The amount of foreign debt in Armenia's total debt will decrease during 2023. Finance Minister Tigran Khachatryan said this at Wednesday’s session of the National Assembly, during the debates on the draft 2023 State Budget of Armenia.
In particular, it is planned that the government's debt will amount to 4 trillion 645 billion drams, or 49.8 percent of the GDP, at the end of the year.
"Moreover, if the [US] dollar exchange rate remains lower [in Armenia], that indicator will also record a drop. In the draft of the 2023 state budget, it is proposed to set the deficit at 289 billion drams, or 3.1 percent of the GDP. Maintaining the 7-percent economic growth in the following years will enable the budget deficit to be set at around 2.5-3 percent of the GDP. On the one hand, it will allow to ensure sufficient funds for financing, on the other hand, it will reduce the level of debt to the GDP," said Khachatryan.
The government's debt will amount to 4 trillion 645 billion drams, or 49.8 percent of the GDP, at the end of 2023. The calculation of this indicator is based on the exchange rate of 436 drams for one US dollar.
“Therefore, if the real exchange rate is lower, that 49.8 percent will be lower. And if the actual exchange rate is 5-percent lower or higher than the indicated one, then the national debt to the GDP will remain within the limits of 48-51 percent. Moreover, during 2023, the amount of foreign debt will decrease; it will make up 57.6 percent of the total debt. At the end of this year, the share of foreign debt in the total debt amounts to 60.2 percent," the minister noted.
He emphasized that in 2018, the amount of foreign debt in the government debt was more than 78 percent. Khachatryan considered the 60 percent indicator planned for the next year a "significant improvement.”
"It is the result of the state policy of national debt management," summed up the representative of the government.