Trend of declining public debt-to-GDP ratio in Armenia will continue – Ministry of Finance

YEREVAN, March 13. /ARКА/. Armenia intends to continue reducing its public debt-to-GDP ratio, stated Deputy Finance Minister Avag Avanesyan.

“After the 2020-21 crisis, we managed to reduce the public debt-to-GDP ratio; we dropped below 50%, and we believe that we need to continue lowering the ratio in 2027-28,” he said during a panel discussion at the fourth Capital Markets Armenia forum organized by Cbonds.

Avanesyan added that, given that some capital is currently fleeing international markets into government bonds, Armenia is pursuing this policy, taking into account the potential risks of these trends continuing.

Regarding Public Debt

According to the Ministry of Finance, Armenia’s total public debt as of December 31, 2025, amounted to $14,531.3 million, compared to $12,842.2 million as of December 31, 2024. As previously stated by Armenian Finance Minister Vahe Hovhannisyan, Armenia’s public debt-to-GDP ratio by the end of 2025 will be close to 48.7%.

The international rating agency S&P Global Ratings, taking into account the reduction of budget deficits and high nominal GDP growth, forecasts that Armenia’s public debt, net of liquid assets, will remain generally stable and remain at a moderate level of 44% of GDP in the medium term.

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