MP: Armenian authorities servicing foreign debt with new loans

Armenian MP Artur Khachatryan from the opposition faction "Armenia" has criticized the government for changing its strategy in managing the country's external debt, leading to less oversight over how funds are spent.

Khachatryan explained that the structure of Armenia's external debt has shifted from primarily programmatic loans, which are tied to specific projects, to budget support loans, Caliber.Az reports, citing Armenian media.

He stated, "Previously, the debt structure was dominated by programmatic loans, which were allocated for specific projects. Now, there is an increasing reliance on budget support loans." These new types of loans, he noted, "are more expensive, have shorter terms, and are virtually uncontrolled."

He highlighted that programmatic loans, such as those from the Asian Development Bank, World Bank, and European Bank for Reconstruction and Development, had significant oversight and clear anti-corruption measures. Khachatryan expressed concern that this shift suggests a strategy where the government "is servicing old debts by taking on new ones."

He pointed out that in the first quarter of the current year, the government spent 125 billion drams solely on servicing external debt.

He also criticized the government for allocating 2.4 billion drams for updating vehicles for government officials, despite the country's high level of debt.

"They understand that no power is eternal, so they are energetically spending public funds on their comfort and pleasures," he said, adding that considerable amounts are also spent on entertainment events like festivals.