YEREVAN, June 16. /ARKA/. Armenia plans to reduce public debt to below 45% of GDP in the coming years, Finance Minister Vahe Hovhannisyan announced in parliament.
Speaking at the discussion of the annual report on the execution of the 2025 state budget on Tuesday, Hovhannisyan noted that the government considers maintaining the debt burden below 50% a priority.
“In the coming years, our goal will be to reduce the public debt level to below 45%, which will allow us to reduce debt servicing costs from 12.1% of budget revenues to 10% and create more opportunities for initiatives aimed at developing the social sphere and human capital,” Hovhannisyan said.
According to him, in 2025, the public debt-to-GDP ratio was 47.2%, a decrease of 0.5 percentage points compared to the previous year.
“This was facilitated by maintaining a moderate state budget deficit and a stable macroeconomic environment.” “The budget deficit amounted to 3.7% of GDP, compared to the planned 5.5%,” the minister said.
According to the Ministry of Finance, Armenia’s total public debt as of March 31, 2026, amounted to $14.077 billion, compared to $13.906 billion as of December 31, 2025.
As of that date, the government’s public debt amounted to $14.068 billion (including $6.672.6 million in external debt and $7.396.3 million in domestic debt), while community debt amounted to $8.18 million (including $8.03 million in external debt and $0.15 million in domestic debt). The Central Bank of Armenia’s external debt amounted to $482.4 million as of the end of March 2026.
