State Debt Increased by 80 Percent: Details

The state debt of Armenia has increased by 80 percent, but it is expected to be manageable within 1.5 years. This was stated by Armenia's Minister of Finance, Vahe Hovhannisyan, during the discussions on the budget draft in the National Assembly.

“The state budget deficit is projected to reach 537 billion drams, which is 4.5 percent of GDP, compared to 5.5 percent in 2025. Our goal is to continually reduce the budget deficit and keep the state debt stable and manageable, maintaining it around 50 percent in the medium term. Some opposition circles claim our state debt has doubled, but it has actually increased by 80 percent. It is important to note that this debt is aimed at enhancing the economic potential of the state, which means expanding the opportunities for Armenians to increase their wealth and improve their welfare,” Hovhannisyan emphasized.

He also noted that increasing the share of domestic debt is of significant importance for risk management within the government's debt portfolio. At the end of 2018, the share of domestic debt within the government's debt structure was just 19 percent, but it has been steadily growing over the next six years, reaching 50.8 percent by 2024.

It should be reminded that Minister Vahe Hovhannisyan, while presenting the report on their activities for 2024 on March 24 in the National Assembly, indicated that last year the state debt increased nominally by 6.2 percent compared to the end of 2023, but its ratio to GDP has hardly changed, remaining at 48.3 percent. By the end of 2024, the state debt is expected to be around 5 trillion 93 billion drams.