YEREVAN. – The external debt of Armenia grew by $900 million, from 2014 to 2016.

The newly appointed Minister of Finance, Vardan Aramyan, stated the aforesaid at a press conference on Tuesday.

As per Aramyan, the Armenian government increased its budget deficit and took on a new debt so as to withstand external “shocks.” One of them, according to the minister, is the drop in world metal prices, and the other—the economic difficulties in Russia, and devaluation of the Russian ruble.

Vardan Aramyan added that remittances to Armenia have reduced by $700 million, between 2014 and 2015, and another $140 million-drop is expected in the current year.

The finance minister stressed that the Armenian government has increased spending in order to counter the reduction in the inflow of currency and the drop in demand.

Vardan Aramyan explained, however, that had it not been for adding to its external debt, there would have been zero, or even negative, economic growth in Armenia.