Finance Minister highlights increasing interest of international investors in Armenia

Armenia’s government debt servicing costs in 2026 are likely to be lower than planned, Finance Minister Vahe Hovhannisyan said at a press briefing on January 21.

“We expect debt servicing costs to be lower than originally planned. In other words, the amount allocated for debt servicing in the 2026 budget will most likely be at a lower level. This is due to positive developments in the markets, not only internationally but also in Armenia. For example, while in 2024 we issued 10-year treasury bonds at an interest rate of 9.6 percent, I am pleased to note that in the first auction of 2026, the same bonds had an interest rate of 8.09 percent. This is a very positive change, which is partly due to increased monetary liquidity in Armenia’s banking system, but also because international institutional investors continue to show interest in Armenia, participating in our local auctions and thereby positively influencing our interest rates. This is the policy we have spoken about for years: that efforts should be made to attract foreign investors to Armenia, and this is effectively happening. At present, their share in our bonds has reached more than 7 percent. Previously, this was even below 1 percent,” the Minister said.