EXPERT: ARMENIA’S FOREIGN DEBT IS EXPECTED TO CONSTITUTE 40% OF GDP IN 2010
ARKA
Dec 22, 2009
YEREVAN, December 22. /ARKA/. Armenia’s foreign debt is expected
to constitute 40% of GDP in 2010, Gagik Minasyan, head of Armenian
National Assembly’s finance and budget committee, said at a press
conference on Monday.
"This result is far from the 2008 situation, when Armenia’s foreign
debt was 13% of GDP. But this situation is common for all countries."
The lawmaker said that amid the global recession, Armenia, like other
countries, had no other option but to enlarge its debt burden.
Many countries’ debts are equal to GDP or even exceed it.
Minasyan said that it was the last resort for Armenian authorities
to borrow money.
"If we refrain from this move, the crisis could strike harder at our
citizens," he said.
An IMF mission will come to Armenia in 2010 for discussing room for
restructuring Armenia’s some liabilities.
The legislator found it difficult to predict results of these
negotiations, but timely service of the debt inspires hope for success.
He said Armenia has already completed negotiating with the European
Union over ~@100 million, of which one third will be received in
grants.
Armenia’s state debt has grown 19.9% reaching AMD 1186.3 billion by
late September.
Of this amount, AMD 140.8 billion was internal debt and AMD 1045.6
billion or $2720,9 million foreign debt.
The country has considerably enlarged its foreign debt by borrowing
$823 million from International Monetary Fund, $545 million from the
World Bank and $500 million from Russia.
In the 2010 state budget, Armenia’s state debt is planned at $3.9
billion.
According to the World Bank’s outlook, Armenia’s foreign state debt
will reach 50% of GDP by late 2010.
From: Emil Lazarian | Ararat NewsPress
