ArmInfo. The issuance of $750 million in Eurobonds by Armenia in March 2025 with an interest rate of 7.1% indicates that foreign investors perceive the risk associated with the RA to be quite high.
Usually the high yield on Eurobonds reflects the market's perception of a country's political and economic instability, as well as its low creditworthiness or structural imbalances in the economy. This viewpoint was shared by David Ananyan, former chairman of the State Revenue Committee of Armenia and director of DSA Consulting Group CJSC, who holds a PhD in Economics. the opportunities for accumulating domestic debt (or assessing them as insufficient), was forced to offer foreign investors such compensation for the risks involved.
An aggressive debt burden coupled with weak fiscal discipline (in 2024, state budget tax revenues were fell short by over 7.5% compared to planned revenues, and the declared fiscal consolidation was not put into practice) will obviously lead to a faster increase in debt than economic growth>, Ananyan wrote on social media. The expert believes that if current borrowings are used to repay old debts, rather than investing in infrastructure, education, technology or other growth factors, then the debt will not have a , leading to the economy being unable to generate sufficient income in the future to service the new debt burden.
In reality, Armenia has found itself in a difficult situation, as public debt (both external and internal) is growing amidst (not real) economic growth, budget imbalances and declining tax revenues. In such conditions, Ananyan believes that improving fiscal policy and reducing dependence on external borrowing are considered unrealistic and ineffective. , the former head of the State Revenue Committee concluded.
