In the First Half of 2024, Armenia's Domestic Public Debt Surpasses External Debt for the First Time

According to the results of the first half of 2024, Armenia's domestic public debt has exceeded its external debt for the first time (50.7%/49.3%). Overall, the government debt has increased by 3%, while the debt of the Central Bank of Armenia has decreased by approximately 8%.

This information is noted in the report of the Ministry of Finance of Armenia, as reported by Sputnik Armenia. The government debt relative to GDP was 48.4% as of 2023, and the results for the first half of 2024 have not yet been calculated.

As for loans obtained from external sources, the Armenian government has reduced their volume, instead increasing state bonds. In the first half of 2024, the share of Armenian dram-denominated bonds accounted for 49.2%, foreign loans for 37.2%, and Eurobonds for 13.4%. The volume of foreign loans has overall decreased by about 5% and constitutes roughly 40% of the total government debt.

In the first half of the year, the structure of foreign lenders has not significantly changed, with the World Bank remaining the largest lender at 37.8%. The proportion of concessional loans in the bank's loan portfolio is gradually decreasing, as Armenia is no longer considered a country in need of concessional loans according to international financial organization standards. Thus, the concessional loans reflected in our country's statistics have mostly been taken before 2020-21 and are gradually being repaid.

Among other lenders, the Asian Development Bank's share in the first half of this year was 19.6%, the European Development Bank’s share, including the Eurasian Fund for Stabilization and Development, was 8.3%, the International Monetary Fund's share was 5.3%, and the European Investment Bank's share was 3.2%. Four other organizations, including OPEC (Organization of the Petroleum Exporting Countries), the European Union, IFAD (International Fund for Agricultural Development), and EBRD (European Bank for Reconstruction and Development), accounted for a total of 5.6% of the overall loans. Furthermore, the EBRD not only finances the government but also provides significant funding to private businesses.

As for loans received from other countries, which account for a total volume of 19.9%, the largest share belongs to the Russian government at 6%, followed by France at 5.4%, Germany at 5%, and Japan at 2.8%.

Regarding the debt of the Central Bank of Armenia, it services its obligations with its own resources rather than from the state budget of Armenia.