Foreign Debt is Growing
13:05, June 13, 2013 | News
Even official statistics testify that S. Sargsyan is a failed president. Since 2008 after he became the sitting president, pursuant to the official statistics, 27,6 % of the population was poor, while today the number has increased to 35% which constitutes over 1 million and 50 thousand people. During his power, there has been a 5% drop of purchasing capacity in our country. Armenia’s foreign debt, which back in 2008 was 1 billion 700 million USD, has increased up to 1 trillion 508 billion or 3 billion 73 million USD. Today state debt- GDP ratio is 44,1%, while the risk threshold was assessed as 50%: However, analysts claim that the ratio has actually gone above and has reached to 75%. This rate is alarming not only in terms of it volume, but also by the fact that the ruling authorities have once again faked the actual numbers and hidden the country’s bankruptcy. The statistics released by the Government aren’t in line with those provided by the RA NSS, because according to the NSS, Armenia’s foreign debt is 7 billion 630 million USD instead of 3 billion 738 million USD(this doesn’t include foreign private debts).
If we trust official resources, then over 3274,3 thousand people reside in Armenia, hence, the debt per capita is 1300 USD. This is official statistics, while unofficial data indicate to debt of 2330 USD per capita, also including newborn children.
It should be added that the RA can only borrow money until 2014, which is limited to 500 million USD.
Question: What do you think to what serious economic or political dangers this habit of the Government to add to the existing debts is leading the country to?
Answer: The foreign debt of our country brings about serious concerns from the legal prospective. I must note that if GDP comes to the frontline for the service of foreign debts, it means that the country is bankrupt. Its consequences can be instability, chaos and dictatorship… In such cases only the role of foreign factors takes on significance. I think that this process is now underway in the form of mania for Russians and Europeans. Once we display willingness to have an autonomous, legal, social and democratic state, then we’ll continue surviving. And if not, the whole nation will have to rely on foreign support, and in his case on the insignificant menas provided by Russia, like a drug addict. This path is leading to death and the state’s end.
Artur Sakunts,
Human rights activist
www.armlur.am