ArmInfo. By the end of June 2024, Armenia had increased its dram debt to almost 50% of government debt. At the same time, public debt in dollar terms crossed another psychological mark of $12 billion 157.2 million (from $11 billion 845.4 million by the end of 2023). In dram equivalent, the figure decreased from 4 trillion 794.9 billion to 4 trillion 718.9 billion.
In particular, according to the Ministry of Finance of the Republic, over the 6 months of 2024, government debt in American currency increased from $11 billion 294.6 million (404.79 drams per $) to $11.649.2 billion (388.16 drams per $), and in drams decreased - from 4 trillion 571.9 billion to 4 trillion 521.8 billion drams. 85.1% of government debt was raised at a fixed interest rate.
At the same time, external debt (Armenia's debt obligations to international organizations and foreign states, funds received from the issue of Eurobonds) decreased both in dollars and in national currency: in dollar terms from $5 billion 950.7 million to $5 billion 737.8 million , in drams - from 2 trillion 408.9 billion drams to 2 trillion 227.2 billion drams.
Domestic debt increased both in dollars and in national currency: from $5 billion 343.9 million to $5 billion 911.4 million and from 2 trillion 163.2 billion drams for 2023 to 2 trillion 294.6 billion drams.
The Central Bank's debt also decreased: in dollars from $550.8 million to $508 million, in drams from 223 billion drams to 197.24 billion drams.
By the end of June this year. the share of domestic debt in government debt increased from 47.3% by the end of 2023 to 50.7%, and dram debt increased from 45.9% to 49.4% by the end of last year.
For January-June 2024, the volume of financing the budget deficit through net borrowing amounted to 76.2 billion drams (287 billion drams for the entire 2023, and the annual program for 2024 is 490.8 billion drams). 128.4 billion drams were raised from internal sources (net proceeds from the placement of government treasury bonds), 52.2 billion drams from external sources, with an annual program of 350.8 billion drams and 140 billion drams, respectively. 153.5 billion drams out of 345 billion drams planned for the entire 2024 (256.4 billion drams in 2023) 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 37.8% of the RA public debt. The second largest creditor is the Asian Development Bank - 19.6%, followed by the Eurasian Development Bank - 8.3%, followed by the International Monetary Fund - 5.3%, and the European Investment Bank - 3.2%. External loans from the EU in the structure of external debt amounted to 1.6%, the International Fund for Agricultural Development - 1.1%, the OPEC Fund for International Development - 2%, the EBRD - 0.9%. Among the major creditor countries, the Russian Federation is in first place - 6% (6.2% by the end of 2023), Germany - 5%, Japan - 2.8%, France - 5.4%, China - 0.4%, and the USA - only 0.2% of external debt government. Forecasts of financial authorities
According to the Ministry of Finance, in 2023, Armenia increased its public debt by 11.4% or $1 billion 207.6 million - up to $11 billion 845.3 million. During the reporting period, government debt in American currency increased by $1 billion 208.3 million. or by 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% - to 4 trillion 571.9 billion drams.
According to the law "On the State Budget of the Republic of Armenia for 2024", the public debt by the end of this year. will reach 5 trillion 314 billion drams (50.5% of GDP), 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). In 2024, the government will need 805.2 billion drams to repay and service the debt, of which 483.0 billion drams will be debt repayment, and 322.2 billion drams will be interest payments.
