Armenia’s debt soars despite rapid economic growth claims, ex-MP warns

Former MP Armen Yeghiazaryan reports that on March 12, Armenia issued bonds worth $750 million, which have now been placed on the international market. The bonds carry a 10-year term with a yield of 6.75%.

"Simply put, Armenia is asking investors to lend it money at an interest rate of 6.75% for a decade, backed by state guarantees. As a result, the country's national debt of $12 billion will increase by another $750 million," he wrote on Facebook on Saturday.

He questioned how Armenia's debt could be soaring despite government claims of rapid economic growth. "Could it be that this growth also includes corruption and kickbacks?" he asked.

Yeghiazaryan warned that the burden of repaying the national debt would not fall on the government but on the people and future generations.