Armenia’s public debt hits $13.6 billion by April

PanARMENIAN.Net - Armenia’s public debt stood at $13.608 billion at the end of April 2024. According to data from the Ministry of Finance, this marks an increase of $766 million or 6% since the beginning of the year.

In March 2024, Armenia issued Eurobonds worth $750 million on the international capital market. The bonds, set to mature in 10 years, carry a yield of 7.1%. As reported by Hetq, the government thereby took on new, more expensive debt.

“Why did the government suddenly need $750 million? Simply put, the time had come to repay previous debts, and the budget lacked sufficient funds to do so. Hence, the state resorted to borrowing anew.”

This transaction also contributed to the overall rise in public debt.

Public debt is growing on one hand due to inflows from Eurobond sales, foreign loans, and other domestic and external sources. On the other hand, older debts are being repaid, and interest payments are being made, the article noted.

The sharp increase in Armenia’s international reserves in March was also attributed to the Eurobond issuance.

As of the end of April, Armenia’s external debt stood at approximately $7.1 billion—an increase of 9.4% since the start of the year. Domestic debt totaled $6.5 billion, marking a 2.5% rise.

Only about 4% of the country’s total public debt is owed by the Central Bank of Armenia, with the rest attributed to the Armenian government.

As of 2024, Armenia’s debt burden remains below the 50% ceiling set by fiscal rules, with the government debt-to-GDP ratio at 48.3%. The World Bank remains Armenia’s largest creditor by year-end.