YEREVAN, March 13. /ARKA/. Armenia’s growing domestic debt carries a serious risk of default, economist Vilen Khachatryan told journalists today. According to official data, Armenia's aggregate state debt is approaching the $6 billion mark, which is a source of serious concern, as the debt increase is disproportionate with the economic growth.

According to the ministry of finance, the total state debt of the country at the end of February stood at $5.961.2 billion. The economist noted that the increasing domestic debt and payment of interest also carries high risks. In his words, the domestic debt has reached an unprecedented level, exceeding $1 billion, while interest payments grew by 600%.

"Armenia has never paid as much interest on domestic debt. This may mean that international lending organizations no longer wish to provide loans to Armenia, as we have approached the ceiling of the national debt. Therefore, the state has to borrow from the population, which is much more expensive than external loans," he said.

Categories: Bonds.am @en @en, General news, News, News of the hour, Новости | Comments Off on Increasing domestic debt carries the risk of default- economist says

Tags: Armenia, domestic debt

Read more