Armenia`s state debt increased by $1 billion 256 million in 7 months,  exceeding $14 billion.

ArmInfo. From January to July 2025, Armenia's state debt in dollar terms increased by approximately $1. 256 billion, rising from $12. 842.2 billion  by the end of 2024  to $14.  098.6 billion. In dram equivalent, the figure increased by  319 billion drams, going from 5. 092.7 trillion drams to 5. 411.6  trillion drams.

Recall that on March 5 of this year, Armenia  issued its  5th tranche  of Eurobonds in the amount of $750 million, 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%. These Eurobonds 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 the net  proceeds from the  Eurobond issuance will be used to finance the  state budget deficit (609 billion drams - ed.). According to data  from the Ministry of Finance of the Republic, the government debt by  the end of March of this year increased from $12. 338.2 billion  to  $13. 575.3 billion  (by $1. 237billion). In dram terms, the debt  increased by approximately 318 billion drams - from 4. 892.8 trillion   drams to 5. 210.7 trillion.

External debt (debt obligations of Armenia to international  organizations and foreign countries, and funds received from the  issue of Eurobonds)  increased from $5. 590.1 billion to $6. 431.9  billion and from  2.  359.6 trillion  to 2. 468.8 trillion in dram  terms.  The domestic debt also increased  from $6. 388.1 billion to  $7. 143.4 billion,  and from 2. 533.3 trillion to 2. 741.9 trillion   in national currency. The Central Bank's debt in dram terms increased  from 199.9 billion drams (since the end of 2024) to 200.9 billion  drams, and in dollars from $504 million to $523.3 million.  Loans  issued under a state guarantee decreased from $65.2 million to $64.8  million. By the end of July 2025, the share of domestic debt in the  government debt structure increased from 51.8% (by the end of 2024)  to 52.6%, and the dram debt - from 50.8% by the end of  the previous  year to 52%. 86% of the government debt was attracted at a fixed  interest rate (84.4% by the end of 2024).

One good turn deserves another

From January to July 2025, the volume of budget deficit financing  through net borrowing totaled  287.1 billion drams (399.9 billion  drams for the whole of 2024, and the annual program for 2025 is 666.6  billion drams). Of this total, 198.5 billion drams were attracted  from internal sources (net proceeds from the placement of government  treasury bonds), while 88.5 billion drams were obtained from external  sources, with an annual program of 291.4 billion drams and 357.8  billion drams, respectively. 178 billion drams out of 394.1 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, with the International Bank for Reconstruction and  Development and the International Development Association  accountingfor 37.7% of Armenia's external loans. The Asian  Development Bank is the second largest creditor - 21.8%,  followed by  the Eurasian Development Bank - 8.7%,  the International Monetary  Fund - 1.6%, and the European Investment Bank - 3.3%. External loans  from the EU in the structure of external debt amounted to 1.7%, the  International Fund for Agricultural Development - 1%, the OPEC Fund  for International Development - 3.2%, and the EBRD - 1%. Among the  major creditor countries, the Russian Federation is in first place -  4.7% (6.2% by the end of 2023 and 5.3% in 2024), Germany - 4.6%,  Japan - 2.8%, France - 7.3%, 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. 842.2 billion  (from  $11. 845.4 billion by the end of 2023). In dram equivalent, the  figure increased from 4. 794.9 trillion  to 5. 092.7 trillion drams.   According to the law , the public debt by the end of the year will amount to 6.  159trillion  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 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- for interest  payments. and 3.6% of GDP will be allocated for servicing the  government debt.