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The Borrowing Plan for 2020 was Presented
19.12.2019
The Borrowing Plan for 2020 was Presented

On December 19, a meeting was held at the Ministry of Finance with the participants of the financial market and representatives of international financial institutions, during which the borrowing plan for 2020 was presented.

 “It is in everybody's interest to show predictable behaviour and to avoid seeking situational interests in our long-term relationships as much as possible”, - Finance Minister Atom Janjughazyan said in the opening remarks.

Samvel Khanvelyan, Head of Operational Division of Public Debt Management Department of the Ministry of Finance, informed that the borrowing plan for 2020 was developed in accordance with the goals and guidelines set out in the Government's 2020-2022 Strategic Debt Management Program.

According to the forecasts of the 2020 state budget, as of the end of 2020 the debt of the Armenian Government will make AMD 3,419 billion (USD 7,177 million) and will increase by AMD 162 billion (USD 341 million) compared with the end of 2019.

In 2020, Government debt repayment and servicing will require AMD 448.7 billion, of which 280.6 billion will be debt repayments and 168.0 billion will be interest payments.

In 2020, the Government's weighted average debt interest rate will be 5.2% and Government debt servicing costs will make up 2.4% of GDP.

 “Financing the budget deficit in 2020 is planned to be implemented without the involvement of budget support loans, which can be said to be a novelty for the budget in recent years. The 2020 budget does not envisage any new loan agreement”, - said Artak Marutyan, Head of Accounting and Service Division of Public Debt Management Department of the Ministry of Finance.