Central Bank: Armenia’s current public debt level is not a cause for concern

YEREVAN, August 4. /ARKA/. The current level of Armenia’s public debt is not a cause for concern, stated Deputy Governor of the Central Bank of Armenia Hovhannes Khachatryan.

“For us, the important variables are, on the one hand, the fiscal stance that stimulates demand, in particular, the level of the deficit, and from the perspective of the risk premium, this is an important indicator,” Khachatryan noted at a press conference on Tuesday, responding to a question from the ARKA news agency regarding the World Bank’s statement that it does not see significant risks even if Armenia’s public debt rises to 50% of GDP.

According to him, work is currently being conducted within the framework of the statutory “golden rule” with thresholds of 50% and 60%.

“Naturally, in various scenarios, we also take into account the potential growth of the public debt. “This depends on the exchange rate, current expenditures, tax revenues, and GDP itself,” Khachatryan said.

“At the moment, since we are not highlighting this as a separate issue, it does not cause us concern. The situation is standard and within current expectations,” Khachatryan said.

About Armenia’s public debt

According to the Ministry of Finance, Armenia’s total public debt as of March 31, 2026, amounted to $14.77 billion, compared to $13.91 billion as of December 31, 2025.

The government’s debt amounted to $14.7 billion, of which $6.7 billion was external and $7.4 billion was domestic. 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 at the end of March 2026 amounted to $482.4 million.

Earlier, Deputy Finance Minister Avag Avanesyan stated that the Armenian government aims to increase the public debt-to-GDP ratio to 45%.

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