About 10% of Armenia’s dram-denominated government debt is held by international institutional players: Central Bank Governor

YEREVAN, May 25. /ARKA/. Institutional players are entering the dram-denominated government debt market in Armenia, stated Martin Galstyan, Chairman of the Central Bank of Armenia.

“Several years ago, there were no serious institutional players with an international reputation in the dram portion of Armenia’s government debt. Today, they hold approximately 10% of the dram-denominated government debt,” he said, presenting Armenia’s financial stability report for 2025.

Galstyan declined to name specific investors, noting that they are among the largest and most serious market participants. He added that their presence also contributes to the relatively low yield on 10-year Armenian government bonds.

As an example, he pointed out that the yield on 10-year US Treasury bonds is approximately 4.4%, while the yield on Armenian dram-denominated government bonds is 8.8%. According to the head of the Central Bank, this is a positive indicator.

He also noted the need to continue working to expand the presence of international players in the Armenian market.

“Their presence brings not only money but also knowledge: we are already learning how to interact with these international players and how to represent the country,” Galstyan said.

According to him, the arrival of such investors also strengthens internal discipline in matters of managing the state’s economic policy.

“In your relationships with these players, if you build them over the long term, the most important element is the appropriate nature of your macroeconomic policy. If they suddenly see that you are wavering in your fiscal or monetary policy, that is, not doing what you promised or what is right, you will have a problem,” he said.

Galstyan described contacts with international institutional investors as positive and noted that a positive perception of Armenia has emerged.

“They have a long-term vision for Armenia, which is currently being implemented,” he added.

According to Armstat, Armenia’s total public debt as of March 31, 2026, amounted to over $14,077,138 million, a decrease of $57,761 million compared to February 28, 2026. Of the total debt, $14,068,954 million is government debt, while $8,184 million is community debt.

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