Armenia's state debt swells from year to year
By Laman Sadigova
The state debt of Armenia has reached a new high, crossing the line of $5 billion, local media reported, citing the country’s finance ministry officials.
High state debt remains one of the most dangerous problems for Armenia, aggravating its its ill-conceived economy.The country entered the year of 2016 with a state debt of $5.71 billion.
The situation is really alarming in a small and weak post-Soviet country, which is a permanent borrower from international banks.
Armenia started 2015 with the debt amounted to $4.4 billion, which means that it increased this number by $629.5 billion.
Armenia’s external debt amounts to $3.8 billion of the total
sum, according to the newspaper.
“It’s noteworthy that Armenia accumulated $488 million of its
foreign debt only in the past year,” media reported. “The rapid
growth of the external debt began after the international economic
crisis of 2008. In the spring of 2008, i.e. prior to the crisis,
Armenia’s foreign debt constituted $1.55 billion, while at the end
of 2009, it reached $3 billion.”
What is concerning in this situation is that the borrowed money does not have any positive effect on the country’s economy, apart from considerably increasing fortunes of some officials.
The corrupt government still lacks any scenario to survive the economic crisis, while those in the state power are thinking of their private benefits continuing their aggressive policy with regard to regional neighbors.
Armenia keeps under control 20 percent of internationally recognized territory of neighboring Azerbaijan and ignores four UN Security Council resolutions on immediate withdrawal from the occupied lands.
Armenia also puts lays illegal genocide claims on Turkey, from time to time threatening with occupation of lands of this southern neighbor as well.
The present circumstances in Armenia do not surprise anyone as the aggressive and destructive policy of the Armenian government drove the country to the abyss, while the national economy is chronically ill.
The authorities only strengthened the monopolies through destroying small and medium businesses, instead creating functioning economic model not depending only on transfers.
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