29.03.2021 14:03
YEREVAN, March 29, /ARKA/ The impact of the twin Covid-19 pandemic and conflict shocks saw Armenian government indebtedness reverse its prior downward trend, with general government debt/GDP rising 13.8pp to 67.3% at end-2020, overtaking the current 'B' median (63.8%), Fitch Ratings said last week after affirming Armenia's Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) at 'B+' with a Stable Outlook.
'We forecast debt/GDP to peak at 67.6% at end-2021, before falling gradually to 63.5% by end-2025 as the government re-implements its medium-term fiscal rules and targets to reduce the metric to 60% by end-2026. Weaker growth due to economic scarring from the 2020 shocks and spending pressures to support the economy constrain the potential for faster public debt reduction. Foreign-currency denominated debt represents 77% of public debt ('B' median: 61%), increasing the country's vulnerability to dram depreciation.'
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