Armenia’s foreign debt increases

By 2011 Armenia’s foreign debt will be 40-45% of GDP. Despite this the IMF is sure that Armenia will be able to pay back these debts. In March this year the IMF representation in Armenia thought that around USD 540 million would be enough for this purpose but the situation has deteriorated and now Armenia is receiving USD 823 million to make itself debt-free.

A major reason for the decline in Armenia’s economy is that it is a small country and if 2 or 3 enterprises close this affects the whole picture. Armenia’s economy also depends greatly on money transfers from Russia, and problems in Russia automatically create problems in Armenia.