ArmInfo. In 2027, the Armenian government intends to maintain the current public debt structure, according to which domestic liabilities in drams should prevail over external ones. This was announced by RA Finance Minister Vahe Hovhannisyan on November 2 while presenting the country's draft 2027 state budget in parliament.
According to the minister, in the 2027 fiscal year, the public debt will stabilize at 47% of GDP. Furthermore, debt servicing costs next year will amount to 417 billion drams, or 10.2% of total state treasury expenditures, 11.6% of revenues, and 3.1% of GDP. Hovhannisyan emphasized that the planned amount also includes risks associated with possible exchange rate fluctuations. According to him, if the exchange rate remains at the current level, debt servicing costs will be significantly lower.
The minister stated that special attention will be paid to the average remaining maturity of public debt, which is 7-10 years. However, given the current external instability, issuing longer-term debt instruments is becoming significantly more expensive. The head of the Ministry of Finance, in particular, pointed to the risks associated with refinancing Armenian Eurobonds in 2029, 2031, and 2035. To manage these risks, it is planned to continue the policy of buying back a portion of the debt obligations, which will prevent further increases in the cost of public debt. Overall, according to the minister, all debt risks are manageable.
As of June 30 of this year, Armenia's public debt amounted to 5.12 trillion drams or $13.9 billion.
