Today.Az » World news » Armenia's foreign debt to reach U.S. $4bn by 2013
09 July 2010 [11:07] - Today.Az
On July 8, the Armenian Government first approved a strategic program of national debt control for 2011-2013.
Under the program, Armenia's foreign debt is to reach U.S. $4bn by 2013 against the present U.S. $3bn.
Last year, Armenia’s foreign debt considerably increased as compared with previous years. Specifically, the foreign debt/GDP ratio made 36.1% against 13.6% in 2008.
Minister of Finance Tigran Davtyan believes that this increase in the country's foreign debt can still be controlled and cannot disturb the country’s economic balance. The Government forecasts a higher-rate GDP growth for the following three years. As a result, the foreign debt/GDP ratio will be 39.7%.
The Government also decided to change its debt policy. The country’s internal debt is expected to increase at a higher rate than foreign debt. Minister Davtyan explained that the internal debt reduces the probability of default and USD exchange rate-related risks, enables the involvement and effective utilization of national funds. Priority will be given to 3-20-year bonds. The Minister did not say anything about the bond yield.
/News.am/
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