EDB analysts see no risks in Armenia's public debt level

ALMATY, December 5. /ARКА/. As for Armenia's public debt, the Eurasian Development Bank (EDB) does not see any risks or reasons for concern, since the public debt is at an average level and even below the average for developing economies, said Marina Sobolevskaya, head of the EDB Country Analysis Center, during the presentation of the bank's macroeconomic forecast for 2025-2027. 

"The issue of public debt is quite sensitive. But the pace of development of the Armenian economy is quite high and continues to grow. Domestic demand will also grow, which will continue to translate into growth in budget revenues. The growth in budget expenditures will be offset, including through borrowing," Sobolevskaya said. 

In turn, EDB Chief Economist Yevgeny Vinokurov noted that it is necessary to take into account not only the absolute value of the public debt, but also the cost of servicing it.

"Armenia's debt is quite low in terms of servicing costs. A significant portion of the debt is made up of sovereign loans, which are provided at a low rate,” Vinokurov said. 

Earlier, the head of the Central Bank of Armenia, Martin Galstyan, said that the ratio of public debt to GDP in 2025 will increase by 3.2 percentage points compared to the previous year and will amount to 53%.

According to the National Statistical Committee, the total public debt of Armenia as of September 30, 2024, amounted to $12.5 billion, of which $6.29 billion is external debt and $6.20 billion is domestic debt.-0-