Armenia`s minister of finance, ADB, FAR reps discuss fiscal policy,  national debt management 

ArmInfo. Armenian Finance Minister Vahe Hovhannisyan met with a joint mission of representatives of the Asian Development Bank (ADB) and the French Development Agency (AFD, Agence Francaise de Developpement). During the meeting, the parties  discussed a number of important issues related to the 3rd subprogram  of the budget support credit program implemented by ADB and AFD.

According to the information from the Ministry of Finance, a number  of reforms are envisaged within the framework of the budget support  program, including in the areas of fiscal policy and public debt  management. The program is aimed at promoting the improvement of  financial risk management policies, expansion of financial  instruments, and increasing transparency.

During the meeting, the activities of the developed policy for  attracting credit funds, the process of their implementation, as well  as the expected results were discussed.

The parties emphasized the importance of the measures and reforms  envisaged by the Program in terms of promoting economic growth in the  Republic of Armenia, noting the importance of continuing effective  cooperation in the context of strategic partnership.

Recall that by the end of December 2024, Armenia's public debt in  dollar terms increased by approximately $997 million - to $12 billion  842.2 million (from $11 billion 845.4 million by the end of 2023). In  dram equivalent, the indicator increased from 4 trillion 794.9  billion to 5 trillion 092.7 billion. In particular, according to the  data of the Ministry of Finance of the Republic, over 12 months of  2024, the government debt in American currency increased from $11  billion 294.6 million (404.79 drams per $) to $12 billion 338.2  billion (387.05 drams per $), and in dram equivalent - from 4  trillion 571.9 billion to 4 trillion 892.8 billion drams. The  estimated exchange rate of the US dollar was 396.56 drams per $  (404.79 at the end of 2023).

The World Bank remains the largest creditor (external loans) of the  Armenian government - the International Bank for Reconstruction and  Development and the International Development Association account for  37.6% of the RA public debt. The second largest creditor is the Asian  Development Bank - 21.2%, the Eurasian Development Bank is in third  place - 8.4%, followed by the International Monetary Fund - 3.4%, and  the European Investment Bank - 3.1%. External loans from the EU in  the structure of external debt amounted to 1.5%, the International  Fund for Agricultural Development - 1%, the OPEC Fund for  International Development - 3%, and the EBRD - 0.9%. Among the major  creditor countries, the Russian Federation is in first place - 5.3%  (6.2% by the end of 2023), Germany - 4.5%, Japan - 2.7%, France -  6.7%, China - 0.3%, and the USA - only 0.2% of the government's  external debt.