Debt increase directed at defense sector, says finance minister

YEREVAN, OCTOBER 28, ARMENPRESS. The debt-to-GDP ratio is expected at 49,8% in the end of 2024, and 53,5% in the end of 2025, finance minister Vahe Hovhannisyan has said.

“The budget’s deficit will be 5,5% and the state debt will grow compared to 2024. As of this moment the state debt amounts to 12,5 billion dollars,” Hovhannisyan said.

He said the absolute level of the debt is not significant and what matters is its comparison with the GDP.

“The state debt can grow or decrease due to various needs. What matters is not the absolute level of the state debt but generally the efficiency of the expenditures envisaged in the budget. If our revenues and opportunities are growing with a sufficient pace, then the increase of the debt is not a problem.”

The increase of foreign debt is directed to capital expenditures, particularly the defense sector, Hovhannisyan said.