Armenia will receive an EUR 80-million loan from the OPEC Fund for International Development under an economic transformation program. The relevant agreement was signed on July 8 and 16. The issue was included among non-reportable items on the government meeting agenda and approved.
According to the draft, the loan constitutes budget support and is also intended to finance the 2026 state budget deficit.
The program will be co-financed with EUR 170.3 million provided by the International Bank for Reconstruction and Development. Total financing will therefore amount to approximately EUR 250.3 million.
This year’s state budget has a deficit of 537.5 billion drams, equivalent to about $1.5 billion at the current exchange rate.
The financing is linked to a number of economic reforms being implemented by Armenia. They mainly cover two areas: increasing economic competitiveness and digitalization, and ensuring a green transition.
To improve the investment environment, a new Law on Investments has been adopted, aimed at clarifying guarantees for investor protection. A Unified Customs Account is being introduced in the customs system.
In the area of competition, the powers of the relevant commission are being expanded, while the body is being renamed the Competition and Consumer Protection Commission.
Laws on Public Information and Cybersecurity have also been adopted to advance the digital economy.
Another key component of the program is developing the green economy and strengthening climate resilience. A Law on Climate was adopted in 2026, while a greenhouse gas emissions monitoring system and green taxonomy are being introduced. Changes are also planned in the area of air quality assessment.
The EUR 80-million loan has an 18-year maturity, including a five-year grace period. The interest rate is floating and stood at 4.241% as of July 30.
The deadline for disbursement of the loan funds is September 30. (Panam)