YEREVAN, January 21. /ARKA/. Armenia’s public debt-to-GDP ratio will be close to 48.7% by the end of 2025, stated Finance Minister Vahe Hovhannisyan.
“The state budget deficit in 2025 will be approximately 1 percentage point lower than projected. The planned deficit was 5.5%. This will have a beneficial effect on the debt. If we planned for government debt to exceed 50% by the end of 2025, it will be close to 48.7%. At the end of 2024, the government debt was 48%,” he said at a final press conference on Wednesday.
The minister explained that positive developments in the international and Armenian markets allow us to expect a reduction in the level of public debt servicing compared to the figures set in the 2026 budget.
“While in 2024 we issued 10-year treasury bonds at a rate of 9.6%, at the first auction in 2026, this rate was 8.09%. This is due to increased dram liquidity in Armenian banks and the interest in Armenia from international institutional investors,” Hovhannisyan said.
According to him, these investors are participating in auctions held in Armenia, positively impacting rates.
“Currently, the share of foreign investors in our bonds has exceeded 7%, while previously it was below 1%,” Hovhannisyan said.
According to the Ministry of Finance, the total public debt of Armenia as of December 31, 2025 amounted to $14,531.3 million, compared to $12,842.2 million as of December 31, 2024. In the structure of the public debt, $7,036.6 million is external debt (the figure at the end of December 2024 was $6,454.2 million), and domestic debt – $7,494.7 million ($6,388.1 million as of December 31, 2024).
