Armenia’s State Debt Rises to $13.8 Billion in First Half of 2025

Armenia’s state debt stood at more than 5.3 trillion drams – or over 13.8 billion US dollars – as of the first half of 2025, Finance Minister Vahe Hovhannisyan reported to parliament on September 22. Presenting the figures during a committee hearing, Hovhannisyan said that the state debt grew by 4.5% compared to the end of 2024, or 7.9% when calculated in dollars.

He explained that while the government’s share of the debt rose by 4.8% in dram terms, the Central Bank’s debt dropped by 2.2% during the same period, slightly offsetting the overall increase. Despite the growth, the minister reassured lawmakers that the risk indicators of the country’s debt portfolio remain within acceptable thresholds.

The weighted average interest rate stayed stable at 7.2%, the same level as recorded at the end of 2024, signaling no major rise in borrowing costs.

Hovhannisyan also noted a shift in the debt structure, with domestic debt continuing to outpace external debt. As of mid-2025, domestic obligations accounted for 52% of the total, compared to 49% held in foreign currency, marking a steady policy focus on strengthening local debt markets and reducing exposure to exchange rate risks.