In the first half of 2024, Armenia's national debt surpassed another psychological milestone, reaching $12.1572 billion, according to the Ministry of Finance of the republic. This is $311.8 million more than at the end of 2023.
Notably, the debt structure is undergoing significant changes. The share of domestic debt in the total government debt increased from 47.3% to 50.7%, and the dram-denominated debt rose from 45.9% to 49.4%. This indicates growing confidence in the national currency and the local financial market.
However, not all indicators show growth. Armenia's external debt has decreased in both dollar and dram terms.
The Central Bank of Armenia has also managed to reduce its debt burden. The central bank's debt decreased from $550.8 million to $508 million.
In the first half of 2024, 153.5 billion drams (over $393 million) were allocated for servicing the government debt, which is almost half of the planned amount for the entire year of 345 billion drams (over $886 million).
Experts note that despite the increase in the total debt volume, the shift in its structure towards domestic borrowing may indicate a strengthening of the country's financial system. However, the high costs of debt servicing remain a significant challenge for Armenia's economy.
BMG reminds that at the end of 2023, the debt-to-GDP ratio was 48.4%. Meanwhile, data for the first half of this year is not yet available.
