Armenia`s national debt stable and predictable - minister 

ArmInfo.  Armenia's public debt is stable, predictable, and manageable. This was stated by RA Minister of Finance Vahe Hovhannisyan on November 12 from the podium  of the National Asse-mbly during the presentation of the country's  draft 2026 state budget.

According to the minister, the issue of public debt is often  exaggerated by opponents of the government. In particular, much is  made of the fact that public debt has doubled since 2018. "I must  reiterate that the public debt is aimed at increasing the country's  economic potential, that is, improving the well-being of Armenian  citizens. Everyone who borrows money, regardless of the purpose,  hopes for good future repayment opportunities. The same is happening  at the state level. Over the past seven years, we have increased  revenues so much, including through debt, that if we decide to return  to 2018 levels, it will take 1.5 years," the minister noted, asking  why the authorities are not taking this step.

"Because our capabilities and ambitions have changed. If we take this  step, we will be forced to cut spending by 58%. For example, defense  spending will be reduced by 429 billion drams, or 65%, education  spending by 178 billion drams, or 60%, and social spending by 459  billion drams, or 54%," the Finance Minister said.

He added that increasing domestic debt is becoming increasingly  important in the government's portfolio.  While it stood at only 19%  in 2018, it has steadily increased over the following seven years,  reaching 50.8% in 2024. This policy has achieved several important  results. First and foremost, the risk of exchange rate fluctuations  has been significantly reduced. Furthermore, the government's needs  have been largely met through savings in the domestic financial  market, making it possible to pay interest rates to the country's  residents. Another important factor is facilitating the development  of the domestic government treasury bond market. "The current public  debt structure is much more diverse and stable than what we had in  2018," the minister emphasized, adding that government bonds have  also become attractive to international investors.

By the end of 2026, Armenia's public debt will amount to  approximately $17 billion, or 55% of GDP.  Compared to the end of  2025, when the debt is projected to be around $15 billion, or 53% of  GDP, the debt volume will increase by almost $2 billion.