USD 921 mln will be alloted to RA public debt payment in 2020

Public debt management in Armenia started from a blank paper, then to provide minimal ration needs, they started to take from external sources. Arshaluys Margaryan, Head of Armenian Finance Ministry’s Department of Public Debt Management, told at today’s seminar-discussion in Tsaghkadzor.

“Today Armenia’s public debt—of RA Government and of Central Bank of Armenia (CBA) as of October 1 comprised USD 607 million,” he said.

A.Margaryan stated that from next year the budget can’t be planned with a deficit more than 3%, although the threshold is 7%. “Our debt with repayments is extended untill 2050. Neither of our neighbors has such an extension, despite they’re equal regarding physical volumes and the comparison isn’t proper,” he said.

According to Arshaluys Margaryan average interest rate of the Government comprises 4.5%, which is due to low interest rate on external loans and borrowings, and the highest is on treasure bonds—14%.

Pursuant A.Margaryan’s assessments, by the end of this year we should exceed 54.6% of GDP, however, that number is sensitive due to exchange rate fluctuations.

Stating if Armenia doesn’t take borrowing, then USD 921 million will be directed to payment in 2020, A.Margaryan assured, “All our partners accept that we have a perfect payment schedule.”

By Gayane Khachatryan