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. Their combined debt stood at roughly $6.5 billion when Pashinyan came to power in 2018. 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. The government spent 349 billion drams ($950 million) on debt servicing in 2025, almost three times more than in 2017.