Armenia’s public debt will remain stable at just above 40% in the medium term – S&P

YEREVAN, August 24. /ARKA/. Armenia’s public debt (excluding liquid assets) will remain broadly stable at just above 40% of GDP in the medium term, according to a report from the international rating agency S&P Global Ratings.

“The main fiscal risks will be related to the government’s ability to maintain revenue growth while meeting structural spending demands, particularly in defense, healthcare, and infrastructure,” the report states.

Furthermore, analysts point out that potential government intervention in the operations of Electric Networks of Armenia (ENA) CJSC could create contingent fiscal liabilities depending on the form of this intervention and the amount of compensation payments.

“Nevertheless, we expect that prudent financial management, continued access to domestic and foreign capital markets, and sustainable nominal GDP growth will ensure public debt stability in the medium term,” the review states.

According to Armstat, Armenia’s total public debt as of June 30, 2026, amounted to $13,900.932 million, an increase of $8.476 million compared to May 31, 2026. Of this total debt, $13,892.560 million is government debt (an increase of $8.424 million over the month), and $8.373 million is community debt (an increase of $0.052 million over the month).

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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