Government debt may increase to 67 percent of GDP. loans should be involved in highly effective projects; Deputy

by times news cr

2024-09-11 11:10:34

At today’s session of the Parliament, the “Caucasian Power Transmission Network III (Phase 2 of the project)” signed between the Republic of Armenia and the Reconstruction Loans Bank on July 1, 2020 was discussed. Armenia-Georgia transmission line/substations” loan agreement extension and modified repayment schedule” letter-agreement draft.

As Arkady Khachatryan, deputy of the “Bright Armenia” faction, mentioned in his speech, only he had reservations about the project in the committee.

“In 2017, a decision was made to suspend this program on the grounds of considering it inappropriate and problematic in terms of redemption and in order not to add an additional burden on the public debt. There was a proposal to address that issue as a result of finding new technical solutions, optimizing costs, which would lead to the fact that the program would become more effective in terms of repurchase,” said the deputy.

At the same time, Arkady Khachatryan noted that at the moment it is stated in the rationale of the agreement that it is presented with the technical solutions of the previous agreement.

“According to the revised indicators of this year’s state budget, it is planned that the government debt may increase to 67 percent of the GDP. In other words, at this moment, the loans should be attracted, the expenses should be carried out along the lines of absolutely extremely effective programs, which are very necessary in terms of the country’s economic development. I believe that the extension of this agreement with this editing is not appropriate at this time,” the parliamentarian emphasized.

Nevertheless, Arkady Khachatryan highlighted the issue of reconstruction of the electricity grid in Ddmashen in the program.

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