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UK GOVERNMENT TO WRITE OFF 10% OF ARMENIA'S FOREIGN DEBT
YEREVAN, FEBRUARY 9. ARMINFO. The UK Government suggests writing of
10% of Armenia's foreign debt, says Armenia's Finance and Economy
Minister Vardan Khachatryan.
No mechanisms are specified though. In the next few days Khachatryan
is meeting with UK Ambassador to Armenia Thorda Abbot-Watt to discuss
the terms and mechanisms of the deal.
"Now we have only the UK Government's proposal while the
implementation mechanism will be specified by a relevant agreement,"
says Khachatryan. One possibility is the mechanism used by Armenia
and the EU: the EU gave Armenia a 28 mln EUR loan in 2004 Armenia rep
aid 7 mln EUR receiving 5.5 mln EUR; in 2005 it will have to pay off
2 mln EUR to get 1.5 mln EUR. This scheme was to help Armenia to repay
the debt by 2007 but the country has managed to repay it ahead of time.
Armenia's foreign debt totals $1.117 bln with $700 mln to the World
Bank.
To remind, during their last meeting G-8 decided to write off debts
to the 19 poorest countries of the world: in Africa and South-Eastern
Asia. Armenia is also on the list and may enjoy writing off of 10%
of its foreign debt and 10% of accured interests.
YEREVAN, FEBRUARY 9. ARMINFO. The UK Government suggests writing of
10% of Armenia's foreign debt, says Armenia's Finance and Economy
Minister Vardan Khachatryan.
No mechanisms are specified though. In the next few days Khachatryan
is meeting with UK Ambassador to Armenia Thorda Abbot-Watt to discuss
the terms and mechanisms of the deal.
"Now we have only the UK Government's proposal while the
implementation mechanism will be specified by a relevant agreement,"
says Khachatryan. One possibility is the mechanism used by Armenia
and the EU: the EU gave Armenia a 28 mln EUR loan in 2004 Armenia rep
aid 7 mln EUR receiving 5.5 mln EUR; in 2005 it will have to pay off
2 mln EUR to get 1.5 mln EUR. This scheme was to help Armenia to repay
the debt by 2007 but the country has managed to repay it ahead of time.
Armenia's foreign debt totals $1.117 bln with $700 mln to the World
Bank.
To remind, during their last meeting G-8 decided to write off debts
to the 19 poorest countries of the world: in Africa and South-Eastern
Asia. Armenia is also on the list and may enjoy writing off of 10%
of its foreign debt and 10% of accured interests.