Armenia's national debt tops $4.2 billion
By Sabina Idayatova
Armenia's national debt amounted to $4.205 billion as of March 31, 2013, Deputy Minister of Finance Atom Janjughazyan has said.
He said that the government debt accounts for around $3.660 billion and debt of the central bank is about $546 million.
Foreign debt amounts to $3.051 billion, while domestic arrears are worth $609 million.
Janjughazyan predicted that by late 2013 the total national debt of Armenia will amount to $4.394 billion or about 42.9 percent of GDP, including the internal debt in the amount of $667 million or about 6.5 percent of GDP and the external debt worth about $3.203 billion, or 31.3 percent of GDP.
In April, acting Finance Minister Vache Gabrielyan said at a government meeting that Armenia's national debt amounted to $3.738 billion or about 38 percent of GDP in late 2012.
Gabrielyan linked it with the bulk of the debt consisting of direct liabilities of the government and some $594 million are the liabilities of the Central Bank of Armenia.
A recent media report suggests that the Armenian banking system has faced a crisis related to the credit system. The main problem is the inability to repay loans borrowed from banks. The banks hope that the central bank will find major sources of funds for investment in the financial system.
The banking problem is exacerbated by the bankruptcy of the Armenian airline Armavia. The company recently declared bankruptcy after its debt to various banks reached $50 to $60 million.