ARMENIA IS ONE OF THE COUNTRIES THAT HAVE A SMALL EXTERNAL DEBT
By Ara Martirosian

AZG Armenian Daily
13/12/2006

In 2006 it will be 1 billion 261 million dollars

New economic bonds will be put out on January 16 next year, which
are designed for natural persons. The guest of Economic Journalists’
Club Arshaluys Margarian, head of external debt regulation department
at Finance and Economy Ministry, said 2 days ago. He noted that their
reimbursement deadline would be from 3 months till 25-30 years. But
the first putting out will be for 9 months or 1 year term. They will
be sold not by auction but by direct sell during a month.

To the basic subject which interested people about bonds profit
Arshaluys Margarian responded that they are a little low of bank
middle deposit rate. Now the rate is 7-7.5. Why low? As it is known,
the public bonds are out of competition and they have low profit
but they are guaranteed. Arshaluys Margarian stated that the first
edition would be in the amount of 100-150 million drams and then he
touched upon the main subject of the press conference about external
and internal debts service.

"We have the best credit portfolio", assured Arshaluys
Margarian. Credits acquired from the International Financial
Organizations are for 30-40 year deadline and they have 10 years
privileged term and almost without any rate. It does not make a serious
overload on the budget and Armenia is counted as one of the countries
with small external debt.

The GDP-the external debt correlation was 22 percent last year,
this year it will be 21 percent, next year 17 percent.

In 2006 according to 9 months results the Armenian external debt
is 1 billion 168 million dollars. In Arshaluys Margarian’s words,
it will be 1 billion 261 million dollars by the annual results. It
is expected that the external debt will increase till 1 bln 369 mln
dollars. Here are amounted the sums which the International Financial
Organizations according to the accepted decision is giving to Armenia.

How is the reimbursing of the external debt getting on? According
to Arshaluys Margarian, in 2006 Armenia has liquidated 16.8 million
dollars or 7 billion drams of the credit sum and 9 million dollars or
3.7 billion drams of rates. Next year it is expected to pay off 17.2
million dollar or 6.2 billion drams of the credit sum and 10 million
dollars or 3.6 billion drams of rates. The head of public debts
regulation department said that the greatest paying off would be in
20250-2026 years. Taking into consideration the study results made by
international organizations, he said that even at the worst (economic
recession till 2.5-3 percent, diminution of export and increasing of
import) Armenia would remain a country that has a small external debt.

As for to the internal debt it is 58 billion drams.

Only this year it became 7 billion drams.