The credit burden of Armenian citizens has increased
July 01 2025, 18:20
As of May this year, Armenia’s public debt amounts to $13.7 billion. While the topic of public debt often arises, it’s not an end in itself or merely a review of current trends.
Our mentions, at least in recent months, have been driven mostly by new occasions. And the occasions mostly concern the steady growth of the state’s debt obligations. So, the other day it became known that Germany’s KfW Bank provided €26 million in loans and grants for a renewable energy initiative. Even though it was a program, the topic of attracting a new loan again drew our attention to the statistics on the state debt. As it turns out, the state debt rose again in May of this year, totaling $13.7 billion, up from $13.6 billion as of April.
The majority—$13.2 billion—falls under government debt, with domestic obligations slightly surpassing external ones. The issue of public debt has been discussed many times.
The core issue isn’t borrowing per se, but rather the purpose behind it, how effectively the funds are used, whether they foster sustainable growth, and ultimately, the burden of debt servicing on the state budget. Today, we already have a rather large burden, which sometimes exceeds critical expenditures such as education, healthcare, and social security in terms of scale.
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