The Armenian Ministry of Finance plans to increase dollar-denominated borrowing in 2025, which will slightly reduce the share of debt denominated in drams within the overall structure of public debt, Finance Minister Vahe Hovhannisyan announced at a year-end press conference on December 25.
According to the minister, Armenia is scheduled to repay approximately $1.6 billion in principal debt and around $780 million in debt servicing costs in 2025. To finance the budget deficit, the government intends to utilize multiple sources, including eurobond issuance, budget support loans, and domestic bond issuance.
Hovhannisyan noted that in recent years, the government had been increasing the share of dram-denominated debt, bringing it to approximately 48%. However, this figure will slightly decrease next year. "Based on our foreign currency needs, we have decided to take on more dollar-denominated loans next year compared to this year," the minister explained.
By the end of 2024, the Ministry of Finance expects the public debt to reach 50% of GDP, with an anticipated economic growth rate of 5.5%.
According to the ministry's projections, Armenia's public debt will rise to $15.6 billion in 2025, accounting for 56.5% of GDP. Government debt, specifically, is expected to reach $15 billion or 54.3% of GDP. Servicing and repaying government debt in 2025 will require approximately $2.4 billion.
