YEREVAN, October 27. /ARKA/. Given the projected exchange rate of the Armenian dram, the public debt-to-GDP ratio will stabilize in the 50-60% range in the medium term, stated Armenian Finance Minister Vahe Hovhannisyan.
“In particular, according to our forecasts, the figure will reach 54%, and will show a downward trend in the coming years,” he said during a parliamentary discussion of the 2026 draft budget.
Regarding risks, the minister noted that they will be managed by two main instruments.
“The first is the formation of macro reserves, which was introduced two years ago and is aimed at mitigating the risk of insufficient tax collection as a result of negative economic shocks,” he said. As a second tool, Hovhannisyan pointed to permanent liquidity of 1% of GDP in the single treasury account, which is planned to manage any other risk.
According to Armstat, Armenia’s total public debt as of August 31, 2025, amounted to over $14.13 billion. Of this total debt, over $6.88 billion is external debt (including over $6.36 billion in government debt and $522.3 million in Central Bank debt), while domestic debt amounts to $7.24 billion.
