October 22, 2018 - 16:18 AMT
PanARMENIAN.Net - In 2020 Armenia needs to pay off state debt worth 506.9 billion drams or about $1,055 billion. The information was passed by Ministry of Finance of RA to the appropriate inquiry by PanARMENIAN.Net
It was also stated that the amount of payable debt in terms of external loans is worth 127.3 billion drams, 121.1 billion drams in terms of government treasury bonds and 258.5 billion drams in terms of state FX bonds.
Earlier Reuters reported that Armenia, as a result of large debts and small national currency reserves, is in the list of the most vulnerable countries in relation to external debt refinancing. Meanwhile it was also stated that in 2020 Armenia needs to pay off an external debt worth half a billion dollars which is 3,9% of the country’s GDP.
Commenting on the indicators characterizing the risks associated with government debt; it was stated by the ministry that in the strategic plan of the debt management of the government of the Republic of Armenia for 2019-2021, approved by the executive, option of allocating new foreign currency bonds for the refinancing of foreign currency government bonds to be repaid by 2020 was also discussed.
“At the same time in mid-term period, in case of the availability of the opportunity to involve more attractive borrowings from international financial institutions or availability of favourable conditions in the domestic market, the government will discuss the expediency of refinancing the foreign currency bonds that are to be repaid by 2020 or early repayment of foreign currency bonds in parallel with involving borrowings via each of these sources or their combination”, reported the Ministry adding that as long as each year’s state budget of RA is deficient, Armenia will be a net borrower country. At the same time, according to the decision of the government made on July 10, 2018, the 2019-2023 project on decreasing Armenian government’s debt was approved. According to the project, the debt / GDP ratio will be gradually reduced till 2023 to the targeted 49.8%.