Armenia's State Debt Reaches $12.2 Billion: How Much Debt Does the Country Have?

The newspaper 'Haykakan Zhamanak' reports: Armenia's state debt continues to grow. As of June 30, 2024, the state debt of Armenia has reached 4,718.9 billion drams (12.2 billion USD), of which 2,424.4 billion drams (6.3 billion USD) is external debt and 2,294.6 billion drams (5.9 billion USD) is internal debt. Compared to the same period last year, the state's debt has increased by 9.5% in dollar terms and 10.0% in dram terms. The government's debt has shown similar trends, increasing by 10.3% in dollar terms and 10.8% in dram terms.

Interestingly, the authorities, who rallied for the reduction of state debt during the first years after the revolution, have so significantly breached the financial inflows and outflows of the state budget that we have surpassed the permissible threshold of public debt. The 'Haykakan Zhamanak' newspaper demanded information from the government regarding:

1. How many loans have been arranged in the name of the Republic of Armenia from 2018 until August 8, 2024?
2. What is the total amount of these loans (in drams)?
3. From which countries and banks have these loans been taken? Provide details for each loan.
4. Individually present the term for each loan.

The emphasis on the word 'individually' is intentional, aimed at obtaining a clearer response to the inquiry.

However, as expected, the picture presented was, to say the least, alarming. First, it should be noted as a fact that the repayment term for loans arranged after 2018 is 25 years - almost until 2050, with timelines extending to coincide with the completion of Armenia's transformation strategy until 2050. This is not a coincidence; rather, it is a deliberate strategy.

Thus, Armenia has 13 loans from the European Bank for Reconstruction and Development, with terms of 25.15 and 19 years. One loan starts from €7.4 million to €236 million, amounting to nearly 101 billion drams. The loan purposes vary, from the Yerevan bus project to the construction of the North-South transport corridor.

Interestingly, while the burden of the borrowed funds is substantial, significant results from the projects are not apparent. The public debt has crossed permissible limits, the budget deficit has exceeded 288 billion, and the government believes that the hope for covering the budget deficit and repaying public debt should rely on taxpayers – even attempting to increase taxes, imposing fees of 20-40 drams on taxi drivers, and so forth, while their lavish lifestyles are at the expense of the state budget without any form of economy being evident.