Armenia will not have problems servicing external loans

Armenia’s Finance Minister Vache Gabrielian thinks that his country has no problems in servicing its external loans. In 2010, the country’s external debt reached USD 3. 795 bln. This is 44.4% of the GDP. In the coming years the proportion will not increase and will not reach the critical boundary of 50% of GDP. According to the minister, from 2013 the level of foreign debt will start to decrease.

The Armenian government has announced huge infrastructural projects being financed from abroad. These include a nuclear power station and the construction of the Iran-Armenian railway line. However, the Minister claimed that there are different ways of financing these projects and they will not necessarily consider the increase of foreign debt. In 2013, Armenia will have to pay USD 500 mln for to service its foreign debts. The Minister insists that the country will not have any problems in doing so. Meanwhile, inflation by the end of 2010 came to 9.4%. The minister predicts that by the end of this year inflation will not be more than 5.5%. Concerning the budget of last year, the budgetary revenues slightly exceeded the amount forecast.