Azernews.Az

By Mushvig Mehdiyev

The amount of external debts of Armenia has hit the record high as statistical data showed sharp increase of the figure over the past ten years.

"The continuous increase of the external debt may end up in insolvency," Deputy Head of the Heritage party, Armen Martirosyan believes.

He noted that authorities have taken a milliards of debts on their shoulders, however, nothing has actually changed in the country.

The European Union has announced plans to provide Armenia with up to $220 million financial aid over the next three years. The EU's executive body, the European Commission, said on September 8, 2014 that the "indicative allocation" will be part of broader aid to countries within European Neighborhood Policy.

The Asian Development Bank confirmed $49 million loan to Armenia on September 20, 2014. The bank noted that the loan targets promotion of stability in water supply and road fields in the post-Soviet country.

Index Mundi, the source which contains detailed country statistics, charts, and maps, reported Armenia's external debt is $7.839 billion as of December 31,2013. The source shows the external debt of the South Caucasus state has surged from $0,91 billion in 2004 to roughly $8 billion in 2014.

The World Bank allocated $15 million to Armenia in August, 2014. The loan is considered for educational reforms in the country.

Armenia's Economic Development and Research Center reported that the current external debt of the country is the highest of all time, as it has skyrocketed over the last years.

The economy of Armenia is deprived of foreign investment due to unfavorable business conditions. Oligarchic monopoly dominating in the country blocks the way of progress to impede a healthy competition. As well as the troublous economy, which is fueled by the deepening crisis, urges Armenian government to look for money from outside.

Martirosyan said he was very worried about increasing external debts of Armenia.

He noted that no change will happen in authority's approach until the power changes in Armenia. "Each authority is the continuation of the previous one, only the faces change."