STATE BUDGET FULFILLED WITH SUPLUS OF 9.4 BILLION DRAMS IN FIRST QUARTER OF 2007

Noyan Tapan
May 31 2007

YEREVAN, MAY 31, NOYAN TAPAN. In the first quarter of 2007, the RA
state budget (without the inflow of funds under the credit programs
financed from external sources) was fulfilled with a surplus of
9.4 bln drams (more than 26.1 mln USD). The surplus was negatively
financed by 16.4 bln drams from domestic sources and was positively
financed by 7 bln drams from external sources.

According to the RA Ministry of Finance and Economy, the state budget
was negatively financed by about 489.5 mln drams at the expense
of treasury bonds (their issue made 12.8 bln drams, redemption –
13.3 bln drams). 440 mln drams was allocated from domestic sources of
deficit financing for payment of promissory notes. Available budgetary
resources grew by 15.4 bln drams.

In the indicated period, 10.2 bln drams was provided by the World
Bank under the Poverty Reduction Assistance Program.

In the first quarter of 2007, 2.6 bln drams was allocated from the
RA state budget for state debt servicing, which ensured fulfilment
of the program for the first half of 2007 by 49.8%, in particular,
1.6 bln drams was allocated for servicing the domestic debt and 975.1
mln drams – for servicing the foreign debt.

3.2 bln drams was allocated from the state budget for payment of
foreign liabilities, in particular, 1.4 bln drams was allocated
for payment of liabilities under programs financed by World Bank,
1.4 bln drams – for payment of liabilities under programs financed
by the European Bank for Reconstruction and Development, and 410.9
mln drams – for re-payment of the US commodity credit.