Growing foreign debt is a major challenge for Armenian economy, former head of central bank says
07.11.2017,
18:37
Armenia’s growing foreign debt is a major challenge for the economy, former head of the Central Bank Bagrat Asatryan told reporters on Tuesday.
YEREVAN, November 7. /ARKA/. Armenia’s growing foreign debt is a major challenge for the economy, former head of the Central Bank Bagrat Asatryan told reporters on Tuesday.
"Over the past 10 years, our foreign debt has been accumulating, while the economy actually is not growing. Today we are in a debt "pit," and we spend one-tenth of the income to pay our debt - this is the legacy that we are handing over to our generations. In 2018 the country’s foreign debt is set to grow further," he said.
Armenia’s aggregate state debt at the end of September 2017 amounted to $6,307.9 billion, having increased by 0.76% or $48 million from the previous month. The external state debt at the end of September 2017 stood at $5.067.86 billion, having grown by $46.5 million. The nominal volume of Armenia's state debt, according to the state budget for 2017, will be approximately $6.3 billion.
According to the current legislation, the state debt of Armenia should not exceed 60% of GDP. The restriction applies only to government debt. The Central Bank’s borrowings are not calculated. At the same time, if the state debt exceeds 50% of GDP, the government is obliged to cut costs, and the budget deficit should not exceed 3% of GDP. The total state debt of Armenia at the end of 2016 made 56.7% of GDP. -0-
"Over the past 10 years, our foreign debt has been accumulating, while the economy actually is not growing. Today we are in a debt "pit," and we spend one-tenth of the income to pay our debt - this is the legacy that we are handing over to our generations. In 2018 the country’s foreign debt is set to grow further," he said.
Armenia’s aggregate state debt at the end of September 2017 amounted to $6,307.9 billion, having increased by 0.76% or $48 million from the previous month. The external state debt at the end of September 2017 stood at $5.067.86 billion, having grown by $46.5 million. The nominal volume of Armenia's state debt, according to the state budget for 2017, will be approximately $6.3 billion.
According to the current legislation, the state debt of Armenia should not exceed 60% of GDP. The restriction applies only to government debt. The Central Bank’s borrowings are not calculated. At the same time, if the state debt exceeds 50% of GDP, the government is obliged to cut costs, and the budget deficit should not exceed 3% of GDP. The total state debt of Armenia at the end of 2016 made 56.7% of GDP. -0-
