ArmInfo.The share of the national debt in Armenia's GDP is expected to be 50.1%, Armenia's Deputy Minister of Finance stated in Parliament on December 9.
Almost all countries are increasing their national debts. The question is the debt/GDP ratio. In 2017, the share of national debt is Armenia's GDP was 53.7%, in 2018, 51.2%, in 2019, 50.1% and in 2020, 63.5%. In the last case, it was due to the pandemic and war.
The government plans to reduce the share of national debt is Armenia's GDP to less than 50%. Specifically, next year the figure is expected to be 49.8%. So the national debt management is not risky and is properly controlled.
As part of a joint budget assistance program based on the Fiscal Stability and Financial Markets Development Program Policy, two loan agreements were signed yesterday at the Finance Ministry of Armenia: a 100mln Euro loan agreement between Armenia and the French Development Agency (AFD) (two-tier) and a 100mln US dollar loan agreement between Armenia and the Asian Development Bank.
Armenia's Parliament on Friday ratified the government-submitted draft agreements.
By November 1, 2022, Armenia's national debt had totaled $10.1bln, a 10% growth this January-October. The reason is a 56% growth in the domestic debt (with a 50% growth in ten months), with a 9% decline in the foreign debt (a 7.6% decline this Jan-Oct). as a result, Armenia's foreign debt remained $6.1bln, with the country's domestic debt being $3.9bln. The government's share in the foreign debt was 91.2% against 92.9% last January-October. the Central Bank's share was 8.8% against 7.1% - $5.6bln and $538.6mln respectively.
