Armenia has low debt burden – PM

YEREVAN, APRIL 27, ARMENPRESS. Armenia is a country with a low debt burden with its 46% debt-to-GDP ratio, Prime Minister Nikol Pashinyan said at the Cabinet meeting on April 27.

He said that the debt’s share in the national currency has increased while the debt in foreign currency has dropped. “This means that our state debt has become more resistant to currency risks within the framework of this process,” Pashinyan said.

The debt-to-GDP ratio decrease is due to the dram appreciation because most of the debt is in foreign currency, and on the other hand it has to do with the progressive economic growth pace. Moreover, the fact that the deficit was lower than projected also had impact.

“We could involve new amounts if the government were to reach that stance. The problem isn’t the debt, the problem is how we use the debt to increase the potential of our economic growth,” the PM added.

Pashinyan highlighted the use of debt for capital investments.

The debt-to-GDP ratio stood at 46,7% in 2022 against the projected 60,2%. The figure is a 13,6% drop compared to 2021. Armenia’s government debt stood at 10 billion 86 million USD as of December 31, 2022.