There is no indicator of delinquency in financial world, the Head of WB office in Yerevan Aristomene Varoudakis said at the press conference.

According to him, the repayment depends not only on accruals, but also other factors such as terms of interest rate maturity, export volume and tax proceeds of the country. In this context, Armenia has two blots: light tax proceeds, making 17% of GDP and low level of economy diversification based on two branches — capital building and ore-mining industry. Varoudakis underlined that current foreign debt amount is not risky and as WB forecasts will cut within next years.

“However, everything depends on tax proceeds, as public debt in Armenia is medium-term and the republic should start redemption in the coming years,” emphasized Varoudakis. He also pledged to provide Armenian Government with every support in rescheduling it foreign debt. “We would support Armenian Government’s initiative in rescheduling its non-soft credit into soft,” the Head of WB Yerevan office stated. Varoudakis recalled that both interest rates and terms of WB credits are overall favorable to Armenia unlike Russian ones.

Presently Armenia’s foreign debt totals 37% of GDP, at that by 2011 it will increase by half. “The trouble is non-preferential debts make the major part of Armenia’s credits,” he stated. According to Varoudakis, Armenia has 7-10 years for payback. “We hope that within this period Armenia will succeed in diversification of its economy and settle its debts,” he concluded.

A.G.