YEREVAN, October 27. /ARKA/. The Armenian government’s debt-to-GDP ratio will increase by 2.8 percentage points in 2026 to 53.5%, below the trajectory projected in the 2026-2028 medium-term expenditure framework but above the 50% threshold established by the fiscal rule, Central Bank Chairman Martin Galstyan announced during a discussion of the draft 2026 state budget.
“In the context of increasing government debt and macroeconomic risks, more efficient use of resources and the development of capacity to manage potential risks is essential,” he said. This, according to Galstyan, will create guarantees for long-term fiscal stability.
The regulator’s head noted that as a result of the budget deficit reduction in the medium term and the targeting of fiscal consolidation, the rate of debt growth will slow, and the debt/GDP ratio will stabilize at 54.2% in 2028.
“At the same time, in 2026, funds from external sources will continue to be attracted to finance the deficit and capital expenditures, as well as a gradual increase in national currency debt and domestic debt,” he said.
In terms of debt sustainability, he emphasized the importance of deficit financing in accordance with an adequate and effective debt management strategy.
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 was the external debt (of which over $6.36 billion was government debt, and $522.3 million was Central Bank debt), while domestic debt stood at $7.24 billion.-0-
