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ARMENIA FACES HIGH NATIONAL DEBT AND BANKING WOES
AzerNews, Azerbaijan
April 19 2013
20 April 2013, 00:17 (GMT+05:00)
By Sabina Idayatova
Armenia's national debt amounted to $3.738 billion or about 38 percent
of the GDP in late 2012, acting Finance Minister Vache Gabrielyan said
at a government meeting on Thursday, local media reported.
Gabrielyan said the bulk of the debt consists of direct liabilities of
the government and some $594 million are the liabilities of the
Central Bank of Armenia (CBA).
A media report suggests that the Armenian banking system has faced a
crisis related to the credit system.
The main problem is the inability to repay loans borrowed earlier from
banks. The banks hope that the central bank will find major sources of
funds for investment in the financial system.
The banking problem is further exacerbated by the bankruptcy of the
Armenian airline Armavia. The company recently declared bankruptcy
after its debt to various banks reached $50 to $60 million.
The current deplorable economic situation facing the country is
forcing people to leave their homeland. Thus, the number of emigrants
from Armenia continues to exceed the number of immigrants.
165,275 people left Armenia in the first quarter of this year,
compared to 141,192 who arrived; thus, the negative balance is 24,083
people.
The desire to leave their home country was expressed by Armenian
respondents participating in a poll of international research center
Gallup World, which was conducted among citizens of 12 former Soviet
countries, Novosti-Armenia reported on April 4.
Thus, 40 percent of Armenian respondents said they wanted to leave the
country permanently.
The Armenian government, however, appears to lack an intention to
change the situation for the sake of its people by leaving the country
sidelined from regional projects because of the invasion policy
against Azerbaijan, occupying the country's Nagorno-Karabakh and seven
other regions, and fueling tension with neighboring countries.
AzerNews, Azerbaijan
April 19 2013
20 April 2013, 00:17 (GMT+05:00)
By Sabina Idayatova
Armenia's national debt amounted to $3.738 billion or about 38 percent
of the GDP in late 2012, acting Finance Minister Vache Gabrielyan said
at a government meeting on Thursday, local media reported.
Gabrielyan said the bulk of the debt consists of direct liabilities of
the government and some $594 million are the liabilities of the
Central Bank of Armenia (CBA).
A media report suggests that the Armenian banking system has faced a
crisis related to the credit system.
The main problem is the inability to repay loans borrowed earlier from
banks. The banks hope that the central bank will find major sources of
funds for investment in the financial system.
The banking problem is further exacerbated by the bankruptcy of the
Armenian airline Armavia. The company recently declared bankruptcy
after its debt to various banks reached $50 to $60 million.
The current deplorable economic situation facing the country is
forcing people to leave their homeland. Thus, the number of emigrants
from Armenia continues to exceed the number of immigrants.
165,275 people left Armenia in the first quarter of this year,
compared to 141,192 who arrived; thus, the negative balance is 24,083
people.
The desire to leave their home country was expressed by Armenian
respondents participating in a poll of international research center
Gallup World, which was conducted among citizens of 12 former Soviet
countries, Novosti-Armenia reported on April 4.
Thus, 40 percent of Armenian respondents said they wanted to leave the
country permanently.
The Armenian government, however, appears to lack an intention to
change the situation for the sake of its people by leaving the country
sidelined from regional projects because of the invasion policy
against Azerbaijan, occupying the country's Nagorno-Karabakh and seven
other regions, and fueling tension with neighboring countries.