Armenia`s Ministry of Finance preparing Eurobond tranche next year 

ArmInfo. <I am pleased to announce that in 2023 the Armenian government bought back part of the Eurobonds issued in 2015 with maturity in 2025, thereby mitigating the risks associated with co-financing in the future>, Finance Minister Vahe Hovhannisyan said at a final press conference on December 25.

That is, the burden that <lay on the shoulders> of the country has  been significantly eased, he added. In this regard, the financial  authorities do not see any problems with the full repayment of the  second tranche of sovereign bonds in the amount of $500 million  (Armenia issued the bonds on March 19, 2015 for a period of 10 years  and with an annual yield of 7.5% - ed.).

According to him, preparatory work is currently underway for a new  issue of Eurobonds.

The Strategic Program for Government Debt Management for 2022-2024,  approved by the decision of the Government of the Republic of Armenia  on July 12, 2021, stated that in 2024, Armenia plans to issue the  next and already fifth tranche of Eurobonds on the international  market. "The funds received from the issue of Eurobonds will be used  to buy back the bonds maturing in 2025," the document noted.

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 <On the state budget of the  Republic of Armenia for 2024>, 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.

Next year, Armenia's public debt will amount to 6 trillion 159  billion drams or 56.5% of GDP.

The government debt is expected to be 5 trillion 910.4 billion drams  ($13 billion 963.1 million) or 54.3% of GDP. In 2025, only 1 trillion  117.1 billion drams will be required to repay and service the  government debt, of which 723 billion drams will be repaid, 394.1  billion drams will be for interest payments. 3.6% of GDP will be  allocated to servicing the government debt.