ArmInfo. Armenia's public debt in dollar terms increased by approximately $997 million by the end of December 2024, reaching $12. 842.2 billion (up from $11. 845.4 billion by the end of 2023). In dram equivalent, the debt rose from 4 trillion 794.9 billion to 5 trillion 092.7 billion. In particular, according to data from the Ministry of Finance of the Republic, over the 12 months of 2024, the government debt in US dollars increased from $11 billion 294.6 million (at an exchange rate of AMD 404.79per $/1) to $12 billion 338.2 billion (at AMD387.05 per $/1). In dram equivalent, the debt increased from 4 trillion 571.9 billion to 4 trillion 892.8 billion drams. The estimated exchange rate of the US dollar was AMD 396.56 per $/1 (compared to AMD 404.79 at the end of 2023).
84.4% of the government debt was attracted at a fixed interest rate (84.1% by the end of 2023). At the same time, Armenia's external debt which includes debt obligations to international organizations and foreign countries, funds received from the Eurobond issuance, has decreased in both dollars and national currency: in dollar terms from $ 5 billion 950.7 million to $ 5 billion 590.1 million, and in dram terms - from 2 trillion 408.9 billion drams to 2 trillion 359.6 billion drams.
Domestic debt has increased in both dollars, from $ 5 billion 343.9 million to $ 6 billion 388.1 million, and in the national currency, from 2 trillion 163.2 billion drams for 2023 to 2 trillion 533.3 billion drams. The Central Bank's debt also decreased, from $550.8 million to $508.2 million in dollars, and from 223 billion drams to 199.9 billion drams. By the end of December 2024, the share of domestic debt in the government debt structure increased to 51.8% from 47.3% at the end of 2023. Additionally, the dram debt increased from 45.9% to 50.8%.
The beauty of a debt is its payment or one good turn deserves another
In the period from January to December 2024, the volume of budget deficit financing through net borrowing amounted to 399.9 billion drams. This was an increase from the 287 billion drams borrowed in 2023, and it was below the annual program for 2024, which was set at 425.3 billion drams). 369 billion drams were sourced internally, primarily through the net proceeds from the placement of government treasury bonds. 30.9 billion drams were obtained from external sources, with an annual program of 350.8 billion drams and 74.5 billion drams, respectively. Out of 345 billion drams allocated for the entire 2024 (compared to 256.4 billion drams in 2023), 313.6 billion drams were dedicated to servicing the government debt (interest payments).
Creditors of Armenia
The World Bank remains the largest creditor of the Armenian government in terms of external loans, with the International Bank for Reconstruction and Development and the International Development Association accounting for 37.6% of the RA public debt. The second largest creditor is the Asian Development Bank - at 21.2%, the Eurasian Development Bank is in third place - at 8.4%, followed by the International Monetary Fund - at 3.4%, and the European Investment Bank - at 3.1%. The EU external loans make up 1.5% of the external debt structure, with the International Fund for Agricultural Development - at 1%, the OPEC Fund for International Development - at 3%, and the EBRD - at 0.9%. Among the major creditor countries, the Russian Federation is in first place - 5.3% (6.2% by the end of 2023), followed by Germany - at 4.5%, Japan - at 2.7%, France - at 6.7%, China - at 0.3%, and the United States at just 0.2% of the government's external debt.
Forecasts of financial authorities
According to the Ministry of Finance, in 2023 Armenia increased its public debt by 11.4% or $1. 207.6 billion , reaching a total of $11.845.3 billion . According to the law the public debt by the end of the year was expected to be 5. 314 trillion drams (50.5% of GDP), with the government debt at 5. 082.9 trillion drams (48.3% of GDP) or $11.892 billion. In 2024, it was planned to allocate 805.2 billion drams for the repayment and servicing of the government debt, with 483.0 billion drams for debt repayment, and 322.2 billion drams for interest payments.
However, according to the state budget law for 2025, by the end of 2024, the state debt was expected to reach 5 trillion 272 billion drams, and government debt was projected to be 5 trillion 038.5 billion drams ($12 billion 647.9 million), accounting for 49.8% of GDP.
