ARMENIAN EXTERNAL DEBT RISES IN Q1
World Market Research Centre
Global Insight
June 3, 2009
Armenia’s external debt at the end of the first quarter of 2009
reached $1US.789 billion, ARKA News reports quoting figures published
by the country’s National Statistical Service. This result marks
an increase of 15.3% in annual terms. Government obligations made
up a share of some 78% of total foreign debt, rising by 1.3% in
annual comparison. Most of this is owed to international financial
organisations, with the World Bank the most important creditor,
followed by the International Monetary Fund (IMF). Among Armenia’s
bilateral creditors, Germany is the most important. In addition, it
was reported that, at the same time, Armenia’s domestic debt gained
around 12%, totalling 96.1 billion dram ($260US million) at the end of
the first quarter. Short-term government bonds contributed to around
28.5% of total internal debt.
Significance:As domestic financial markets remain relatively
undeveloped, and access to international credit markets also limited,
most Armenian debt consists of external obligations to multilateral
lenders, approved on concessionary terms. Armenia has been badly hit
by indirect effects of the global financial and economic crisis, as
availability of foreign investment and remittances has considerably
suffered, leading to rising financial and economic risks (seeArmenia:
24 March 2009:). To cover its wide external financing gap, Armenia
has sought credit from the IMF and Russia, and these provide for
important liquidity support (seeArmenia: 21 May 2009: andArmenia:
9 March 2009: ).