ArmInfo. By the end of October 2024, Armenia's public debt in dollar terms increased to $12 billion 632.8 million (from $11 billion 845.4 million by the end of 2023). In dram equivalent, the figure increased from 4 trillion 794.9 billion to 4 trillion 889.5 billion.
In particular, according to the republic's Ministry of Finance, over 10 months of 2024, the government debt in American currency increased from $11 billion 294.6 million (404.79 drams per $) to $12 billion 124.6 billion (387.05 drams per $), and in dram equivalent - from 4 trillion 571.9 billion to 4 trillion 692.8 billion drams. 85.7% of the government debt was attracted at a fixed interest rate (84.1% by the end of 2023).
At the same time, the external debt (Armenia's debt obligations to international organizations and foreign countries, 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 767.5 million, in dram terms - from 2 trillion 408.9 billion drams to 2 trillion 232.8 billion drams.
Domestic debt increased both in dollars - from $ 5 billion 343.9 million to $ 6 billion 357.1 million, and in national currency: from 2 trillion 163.2 billion drams for 2023 to 2 trillion 460.5 billion drams. The Central Bank's debt also decreased: in dollars from $550.8 million to $508.2 million, in drams - from 223 billion drams to 196.7 billion drams. By the end of October this year, the share of domestic debt in the government's debt structure increased to 52.4% from 47.3% at the end of 2023, and the dram debt increased from 45.9% to 51.4%.
A debt is paid with payment
In January-October 2024, the volume of budget deficit financing through net borrowing amounted to 246.7 billion drams (287 billion drams for the whole of 2023, and the annual program for 2024 is 488.6 billion drams). 315.9 billion drams were attracted from internal sources (net proceeds from the placement of government treasury bonds), 69.2 billion drams from external sources, with an annual program of 350.8 billion drams and 137.8 billion drams, respectively. 292.4 billion drams out of 345 billion drams planned for the whole of 2024 (256.4 billion drams in 2023) were allocated for servicing 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 37.7% of the RA public debt. The second largest creditor is the Asian Development Bank - 20.3%, the third position is occupied by the Eurasian Development Bank - 8.9%, followed by the International Monetary Fund - 4.5%, and the European Investment Bank - 3.3%. 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 first place is occupied by the Russian Federation - 5.6% (6.2% - by the end of 2023), Germany - 5.1%, Japan - 2.9%, France - 5.5%, China - 0.4%, and the USA - only 0.2% of the government's external debt.
Financial forecasts
According to the Ministry of Finance, in 2023, Armenia increased its public debt by 11.4% or $1 billion 207.6 million - to $11 billion 845.3 million. According to the law , the public debt will reach 5 trillion 314 billion drams (50.5% of GDP) by the end of this year. The government debt will amount to 5 trillion 082.9 billion drams (48.3% of GDP) or $11 billion 892 million. In 2024, 805.2 billion drams will be required to repay and service the government debt, of which 483.0 billion drams will be debt repayment, and 322.2 billion drams will be interest payments. However, according to the law on the state budget for 2025, by the end of 2024, the state debt is projected to be at the level of 5 trillion 272 billion drams, and the government debt is expected to be 5 trillion 038.5 billion drams ($12 billion 647.9 million) and 49.8% of GDP.
