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"There is a real risk that the Armenian economy may occur on the brink of default," Armenia's former Ambassador to the Holy See Mikayel Minasyan wrote on his Telegram channel, commenting on the current state of affairs in economy. "The service of foreign debt is increasing day by day with higher loan repayment rates. This means, Armenia will be unable to not only borrow new debt, but international financial institutions may also request direct control of the country's economy," according to Minasyan.  

"A month ago, the government issued new Eurobond worth $750 million, thus increasing the public debt by 10%. These funds were envisaged to spend on economic activity and growth, increase the GDP, but as it turned out, the funds were envisaged to pay salaries and  bonuses to officials. After the change of the power in Armenia, the country's national debt rose by 2.3 billion USD. By the end of the year, the state debt will exceed the established ceiling and reach 70% percent of GDP," Minasyan wrote.

The former Ambassador reminded that the Armenian legislation establishes debt ceiling of 60% of GDP, while at present the state debt is around 65-66% of GDP. In his words, the national debt has thus crossed the established upper level of the debt.

Minasyan also reminded that 70% of the total debt is in foreign currency which poses another risk as the exchange rates are fluctuating. "At present, every citizen of the Republic of Armenia has a real debt of 2,960 USD. The citizens of Armenia pay a high price for  Nikol's mistakes, including financially. They pay high price in place of their children, leaving huge debts and a country with uncompetitive economy to future generations," Minasyan concluded.