Government Debt of Armenia Assessed as Low Risk

The Ministry of Finance of Armenia has published a working document summarizing the analysis of the stability of the government debt for the year 2019. Within this framework, specialists conducted multi-faceted assessments of the stability of government debt and analyses of the risks threatening it.

The results of the analysis have shown the following:

Overall, the Armenian government debt is stable and falls within a manageable domain. A key role in this is played by the policy aimed at reducing the debt burden, based on a new system of fiscal rules.

According to internationally accepted methodologies (developed by the International Monetary Fund and the World Bank), the Armenian government debt is assessed as low risk.

In the structure of the government debt, the shares of foreign currency debt and debts owed to non-residents are considered risky, but at the same time manageable.

The implementation of the measures planned in the strategic documents of the government's fiscal policy will help mitigate the risks of debt stability.

The analysis can be found at the following link.