NATIONAL ASSEMBLY CONCLUDES ALMOST HALF OF ISSUES ON AGENDA OF REGULAR FOUR-DAY SESSION

Noyan Tapan
April 7, 2008

YEREVAN, APRIL 7, NOYAN TAPAN. The RA National Assembly on April 7
discussed 25 bills and legislative packages, concluding in one day
almost half of the number of issues on the agenda of the regular
4-day session. Such a great speed was mainly due to the fact that
the majority of discussed issues were bills envisaging amendments and
additions to the current laws, and these bills were discussed in the
second reading. In all likelihood the vote on bills will be held on
April 8.

Among the bills discussed was the bill on state debt submitted by the
government in second reading. It is for the first time that relations
connected to the state debt of the Republic of Armenia are regulated
by law.

By the bill, the state debt reprsents a sum of the debts of the
government and the Central Bank of Armenia. The components of the
state debt are the domestic and foreign state debts, as well as
state guarantees. The goals of the debt involvement are financing the
state budget deficit and ensuring current liquidity, assistance to
the balance of payment and replenishent of the reserves, as well as
maintenance and development of the domestic state debt market. The
bill stipulates that as of December 31 of the given year, the state
debt shall not exceed 60% of Armenia’s GDP of the previous year, and
if it exceeds 50% of GDP, then the state budget deficit of next year
shall not exceed 3% of the average GDP index in the past three years.

According to the bill, a transaction resulting in a state debt not
in line with these requirements has to be cancelled.