ArmInfo. In the first quarter of 2025, Armenia's public debt in dollar terms rose by approximately $739 million, increasing from $12. 842.2 billion at the end of 2024 to $13. 581.1 billion. In dram equivalent, the amount went up from 5. 092.7 trillion to 5. 318.2 trillion drams.
Let us recall that on March 14, the website of the Ministry of Finance of Armenia reported that the country had successfully issued $750 million worth of Eurobonds on the international capital market on March 5, with a yield of 7.1% and a maturity of 10 years (settlement date - March 12, 2025). The coupon yield of the new Eurobonds is 6.75%. They were listed on the London Stock Exchange and have a rating of BB- (stable) S&P / BB- (stable) Fitch / Ba3 (stable) Moody's. It was noted that this is the fifth tranche of Armenian Eurobonds on the international capital market, as outlined in the Law of the Republic of Armenia <On the state budget for 2025> and included in the Borrowing Program for 2025. The net proceeds from the Eurobonds issuance will be used to cover the state budget deficit (609 billion drams - ed.). As a result, according to the data of the Ministry of Finance of the Republic, by the end of March 2025, the government debt in American currency increased from $12. 338.2 billion (AMD 391.59/1 $) to $13. 070.6 billion (by $732 million), and in drams - from 4. 892.8 trillion to 5. 118.3 trillion. The estimated exchange rate of the US dollar was AMD 393.26/1 $.
85.4% of the government debt was attracted at a fixed interest rate (84.4% by the end of 2024). External debt which includes Armenia's debt obligations to international organizations and foreign countries, as well as funds received from the issue of Eurobonds in dollar terms increased from $5.590.1 billion to $6. 471.1 billion, and 2. 359.6 trillion to 2. 534.trillion in dram terms Domestic debt also saw an increase, rising from $6. 388.1 billion to $6. 599.5 billion, and 2. 533.3 trillion to 2. 584.3 trillion in national currency. The Central Bank's debt in dram terms remained steady at 199.9 billion drams, while in dollars it increased from $504 million to $510.5 million. Loans issued under a state guarantee decreased from $65.2 million to $65 million. By the end of March 2025, the share of domestic debt in the government debt structure had increased from 51.8% (by the end of 2024) to 50.5%, and the dram debt had decreased from 50.8% at the end of the previous year to 50.3%.
The beauty of debt is in its payment
In January-March 2025, the volume of budget deficit financing through net borrowing amounted to 222.6 billion drams (compared to 399.9 billion drams for the whole of 2024, with the annual program for 2025 649.2 billion drams). Of this amount, 92.2 billion drams were attracted from internal sources (net proceeds from the placement of government treasury bonds). Additionally, 130.4 billion drams were sourced from external sources, aligning with the annual program of 291.4 billion drams and 357.8 billion drams, respectively. Out of 394.1 billion drams planned for the entirety of 2025, 39.2 billion drams were allocated for servicing the government debt (payment of interest rates). This is compared to 313.6 billion in 2024.
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 37.6% of Armenia's external loans. The second largest creditor is the Asian Development Bank at 21.7%, followed by the Eurasian Development Bank at 8.5%, the International Monetary Fund at 2.6%, and the European Investment Bank at 3.2%. External loans from the EU amounted make up 1.6% of the external debt structure, 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 - 4.9% (6.2% by the end of 2023 and 5.3% in 2024), Germany - 4.6%, Japan - 2.7%, France - 7%, 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, Armenia increased its public debt by 6.2% or $997 million in 2024, totaling $12. 842.2 billion (from $11. 845.4 billion by the end of 2023). In dram equivalent, the figure rose from 4. 794.9 trillion to 5. 092.7 trillion drams. According to the law <On the state budget of the Republic of Armenia for 2024>, the public debt by the end of the year is projected to reach 6. 159 trillion drams or 56.5% of GDP. The government debt is expected to be 5. 910.4 trillion drams ($13. 963.1 billion) or 54.3% of GDP. In 2025, only 1. 117.1 trillion drams will be needed for the repayment and servicing of the government debt, with 723 billion drams allocated for repayment line and 394.1 billion drams for servicing.
