Armenia's Finance Minister Vahe Hovhannisyan reported a significant increase in the country's public debt in an interview with the state agency "Armenpress."
According to the minister, Armenia's public debt grew by 443 billion drams, equivalent to more than $1.1 billion, in the first half of 2024 compared to the same period last year.
Hovhannisyan described this growth as a "planned process" of the government raising debt funds. He explained that the initial budget forecasted the debt-to-GDP ratio at 48.4%. However, according to current projections reflected in the medium-term expenditure plan, the debt level is expected to reach 50% by the end of 2024.
"We anticipate that the debt level will be within 50% by the end of this year," the finance minister stated.
Earlier, BMG reported that according to the Ministry of Finance's forecasts, Armenia's public debt is expected to reach 5.314 trillion drams (over $13.5 billion) by the end of 2024, which would represent 50.5% of the country's GDP, compared to 49.3% at the end of 2023.
It is important to note that in 2024, 805.2 billion drams (over $2 billion) will be required for the repayment and servicing of government debt. Of this amount, 483 billion drams (over $1.2 billion) will go towards principal repayment, and 322.2 billion drams (over $827 million) will be allocated for interest payments.
