Video: Suppose a person has a $50,000 debt, but receives a $45,000 salary - Pashinyan provided an example

Today, we have a very positive situation where the ratio of public debt to GDP is 50 percent. This was announced by Armenian Prime Minister Nikol Pashinyan during a government meeting on November 24.

“This is, to put it mildly, a positive indicator. Is this the result of exchange rate changes? Of course, exchange rate changes play a role, but we can gladly note that this largely depends on the quality of public debt management. Now many are speculating, saying, 'Oh no, Armenia's public debt has reached 7 billion.' Seven billion? How many billions has it become?” Pashinyan asked the Minister of Finance.

“At the end of this year, it will be slightly above 10 billion,” responded Tigran Khachatryan.

“Yes, 10 billion and so forth, that figure is not significant; what matters is the scale of public debt to GDP. Suppose this person has a $50,000 debt. Oh my, how will it be, how will it be; suppose this person receives a $45,000 salary each month, for him, a $50,000 debt is not a problem. Our issue is not whether our debt is 10 or 15 billion, our issue is that our debt does not increase in relation to GDP, but rather decreases,” Pashinyan said.

In turn, Tigran Khachatryan informed that it is anticipated that by the end of 2023, the ratio of public debt to GDP will be 49 percent.