ARMENIA’S BUDGET DEFICIT TO BE COVERED BY WB, IMF, ADB AND RUSSIAN CREDITS

/PanARMENIAN.Net/
07.07.2009 14:56 GMT+04:00

/PanARMENIAN.Net/ Armenia’s State Budget deficit will be covered
due to allocations from World Bank, International Monetary Fund,
Asian Development Bank, as well as the Russian credits, RA Finance
Minister Tigran Davtyan said today during a press conference devoted to
"Global Crisis Impact on Armenian Economy: Long-term and Short-Term
Prospects", "Negotiations with all four parties are over, and
relevant international structures have already adopted decisions,"
he said. Negotiations with ABD which started early this year have
already finished. This creates a strong guarantee for funding the 2009
budget, he said, adding that half of IMF resources and some amount
of the Russian credits will be used for covering the 2010 budget. "We
are already considering prospect for fulfilling next year’s budget,"
he said.

Even the investments above will not decrease Armenia’s external
debts. "After attracting all the resources, our debts will still
remain at risk," Mr. Davtyan noted, adding that volumes in that
context will increase, but because Armenia had good base indices at
the beginning of the year (13%), the 2010-11 credit programs will
lower the specific weight of Armenia’s external debts to 30-38% in
relation to GDP (external debts with 50% specific weight are at the
highest risk). "Such debt is acceptable and controllable," he said.

Budget deficit will be funded by Asian Development Bank ($80 million)
and World Bank (about $50 million), Russian credits ($ 50 billion)
and International Monetary Fund ($ 150 million).