Armenian premier does not rule out probability of budget deficit exceeding 7.5% of GDP in 2009

YEREVAN, July 7. /ARKA/. Premier of Armenia Tigran Sargsyan did not rule out the probability that budget deficit of Armenia will exceed 7.5% of GDP in 2009.

“This will happen due to consistent GDP fall,” he said on Tuesday at international scientific conference “Impact of Global Crisis on Armenia: short-term and long-term perspectives”.

At its special sitting on June 2 the Parliament of Armenia approved the amendments to the law “On budget system” by two readings, which provide for increasing the acceptable level of state budget deficit from 5% to 7.5%.

According to the Premier, the deficit is being made up mainly by the Asian Development Bank (some $80mln) and the World Bank (some $50mln).

“24bln AMD will be covered from the $500mln Russian credit and 24bln AMD will be attracted from the internal market for making up the budget deficit,” he added.

Sargsyan noted the largest investment will be implemented to the amount of $150mln due to credit means from International Monetary Fund (IMF).

“The IMF Board of Directors has already made the decision, the agreement is submitted to Constitutional Court for discussion,” he said.

At the same time Sargsyan stated a special sitting of the National Assembly of Armenia is intended to be convened for ratification of the agreement on receiving credit to the amount of $150mln from IMF which will be used for meeting the deficit. G. S. –0—