Thursday, November 24 2022 17:14

ArmInfo. Armenia's national debt in terms of figures is not essential. What is essential is its share in Armenia's GDP, Armenia's Premier Nikol Pashinyan stated at a  Cabinet meeting on Thursday as he inquired about the amount of  Armenia's national debt. 

According to the premier, "50% national debt/GDP ratio is a most  positive figure" due to AMD appreciation. 

"That played its role, but we are satisfied to note that it actually  has to do with the national debt management quality," he said. 

This January-October, Armenia's national debt increased by $837.5 or  by 9.1%, totaling $10,063,200,000.  AMD appreciation caused USD  depreciation of about 20% (AMD 480 to AMD 395/$1). In AMD terms,  Armenia's national debt decreased by 10.1% or by $449.3bln, down to  3,380.8bln. Since gaining independence, Armenia has borrowed about  $6.8bln, with its national debt increasing by $3.2bln over the last  four and a half years. 

This January-October, the government debt increased by $630mln or by  8.6% - from $8,769,700,000 (AMD 4,209.8bln by the end of 2021), up to  $9,524.6mln. In the AND terms, the government debt decreased by AMD  442.6bln or by 10.5%, down to AMD 3,767.3bln. As of October 31, 2022,  the unclaimed balance of the government debt totaled $4,179.9mln  ($4,481.1mln as of October 31, 2021). The budgeted AMD/USD exchange  rate for 2020 is AMD 477.5/$1. 

According to the forecast underlying the 2023 draft budget, the share  of Armenia's national debt is the GDP is expected to decrease from  63.4% at the end of last year to 53.8%, with 52.4% by the end of this  year. In absolute terms, Armenia's national debt is expected to  increase from AMD 4,430bln at the end of this year to AMD 4,463bln  and 4,881bln by the end of next year. The national debt/GDP ratio is  expected to decrease by 3.2 percentage points during this year - from  4,210bln or 60.3% of the GDP by the end of 2021 to 4,205bln  ($9.682bln) or 50.7% of the GDP, due to AMD appreciation against the  USD, economic growth and lower effective rate of interest (as a  result of a lower nominal interest rate and accelerated inflation).  By December 31, 2023, in absolute terms, this figure is expected to  reach AMD 4,628bln ($10.602bln) or 49.7% of the GDP. 

The AMD/USD exchange rate budgeted for 2023 is ANMD 404.74/$1 (AMD  477.45/$1 for this year), AMD/EUR exchange rate, AMD 405.35/EUR 1  (AMD 552.17/EUR 1 for this year), AMD 467.84/GBP 1 (AMD 652.1/GDP 1  for this year), AMD 6.72/RUB 1 (AMD 6.74/RUB 1 for this year).