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Re: Armenia's Economic Pulse
Armenia’s total public debt grows by 5.4% to over $4.6 billion
YEREVAN, July 31. / ARKA /. Armenia’s total public debt at the end of June 2015 stood at $4.680.2 billion, an increase of 5.4% from the beginning of the year, according to the latest numbers, released today by the National Statistical Service (NSS). It said the public debt grew by 1% in June alone.
The nation’s external debt at the end of the first half amounted to $3.986.1 billion, an increase of 0.99% from the May. About $3.556.2 billion of the external debt was owed by the government, which rose by 1.24%. The Central Bank’s external debt stood at $429.9 million.
The domestic debt was worth $694.1 million, an increase of 1.6%.. Of that amount about $609.9 million were owed by the government to resident buyers of bonds. The debt in foreign currency stood at $80.1 million. Also $2 million were owed as loans and borrowings and another $2 million as domestic guarantees.
I saw a lot of posts over the past week or so about government debt, and I didn't get a chance to respond because I was in Western Armenia with very subpar internet. The level of debt in Armenia is still in a manageable range, and the government has experience dealing with this from the previous crises. I'm actually surprised because I thought the overall increase in debt would have been larger after the first six months given the poor economic indications that are coming out.
It is indeed disappointing to see it grow given the work it took to get it down form 2010-13, but it's a necessary step that is a direct result of the economic situation in the region. Without the stimulus the country would be in a place of much more significant instability. But it's obvious you can't keep borrowing to make up for the shortfall, so the overall economic situation needs to improve quickly.
Also as far as borrowing for infrastructure, I know it's never great to be indebted to these groups like the WB or IMF, but these are crucial projects that Armenia desperate need, which can dramatically alter the economic landscape of the country once they are completed. Anyway, we don't have to worry about further borrowing. These organization aren't giving loans at the moment for things like the Southern Armenia railway, until Armenia is finished paying for some of the other infrastructure
Armenia’s total public debt grows by 5.4% to over $4.6 billion
YEREVAN, July 31. / ARKA /. Armenia’s total public debt at the end of June 2015 stood at $4.680.2 billion, an increase of 5.4% from the beginning of the year, according to the latest numbers, released today by the National Statistical Service (NSS). It said the public debt grew by 1% in June alone.
The nation’s external debt at the end of the first half amounted to $3.986.1 billion, an increase of 0.99% from the May. About $3.556.2 billion of the external debt was owed by the government, which rose by 1.24%. The Central Bank’s external debt stood at $429.9 million.
The domestic debt was worth $694.1 million, an increase of 1.6%.. Of that amount about $609.9 million were owed by the government to resident buyers of bonds. The debt in foreign currency stood at $80.1 million. Also $2 million were owed as loans and borrowings and another $2 million as domestic guarantees.
I saw a lot of posts over the past week or so about government debt, and I didn't get a chance to respond because I was in Western Armenia with very subpar internet. The level of debt in Armenia is still in a manageable range, and the government has experience dealing with this from the previous crises. I'm actually surprised because I thought the overall increase in debt would have been larger after the first six months given the poor economic indications that are coming out.
It is indeed disappointing to see it grow given the work it took to get it down form 2010-13, but it's a necessary step that is a direct result of the economic situation in the region. Without the stimulus the country would be in a place of much more significant instability. But it's obvious you can't keep borrowing to make up for the shortfall, so the overall economic situation needs to improve quickly.
Also as far as borrowing for infrastructure, I know it's never great to be indebted to these groups like the WB or IMF, but these are crucial projects that Armenia desperate need, which can dramatically alter the economic landscape of the country once they are completed. Anyway, we don't have to worry about further borrowing. These organization aren't giving loans at the moment for things like the Southern Armenia railway, until Armenia is finished paying for some of the other infrastructure
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