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.
