Armenia’s public debt grew by $180 million in November, primarily due to the revaluation of its foreign currency component caused by a 1.96% strengthening of the US dollar. In absolute terms, the increase amounted to 71 billion drams or 1.5% compared to October.
According to official statistics, the total growth of public debt since the beginning of the year has reached $422 million (166 billion drams), or 3.5%. When recalculated in dollar terms, the increase amounted to 6.1%, although in November, the foreign currency component of the debt in dollar terms saw a slight decrease of 0.2%.
November was marked by a successful operation to refinance external loans totaling over $40 million, which reduced the weighted average interest rate on external borrowing from 3.6% to 3.4%. This followed October’s record-high interest payments on public debt, which exceeded $254 million (100 billion drams).
It is noted that the Armenian government continues to rely on government bonds as the primary source of financing. However, attracting medium- and long-term funds at rates significantly below 10% per annum remains a challenge.
