Next year Armenia’s external debt will reach 50% of GDP, up to 46%, said the RA Finance Minister Tigran Davtyan at the Dec.29 press conference.

According to him, in 2010 Armenia will get a credit of €100m from EU as a full public budget loan, of which €35m as a grant. Another €120m trade loan intended for diamond processing is expected from Russia. “Most probably it will not be included in state debt, as it goes to the public sector and the country merely assists its receiving,” the minister stated.

Speaking of the budget expenses of AMD 93bn for the forth quarter, Davtyan outlined that though they were carried forward, but are temporarily stopped. Instead, the critical works for as much as AMD 50bn are carried out in other fields, Davtyan added. In particular, AMD 24bn went to disaster area, AMD 15bn–to paid to the businessmen as VAT returns.

Tigran Davtyan compared Armenian economy with turbulence zone having one of the engines packed up (construction), outlining that the authorities managed to lead out of the hazard zone our plane and all “passengers” came out unharmed.

S.T.