ArmInfo.By the end of February 2026, Armenia's public debt had increased by $229 million compared to the end of December 2025, rising from $13.906 billion (381.4 per $) to $14.135 billion (377 per $). However, as of December 31, 2025, Armenia's public debt, according to the Ministry of Finance's final data for 2025, had already reached $14.531 billion (an increase of approximately $1.7 billion, or 13.1% - ed.).
So what is the magic behind this balancing act? According to Ministry of Finance data as of the beginning of January 2026, the public debt in dram equivalent had increased from 5 trillion 092.7 billion to 5 trillion 541.7 million drams in 2025. The government debt by the end of December 2025 in US currency had increased by $1.7 billion - from $12. 338.2 billion by the end of 2024 (AMD 396.56/1$) to $14 billion 040.7 million (AMD 381.36/1 $), and in dram equivalent - from 4 trillion 892.8 billion drams to 5 trillion. 354.5 billion. Meanwhile, Ministry of Finance data as of March 1, 2026, indicate that the Armenian government's debt had increased by $229 million compared to the end of December 2025 - from $13.897 billion (AMD 381.4/1$) to $14.126.5 billion (AMD 378.6/1$). In dram equivalent, the debt has increased from 5 trillion 300 billion drams to 5 trillion 325.7 billion drams. There appears to be a strange discrepancy in the figures. The reason is that by the end of 2025, the Ministry of Finance of the Republic of Armenia once again revised the definition of "public debt" to exclude the Central Bank's external debt and state guarantees, while including community debt. These legislative changes came into force in January, 2026.
What happened to the "public debt" and the Central Bank's debt?
Recall, prior to the amendments, Armenia's public debt included the government's debt obligations, which arise when there is a budget deficit and the need to raise additional funds to cover it, as well as the Central Bank's debt. Government debt was divided into external and internal (including loans issued under the government's guarantee, which were reflected in the Central Bank's external debt column). As a result of the revision, a new concept was introduced: "public sector debt," which represents the aggregate of public debt and the debt of state-owned financial and non-financial public sector organizations. That is, if we imagine a pyramid, "public sector debt" would be at the top (and the largest in terms of volume), followed by public debt, which would include only the government's debt (Central Government debt) and communities' debt (Municipal debt), excluding the Central Bank's debt (which would be included in the "Public Sector Debt") and guarantees. The Ministry of Finance now publishes separate data on public debt and on government debt (in different Excel files). Note, at the end of December 2017, Armenia's total public debt was $6.774 billion. By the end of April 2018, when Nikol Pashinyan's government was formed, this figure stood at $6.867 billion. Thus, over the 28-year history (since Armenia's independence), the Republic of Armenia has borrowed approximately $6.8 billion, and from 2018 to the end of 2025, the authorities "succeeded" to increase the public debt by approximately $7 billion 757 million.
Driven by new regulations
According to the Ministry of Finance, by March 2026, Armenia's external debt ( debt obligations to international organizations and foreign countries, funds received from the issuance of Eurobonds) increased from $6,539.3 million to $6,757.5 million in dollar terms. In dram terms it rose from 2,493.8 billion drams to 2,547.6 billion drams. The government's domestic debt decreased from 52.9% by the end of 2025 to 52.2% as of February 28, 2026. Meanwhile, the dram debt in the structure of the government's share increased from 52.5% in 2025 to 53.5% by the end of February, 2026. 86.3% of the government's debt has been raised at a fixed interest rate (86.1% by 2025 and 84.4% by the end of 2024). Meanwhile, the Central Bank's debt, which is already listed on a separate page, has decreased from $490.7 million to $485.3 million.
A debt must be repaid
In January-February 2026, the budget deficit was financed through net borrowings of 58.3 billion drams (with an annual budget of 649.7 billion drams, 639.4 billion drams for 2025, and 399.9 billion drams for all of 2024). Of the total borrowed amount, 74.7 billion drams were raised from domestic sources (net proceeds from the placement of government treasury bonds), and 16.4 billion drams were sourced externally, with an annual budget of 315 billion drams and 334.7 billion drams, respectively. 17 billion drams were allocated for servicing the government debt (payment of interest rates), while 410.7 billion drams were planned for the whole of 2026 (360.8 billion drams for 2025 and 313.6 billion in 2024).
"Our duties are the rights of others over us": Friedrich Nietzsche
The World Bank remains the largest creditor to the Armenian government, with the International Bank for Reconstruction and Development and the International Development Association accounting for 36.4% of the government's external loans. The second largest creditor is the Asian Development Bank (22.7%), followed by the EFSD (8.8%), the European Investment Bank (3.2%), and the International Monetary Fund (1%). The EU external loans accounted for 1.7% of the external debt, the International Fund for Agricultural Development (IFAD) - 1%, the OPEC Fund for International Development- 3.1%, and the EBRD-0.9%. Among the major creditor countries, Russia ranks first with 2.2% (6.2% by the end of 2023, 5.3% in 2024 and 2.5% in 2025), Germany follows with 4.6%, Japan with 2.5%, France with 11.1%, China with 0.3%, and the United States with only 0.2% of the government's external debt.
Financial authorities' forecasts
According to the law "On the State Budget of the Republic of Armenia for 2026," by the end of 2026, the government debt will reach $15.152.8 billion (6.310.3 trillion drams), or 52.9% of the GDP. To manage this debt, 1.05 trillion drams will be needed (420 billion drams alone for interest payments).
