Armenia may default in 2013: Opposition lawmaker warns

22.06.2012 19:16
Armenia may default in 2013: Opposition lawmaker warns

YEREVAN, June 22. /ARKA/. An MP from the opposition Armenian National Congress (ANC) warned today that in 2013 Armenia’s government may default. Hrant Bagratian, a former prime minister in the administration of first post-Soviet president Levon Ter-Petrosian, questioned the government’s figure that Armenia's external debt stands at about $4 billion, saying the real debt is $6.5 billion.

"In terms of external debt size Armenia is among the worst nations in the world and the government will default in 2013, if it does not take swift action to remedy the situation," Bagratyan said today.
He explained that the additional $2.5 billion are owed by the private sector, and the lion's share of this amount is owed by banks.

“The banking system is believed to be steady , but in case of problems, it is the government that will have to pay back their high-interest loans,’ he said.

Armenia’s foreign debt in the first quarter of 2012 increased by 1.8% (or $65.7 million) from the beginning of the year to $3.633.9 billion (1.419.5 trillion drams), according to the National Statistical Service. Some 82.6% of the debt or $3.002.6 billion were owed by the government, which grew by 1.7% or $51.7 million from December 30, 2011. The Central Bank’s debt stood at $631.4 million having increased by 2.3% or $14 million. It made 17.4% of the total debt. Some 70.4% of the debt or $2.557.2 million were owed to international lending institutions, which grew by 3.3% percent from December 30, 2011. Armenia’s debt to World Bank stood at $1.355.2 billion or 37.3% of the total debt. It grew by 1.4% from the previous quarter.

Armenia owed also $834.9 million to the International Monetary Fund (IMF), which made 23.0% of the overall foreign debt. Compared to the beginning of the year the figure represented a 0.9% rise.
Armenia owed also $167.8 million to the Asian Development Bank, slightly up from $165.3 million in the beginning of the year.

Armenia’s debt to the International Fund for Agricultural Development (IFAD) rose to $66.9 million from $66.3 million and its debt to OPEC Development Fund dropped by 1.2% to $28 million. Armenia also owed $500 million to Russia and $397.2 million to Japan. -0-


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