45 out of 150 billion budget deficit filled through intrinsic debt release

45 out of 150 billion budget deficit filled through intrinsic debt release

“We have always said that we should be targeting the sustainable economic growth, so we have to work hard towards the development of the capital market”, said the Minister of Finance Vardan Aramyan at a briefing with journalists after the government session. According to him, if we have a capital market, if we have businessmen who enter the capital market, this means that they are more transparent, more competitive and better able to handle their financial flows.

“There is also the second important factor: if your debt market, which is a segment of the capital market, is not deep and liquid, it could be an obstacle for the development of other sectors of the capital market. We have a plan together with the Central Bank, and we will make parallel efforts to achieve the goal.

Now the first step, that with the regard of the inner market debt, the primary auctions, which are now implemented in the platform of Central Bank, we take to exchange.”As for the fact whether this step will increase the intrinsic debt, Aramyan said that the intrinsic debt would increase, since we have and will have a deficit budget throughout the upcoming years. “The question is whether the intrinsic or extrinsic debt is better, in equal conditions the intrinsic debt is better”.

According to Aramyan, the budget deficit is 150 billion in 2017, “And the activities that we will carry out, including the capital expenditures through the tax-increase, will not result in increase of the deficit. The 45 billion out of 150 billion budget deficit will be filled through the release of the intrinsic debt.” Aramyan said that this year they expect also 3.2 % economic growth, and tend to more than 3.2 % growth. According to the Minister, nowadays the index of the economic activity is 6.2%. Although, it is possible to be a little lower after adjustment, the Minister is sure that during the year they will overcome the 3.2%.



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