According to the latest data, Armenia's national debt reached 4.79 trillion drams by the end of July 2024, equivalent to over $12.3 billion. This marks a 9.3% increase compared to the same period last year, but a slight decrease of 0.1% from the beginning of the current year.
The trend shows a rise in debt, with an increase of 72 billion drams (about $185 million) over the month. Government bonds remain the primary tool for financing the debt. In July, bonds worth 74.5 billion drams (approximately $190 million) were issued.
The Ministry of Finance of Armenia is taking advantage of favorable market conditions, issuing long-term bonds at rates below 10%. For example, bonds worth 61 billion drams were issued with a maturity date in 2033 at an average rate of 9.96%. The yield on short-term bonds maturing in 2025 has dropped to below 9%.
The average rate on outstanding bonds was 10.65%, with the average maturity period reduced by 18 days to 2,804 days.
It is noteworthy that debt servicing is becoming increasingly costly. In the first half of 2024, 153 billion drams (about $400 million) were spent on debt servicing, which is 31.7% or 37 billion drams ($97 million) more than in the same period last year.
