Tweet
RATIO OF ARMENIA'S OVERALL PUBLIC DEBT TO ITS EXPORTS IS 400%: EXPERT SAYS
/ARKA/
December 14, 2011
YEREVAN
YEREVAN, December 14. /ARKA/. The ratio of Armenia's overall public
debt to its exports is 400%, which is quite dangerous, a former
finance minister, now deputy rector of the Russian-Armenian (Slavonic)
University, Edward Sandoyan, said in an interview with "PostScript"
program of A1 + Webcast.
For comparison he said this ratio in Estonia is 12%, 30% in Russia,
100% in Georgia, 490% in Greece and 790% in Japan.
According Sandoyan, the more developed the national economy is ,
the greater its opportunities to attract foreign loans, particularly
through issuance of liquid government debt securities - bonds. For
example, he said, in the U.S. bonds can become an unlimited source
of funding its own public expenditures.
"But for us it can be dangerous, because we do not have the tools on
these markets, and will not be able to place our government bonds at
those markets for a long time yet and attract fresh funds until our
economy rises to its feet," he said.
Earlier prime minister Tigran Sargsyan said 'Given that our external
debt is made up mostly of low-interest rate loans provided by
international lending organizations we asses the burden as moderate
and controlled.'
According to the National Statistical Service of Armenia, Armenia's
overall public debt as of September 30 this year amounted to about
1.508 trillion drams. According to the Ministry of Finance, domestic
debt amounted to about 199.9 billion drams, having increased in
comparison with the beginning of the year by 10.9% and the external
debt stood at more than 1.308 trillion drams or $3.515.8 billion,
an increase of 6.6 %. ($1 - 382.27 drams).
From: A. Papazian
/ARKA/
December 14, 2011
YEREVAN
YEREVAN, December 14. /ARKA/. The ratio of Armenia's overall public
debt to its exports is 400%, which is quite dangerous, a former
finance minister, now deputy rector of the Russian-Armenian (Slavonic)
University, Edward Sandoyan, said in an interview with "PostScript"
program of A1 + Webcast.
For comparison he said this ratio in Estonia is 12%, 30% in Russia,
100% in Georgia, 490% in Greece and 790% in Japan.
According Sandoyan, the more developed the national economy is ,
the greater its opportunities to attract foreign loans, particularly
through issuance of liquid government debt securities - bonds. For
example, he said, in the U.S. bonds can become an unlimited source
of funding its own public expenditures.
"But for us it can be dangerous, because we do not have the tools on
these markets, and will not be able to place our government bonds at
those markets for a long time yet and attract fresh funds until our
economy rises to its feet," he said.
Earlier prime minister Tigran Sargsyan said 'Given that our external
debt is made up mostly of low-interest rate loans provided by
international lending organizations we asses the burden as moderate
and controlled.'
According to the National Statistical Service of Armenia, Armenia's
overall public debt as of September 30 this year amounted to about
1.508 trillion drams. According to the Ministry of Finance, domestic
debt amounted to about 199.9 billion drams, having increased in
comparison with the beginning of the year by 10.9% and the external
debt stood at more than 1.308 trillion drams or $3.515.8 billion,
an increase of 6.6 %. ($1 - 382.27 drams).
From: A. Papazian