ARMENIA’S FOREIGN DEBT NOT HEAVY BURDEN: RA PREMIER

news.am
Dec 25 2009
Armenia

Armenian government does not consider threat of foreign debt repayment
priority, RA Prime Minister Tigran Sargsyan said at the Dec.25 press
conference, asked about hazard related to the settlement of huge
foreign debts incurred by RA Government.

According to him, presently the country’s quality on debt repayment
is high and it is not a heavy burden on Armenia. This year Armenia
incurred over $2bn from Russia and international organizations,
thus RA state debt approached 40% of GDP.

Sargsyan considers that credit funds allocated to Armenia in 2009 can
be divided into two groups. First, purpose-oriented credits directed
to substructures to be covered by budget means. Second, the state
subsidies earmarked to businesses. In this case, the repayment burden
falls on business entities, making a part of the state foreign debt.