Today the Armenian government has adopted a program of control of state debt for period from 2011 to 2013 which envisions the increase in foreign debt by 2013 from $3bn to $4bn.
In 2009 the foreign debt of Armenia increased greatly compared to the previous years-the ratio of external debt to GDP made up 36.1% though in 2008 this indicator was 13.6%. Meanwhile, Finance Minister Tigran Davtyan considers that such a growth in external debt is within the limits of control and cannot breach economic balance. The Armenian government predicts the GDP growth in the coming three years and thus the debt ratio to GDP will make up 39.7%.
The government has decided to make changes to the debt policy of the country according to which the country's internal debt will grow quicker than the foreign one. Davtyan explains it by the fact that the inner debt reduces possibility of default, the risks related to dollar rate, allows involvement and effective use of national savings. Special preference is given to issuance of obligations with the repayment term from 3 to 20 years, the interest rate of obligations is not indicated.
Armenia Today
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