PARLIAMENT PASSES BILL ON STATE DEBT

ARMENPRESS
April 8, 2008

YEREVAN, APRIL 8, ARMENPRESS: The parliament passed today in the second
reading a bill on State Debt which sets procedures for formation,
management, payment and servicing of the state debt.

Armenia did not have such a law and all related issues were regulated
by two other laws on Budget System and Treasury System.

Under the bill, the state debt are liabilities assumed by the
government and Central Bank. It also says that by the end of the year
the overall debt must not exceed the 60 percent of previous year’s
GDP, and if it exceeds 50 percent of the GDP the next year’s state
budget deficit must not exceed 3 percent of the average GDP of the
previous three years.

Any transaction that fails short of meeting this requirement will be
deemed annulled.