ArmInfo.As of June 30, 2021, Armenia's public debt amounted to $ 8 billion 869 million. Thus, over 6 months, the indicator increased by $ 901 million, or 11.3%. It should be noted that over its 28-year history (since Armenia gained independence), the Republic of Armenia has attracted borrowings in the amount of about $ 6.8 billion, and over the past three years it has "managed" to increase the public debt by more than $ 2 billion.
So, at the end of December 2017, the total public debt of Armenia reached $ 6.774 billion, and by the time the new government was formed, at the end of April 2018, this figure was $ 6,867 billion. By the end of 2018, the public debt increased to $ 6,922 billion, 2019 - up to $ 7,321 billion. By the end of 2020, the public debt increased by $ 647 million - up to $ 7.968 billion, of which $ 7.509 billion is government debt (external debt - $ 5.593 billion, and domestic debt - $ 1.915 billion). Meanwhile, according to the approved state budget, in 2020 Armenia planned to attract 171.6 billion drams or $ 360.2 million (the estimated exchange rate of the US dollar to the Armenian dram is 476.46), but due to the pandemic and the war, the figure almost doubled.
In particular, if the ratio of government debt to GDP by the end of 2019 was 49.9%, then by the end of 2020 the level of government debt to GDP reached 63.5%. As a result, Armenia "went beyond" the limits allowed by law. To recall, the country's fiscal rules allow for an increase in the indicator to 60% of GDP, and if the rules are violated, they oblige the Armenian government to submit a draft macro and fiscal measures that will allow the republic to return to 60% within the next 5 years.
How much does Armenia owe and to whom?
In January-June 2021, according to the Ministry of Finance of Armenia, the government debt increased by $ 893 million, and the external debt (Armenia's debt obligations to international organizations and foreign states, funds received from the emission of Eurobonds) by $ 610 million. In particular, on January 26 This year, Armenia has placed among international investors the 4th issue of 10-year debt securities in the amount of $ 750 million. The established annual yield of the bonds of the 4th issue turned out to be lower than the yield of the 3rd issue - 3.875% versus 4.625%.
Over the six months, domestic debt increased by $ 282 million, or 14.8%, to $ 2 billion 191 million.
During the reporting period, the state debt of Armenia in dram terms increased by 229 billion drams or 5.5% - up to 4 trillion 393.5 billion drams (75.1% of the state debt is denominated in foreign currency).
Meanwhile, according to the forecasts laid down in the basis of the state budget for the current year, as of December 31, 2021, the government debt was planned at around 4.522 billion drams or $ 8.551 billion - 66% of GDP. Accordingly, 480.4 billion drams were planned for the repayment and servicing of the government debt of Armenia (the estimated exchange rate of the Armenian dram to the dollar is 493.76 drams).
For January-June of this year alone, 87.1 billion drams were allocated to pay interest rates on the state debt. The largest creditor of Armenia is the World Bank - the share of the International Bank for Reconstruction and Development and the International Development Association account for 38.6% of the state debt of the Republic of Armenia. The second major creditor is the Asian Development Bank - 16.8%, the third place is held by the International Monetary Fund - 7.6%, followed by the Eurasian Development Bank with 7%.
Among the large creditor countries of Armenia, the Russian Federation is in first place - 7.5% of the public debt, Germany - 5.9%, France - 3.2%, Japan - 4.6, and the USA - only 0.3% of the public debt of the Republic of Armenia.
