On October 31, the Armenian government approved a loan agreement with the Asian Development Bank (ADB) for €89 million to help cover part of the 2024 budget deficit.
Armenia’s state budget deficit for 2024 is projected to be approximately $1.24 billion, with around $450 million in budget loans expected to help finance this gap.
The ADB loan will focus on three main areas: enhancing fiscal policy and public debt management, strengthening the issuance system for government securities and developing the financial market, as well as improving corporate governance and transparency.
According to Armenia’s Statistical Committee, the country’s public debt reached $12.45 billion as of August 31, 2024, an increase of $102 million since the beginning of the year. The Ministry of Finance projects that public debt could grow to $13.7 billion by the end of 2024, accounting for 50.5% of the country’s GDP.
In 2024, Armenia plans to allocate approximately $2.08 billion to service government debt, with $1.24 billion earmarked for principal repayments and $830 million for interest payments.
