Armenia's Government will increase domestic state debt

For the three upcoming years the Government of Armenia will significantly increase its domestic debt instead of the foreign one, Armenia's Finance Minister Tigran Davtyan said at a Government session today as he unveiled the 2011-2013 strategy plan of debt management.

In his words by increasing the domestic debt the Government will minimize the risks related to foreign currencies, and for the coming three years the quantity of state bonds with 3-20 years term of payoff will be significantly increased.

Further he said that the Government will make sure that from 2011-2013 the credits obtained from abroad have privileged terms and a fixed interest rate. In his words the credits received in 2009 had floating interest rate which means that had some risks.

The Ministry of Finance plans state budget deficit to be 4.9 per cent in 2011, while in 2013 it will be already less - 4 per cent.
The ratio between the state debt and GDP will in 2011 be 48.5 per cent, in 2010 - 48.1 per cent, and 46.2 per cent in 2013.