Interfax, Russia
July 10 2009

Armenian MinFin forecasts foreign state debt to increase to 38% of GDP
within 10 yrs

YEREVAN July 10

Armenia’s foreign state debt in the next 10 to 11 years could increase
from 13-14% of GDP to 37-38% of GDP, the country’s Finance Minister
Tigran Davtyan, said at a press conference on Friday.

Davtyan said that the total foreign liabilities of the Armenian
government could increase to 30% of GDP within 11 years. Including the
debts incurred by the Central Bank, this figure could grow to 38% of
GDP.

"We have never incurred so much debt. Over 20 years total foreign
loans came to $1.6 billion but for this year a total of $1 billion in
foreign borrowing is set for ratification," Davtyan said.

He added that all schedules and appraisals indicate that by 2025
Armenia will not have problems with managing its external debt.

"According to all forecasts, we will not hit the critical debt
threshold of 50% of GDP," Davtyan added.

The Armenian MinFin said that foreign debt in 2008 increased by 8.8%
to reach $1.577 billion by December 31, 2008. This includes $1.425
billion in government debt and $151.9 million in liabilities for the
CB.