ArmInfo. Over the first 2 months of 2025, Armenia's public debt in dollar terms increased by approximately $186 million - from $12 billion 842.2 million by the end of 2024 to $13 billion 027.8 million.
In dram equivalent, the figure increased from 5 trillion 092.7 billion to 5 trillion 123.3 million drams. In particular, according to the republic's Ministry of Finance, the government debt in American currency increased from $12 billion 338.2 billion (396.56 drams per $) to $12 billion 524.1 million, and in drams - from 4 trillion 892.8 billion drams to 4 trillion 925.2 billion. The estimated exchange rate of the US dollar was 393.26 drams per $ 1. 84.9% of the government debt was attracted at a fixed interest rate (84.4% by the end of 2024).
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 590.1 million to $5 billion 849.7 million, in dram terms - from 2 trillion 359.6 billion drams to 2 trillion 300.5 billion drams.
Domestic debt increased both in dollars - from $6 billion 388.1 million to $6 billion 674.4 million, and in national currency: from 2 trillion 533.3 billion drams to 2 trillion 624.8 billion drams. At the same time, the Central Bank's debt decreased: in dollars from $504 million to 503.7 million, in drams - from 199.9 billion drams to 198.1 billion drams. Loans issued under a state guarantee decreased from $65.2 million to $64.3 million. By the end of February 2025, the share of domestic debt in the government debt structure increased from 51.8% (by the end of 2024) to 53.3%, and the dram debt increased from 50.8% to 51.9%.
A debt is paid with payment
In January-February 2025, the volume of budget deficit financing through net borrowing amounted to 43 billion drams (399.9 billion drams for the whole of 2024, and the annual program for 2025 is 649.2 billion drams). 69.9 billion drams were raised from internal sources (net proceeds from the placement of government treasury bonds), 26.9 billion drams from external sources, with an annual program of 291.4 billion drams and 357.8 billion drams, respectively. 18.6 billion drams out of 391.4 billion drams planned for the whole of 2025 (313.6 billion in 2024) were allocated for servicing the government debt (payment of interest rates).
Creditors of Armenia
The World Bank remains the largest creditor of the Armenian government - the International Bank for Reconstruction and Development and the International Development Association account for 37.7% of Armenia's external loans. The second largest creditor is the Asian Development Bank - 21.5%, the Eurasian Development Bank is in third place - 8.5%, followed by the International Monetary Fund - 2.7%, 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% (6.2% by the end of 2023 and 5.3% in 2024), Germany - 4.6%, Japan - 2.8%, France - 6.8%, China - 0.3%, and the United States - only 0.2% of the government's external debt.
Forecasts of financial authorities
According to the Ministry of Finance, in 2024 Armenia increased its public debt by 6.2% or $997 million - to $12 billion 842.2 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 5 trillion 092.7 billion.
According to the law , the public debt by the end of the year 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 for repayment and servicing of the government debt, of which 723 billion drams will be for repayment, 394.1 billion drams will be for interest payments. 3.6% of GDP will be allocated for servicing the government debt.
