Armenia's National Debt Surpasses $10 Billion Mark

Armenia's national debt has surpassed the $10 billion mark. While it does not violate budgetary rules, the servicing of the debt is becoming increasingly burdensome, with billions of drams allocated from the budget towards interest payments. The strengthening of the dram against the dollar has contributed to this rise in national debt.

As of the end of December 2022, Armenia's national debt stood at $10.638 billion. Over the year, it increased by 15.3%, or $1.412 billion, according to data provided by the Ministry of Finance.

The national debt has risen primarily due to internal borrowing. As of the end of the year, the internal debt was approximately $4.189 billion, having increased by about $1.610 billion, or 62.5%, during the year. This internal debt mainly consists of government treasury bonds purchased by residents. In contrast, the external debt reached $6.451 billion. Unlike the internal debt, the external debt has decreased over the year due to repayments, showing a decline of $197.6 million or 3% compared to the start of the year. Most of the external debt comprises loans and borrowings from other countries and organizations.

Over the past decade, Armenia's national debt has grown 2.4 times. However, the debt burden does not exceed the