. In particular, on January 26 this year  Armenia has placed among international investors the 4th issue of  10-year debt securities in the amount of $ 750 million. The  established annual yield of the 4th issue bonds turned out to be  lower than the yield of the 3rd issue - 3.875% versus 4.625%. During  the reporting period, domestic debt increased from $ 1 billion 909.0  million by about $ 463.5 million, or 24.3%, to $ 2 billion 372.5  million. The Central Bank's debt increased by 3% or $ 13.6 million  and amounted to $ 473.6 million (from $ 495.5 million by the end of  last year).

All debts are being paid:

Only for January-September of this year, AMD 127.6 billion was  allocated to pay interest rates on the government debt.

The largest creditor of Armenia at present is the World Bank - the  share of the International Bank for Reconstruction and Development  and the International Development Association accounts for 38.8% of  the state debt of the Republic of Armenia. The second major creditor  is the Asian Development Bank - 16.9%, the third place is held by the  International Monetary Fund - 7.6%, followed by the Eurasian  Development Bank with 7.2%.

Among the large creditor countries of Armenia, the first place is  taken by the Russian Federation - 7.2%, Germany - 6%, France - 3.1%,  Japan - 4.5%, China - 0.5%, and the USA - 0.3%, and the Development  Bank of Abu Dhabi - 0.1%.

To note, according to the draft state budget for 2022, by December  31, 2021, Armenia's public debt will amount to 4.509 billion drams  (about $ 9.135 billion) or 64.1% of GDP, and by the end of 2022 the  figure will reach 5.029 billion drams (about $ 10.188 billion). or  63.9% of GDP. By December 31, 2022, government debt, compared to the  same indicator for 2021 (4.274 billion drams or about $ 8.656  billion), will decrease by 0.1 percentage points and will amount to  4.779 billion drams (about $ 9.682 billion) or 60.7% of GDP - the  increase will amount to about $ 1.026 billion (the estimated exchange  rate of the Armenian dram to the dollar is 493.6 drams).

In 2022, 518.2 billion drams (about $ 1.050 billion) will be required  to service and repay government debt, of which 303.6 billion drams  (about $ 615 million) will be debt repayments, and 214.6 billion  drams - interest payments (about $ 434.7 million or 2.1% of GDP  against 185.5 billion drams this year). It is planned to pay 170.3  billion drams ($ 345.1 million) to repay and service external loans.  In 2022, the weighted average interest rate on government debt will  be 5%, up from 4.6% in 2021. The cost of servicing government debt  (interest payments) will amount to 2.7% of GDP.