The government will mainly use the two long-term loans allocated by the Asian Development Bank and the World Bank to finance its budget deficit projected at 536 billion drams ($1.47 billion) this year. The government and the Armenian Central Bank have already borrowed some $500 million since November. The sharp increase has been driven by the government’s more expensive internal borrowing as opposed to low-interest loans provided by the International Monetary Fund, the World Bank and other multilateral institutions. Armenian opposition figures regularly cite it in their criticism of the government’s economic policies. The government spent 349 billion drams ($950 million) on debt servicing in 2025, almost three times more than in 2017.