`Rebranding` of national debt in Armenia 

ArmInfo.Armenia will undergo a "rebranding" of its public debt. At its October 13 meeting, the Committee on Financial, Credit, and Budgetary Affairs of the  National Assembly of the Republic of Armenia approved amendments to  the laws "On the State Share," "On the Budget System," and "On Funds"  submitted by the government.

Presenting the amendments, Deputy Minister of Finance Avag Avanesyan  noted that the package envisages the exclusion of loans raised by the  Central Bank of the Republic of Armenia or secured under state  guarantees from the public debt. In turn, resources raised by local  governments, particularly Yerevan, will be included in the public  debt. Avag Avanesyan emphasized that the proposed initiative is the  result of the Ministry of Finance's active collaboration with the  International Monetary Fund, aimed at addressing the issue of  accurate reporting and the calculation of key financial indicators.  In accordance with the three-year IMF program, Armenia has accepted  the above-mentioned precondition, which is also very important for  attracting new loans and international securities.

Another change, as the Deputy Minister noted, concerns the efficiency  of decisions regarding changes to international loan and securities  rates. It often happens that partners submit proposals for changes  that require promptness, while the Armenian side is forced to seek  permits and other bureaucratic procedures.  Now, the Ministry of  Finance will have this opportunity. Avag Avanesyan emphasized that  the package also provides for the Armenian government to impose a  moratorium on borrowing. This can occur if the national debt exceeds  60% of GDP. In this case, permission from the National Assembly of  the Republic of Armenia will be required. This right will also apply  if the national debt, together with contingent liabilities from  previous years, approaches 70%. All liabilities are currently  registered with the State Treasury.  However, it is important to  distinguish between the concepts of "liabilities" and "contingent  liabilities." The latter were not recorded in the Treasury. Now, they  will also be calculated by the Ministry of Finance. This concerns  guarantees for loans raised by the private sector. For example, these  could be companies in the aviation, energy, and railway sectors.

Avag Avanesyan emphasized that the adoption of the package will  reduce the "public debt to GDP" ratio by 2%, primarily due to the  Central Bank's debt. Guarantees will account for 0.2% of this 2%. At  the end of 2024, the country's public debt to GDP was approximately  50%.

It should be noted that, according to the current terminology,  Armenia's public debt in dollar terms increased by approximately  $1.256 billion from January to July 2025, from $12.842.2 billion by  the end of 2024 to $14.098.6 billion. However, following the planned  adjustments, this figure will decrease. It will "lose" the Central  Bank debt (200.9 billion drams or $523.3 million), the debt of the  Yerevan community will be added to it (5.3 million euros), and the  state debt according to the new classification will amount to $13  billion 279 million.