Financial Crime World

Boosting Transparency in Debt Management: Armenia’s Efforts

Enhancing Financial Market Regulation and Oversight

Yerevan, Armenia - In an effort to strengthen financial market regulation and oversight, Armenian authorities are intensifying their focus on boosting transparency in debt management.

Major Issues Hindering Debt Transparency

According to Artur Hambardzumyan, Head of Strategy and Risks Management Division at Public Debt Management Department’s Regional Europe and Central Asia:

  • Incomplete coverage of public sector debt by legislation
  • Limited usage of financial and accounting standards

Armenia has established a comprehensive legal framework for public debt management, comprising:

  • Law on Public Debt
  • Civil Code of Armenia
  • Law on CBA
  • Other legal acts
  • International treaties

Compiling Public Debt Statistics

Public debt statistics are compiled based on the Government Finance Statistics Manual (GFSM) 2001 and National Framework. The Ministry of Finance is responsible for recording central government subsector external and domestic debt data.

Improving Debt Accounting and Reporting Systems

To ensure greater transparency, there is a need to improve debt accounting and reporting systems.

Debt Reporting

Armenia publishes:

  • Monthly reports on public debt
  • Quarterly reports on public debt
  • Annual reports on public debt, including information on:
    • Domestic and external central government debt
    • Loan guarantees
    • External debt of the Central Bank of Armenia (CBA)

Framework for Providing Guarantees

The Ministry of Finance is responsible for scrutinizing the financial situation before repayment of loans. The CBA is responsible for recording external debt taken on behalf of the state.

Improving Transparency through International Standards

Armenia is working to implement:

  • GFSM 2014
  • Accounting and Auditing Standards (APSAS) in Armenia

Additionally, the country is enhancing staff capacity building focused on debt recording, reporting, and management, and developing an adequate IT system supporting debt accounting and reporting.

Development of a New Financial Management Information System (FMIS)

The development of a new FMIS is underway, which will improve the country’s ability to manage and report on public debt.

Expected Outcomes

Armenia’s efforts to boost transparency in debt management are expected to:

  • Enhance investor confidence
  • Support sustainable economic growth