Monday, January 22 2024 18:41

ArmInfo. In 2023, Armenia's public debt increased by 11.4% or 1 billion 207.6 million dollars to  11 billion 845.3 million dollars.

According to the debt repayment schedule of the government until  2054,  Armenia should allocate about 1.7 billion dollars in 2024 for  the repayment and maintenance of the state debt formed by the end of  2023 (excluding the debt of the Central Bank of Armenia), more than  $1.8 billion - in 2025, about $1.4 billion -in 2026, the amount will  be slightly more than $1.5 billion -in 2029, and about $1.8 billion-  in 2031.  According to the RA Ministry of Finance, in terms of the  appreciation of the national currency (the American dollar began its  almost 20% " decline " approximately in mid-2022), the public debt in  dram terms increased by 14.5% or 608.2 billion drams - up to 4  trillion 794.9 billion drams.

During the reporting period, government debt in American currency  increased by $1 billion 208.3 million or 12% - from $10 billion 086.4  million by the end of 2022 to $11 billion 294.6 million, and in drams  - by 602.3 billion drams or 15.2% - up to 4 trillion 571.9 billion  drams. 15.9% of government debt alone was attracted at a fixed  interest rate (16.5% at the end of 2022 and 17.1% at the end of  2021).

Armenia's external debt (Armenia's debt obligations to international  organizations and foreign states, funds received from the issue of  Eurobonds) in dollar terms increased by $56.6 million (1%) - to  approximately $5 billion 950.7 million, in dram terms - by 89.1  billion drams or 3.8% - up to 2 trillion 408.8 billion drams.   Domestic debt increased by $1 billion 151.6 million (27.5%) - from $4  billion 192.3 million (1 trillion 650 billion drams) to $5 billion  343.9 million (2 trillion 163.2 billion drams).

The Central Bank's debt increased in dollars and decreased by 0.1% or  $0.6 million - from $551.3 million or 217 billion drams (the increase  in drams was 2.7%) to $550.7 million or 222.9 billion drams. As of  the end of 2022, the amount of loans provided with state guarantees  decreased from $87.1 million or 34.3 billion drams to $77.2 million  or 31.2 billion drams.

By the end of 2023, the share of domestic debt in government debt  increased from 41.6% by the end of 2022 to 47.3%, and dram debt  increased from 37.9% to 45.9% by the end of 2022.

Good debt is repaid debt.

During the 12 months of 2023, the amount of financing the budget  deficit through net borrowing was 287 billion drams (for the whole  year 2021: 591 billion drams, and the annual plan for 2023: 345.1  billion drams). 360.3 billion drams were received from internal  sources (allocation of state treasury bonds), 73.3 billion drams from  external sources, according to the annual plan, respectively, 384.9  billion drams and 39.8 billion drams.

253.4 billion drams out of 256.4 billion drams planned for the entire  2023 (181.6 billion drams for 2021) were allocated to service the  government debt (payment of interest rates).

Creditors of Armenia

The largest creditor (external loans) of the Armenian government  remains the World Bank - the International Bank for Reconstruction  and Development and the International Development Association account  for 37.1% of the RA government debt. The second largest creditor is  the Asian Development Bank - 18.7%, the Eurasian Development Bank is  in third place- 7.8%, followed by the International Monetary Fund -  6.9%, and the European Investment Bank - 3.1%. External loans from  the EU within the external debt amounted to 1.6%, the International  Fund for Agricultural Development - 1.1%, the OPEC Fund for  International Development - 2%, the EBRD - 1%.

Among the major creditor countries, the leader is the Russian  Federation with 6.2%, followed by Germany with 5.3%, Japan with 3.1%,  France with 5.4%, China with 0.4%, and the United States with 0.2%.

Financial authorities forecasts 

According to the law "On the State Budget of the Republic of Armenia  for 2024", the state debt will amount to 5 trillion 314 billion drams  (50.5% of the GDP) at the end of this year, instead of 4 trillion 659  billion drams expected by the end of 2023 (49.3% of GDP), and 4  trillion 659 billion drams actual for 2022 (49.2% GDP). The  government's debt will amount to 5 trillion 082.9 billion drams  (48.3% of GDP) or $11 billion, 892 million, against 4 trillion 446.1  billion (47% of GDP) or $10 billion 910 million expected at the end  of 2023 and 3 trillion 969.7 billion drams or $10 billion 086 million  - for 2022 (46.7% of GDP). To repay and service the debt in 2024, the  government will need 805.2 billion drams, of which 483.0 billion  drams will be debt repayment, and 322.2 billion drams will be  interest payments.

At the same time, as head of the Ministry of Finance Vahe  Hovhannisyan said on December 22 in parliament, presenting the  corresponding draft decision, after the Armenian government assumes  most of the financial obligations of the government and citizens of  Nagorno-Karabakh, the government debt by the end of 2023 in relation  to GDP will increase by 2.4 p.p. - up to 49.4%.