Armenia meets New Year in huge debt

By Azernews

By Rashid Shirinov

Although the New Year is approaching, Armenia is missing holiday spirit. Financial shortages, uncertainty about the future, household inconveniences, as well as lack of any flash of hope to survive the heavy situation frustrate ordinary Armenians.

“Armenia and its people will meet the New Year holidays in debt,” such a bleak statement was made by opposition MP Nikol Pashinyan during the discussions in the Armenian Parliament.

He said this because of the expected increase in the country's external debt in connection with the next loan agreement with the Asian Development Bank. This time Armenia is going to borrow $90 million. Another loan will provide 40 million euros from the French Development Agency.

A big part of all loans Armenia borrows from other countries and international organizations is being spent for personal needs of the criminal clan which rules the country. Eventually, simple Armenians pay off for the dirty business of their authorities.

According to Armenia’s Ministry of Finance, the national debt of the country will grow by $789 million by the end of 2016 to $5,867 million, and reach $6,277 million in 2017. The numbers are big enough to frighten a small country like Armenia.

Pashinyan said 8.8 percent of the budget expenses in 2017 will be aimed at the payment of foreign debt – third largest expenditure after social and defense expenses.

“Unfortunately, we have people who celebrate the New Year in debt. And now we all, our country, will likewise celebrate this New Year,” he noted.

Recently Armenia achieved three credit agreements about providing $180 million from abroad to the country. MP from Armenian National Congress Levon Zurabyan resented on this case: “We have zero growth, but we take credit for $180 million, by this increasing the national debt. I have an impression that there is no concept, there is only the intention to solve the immediate issues. We take the money, but we don't think what we will do in the future.”

Every citizen born in Armenia gets this duty on his neck, an opposition MP Aram Manukyan continued the discussion. “This debt amounts to $300 for every citizen.”

He said that according to the data of Carnegie Foundation, Armenia is ranked third in the world in terms of emigration after Syria and Bosnia and Herzegovina.

“That is, each of the four officially emigrate from Armenia. Then how will you replenish the budget and demonstrate economic growth to settle the debt?” he asked the Parliament members.

However, the Armenian authorities have not managed yet to solve this problem – they cannot give up corruption which long ago turned into the government's main feeding source.