The Armenian government plans to obtain a EUR 250-million credit line from the French Development Agency. The corresponding draft decision has been included on the agenda of the government’s October 1 meeting. The loan to Armenia will also be financed by the Asian Development Bank.
The loan program aims to ensure quality and sustainable public spending and investment, as well as reduce Armenia’s dependence on external financing.
The funds to be raised are expected to be allocated to financing the 2026 state budget deficit. In its justification, the Finance Ministry said that “the timely receipt of loan funds is important for financing expenditures envisaged under the state budget categories.”
Under this year’s draft budget, the government plans to raise 1.6 billion in loans to finance the deficit. In early August, the government decided to secure a $320-million loan. The lenders were the Asian Development Bank and the International Bank for Reconstruction and Development. In early September, the government raised another EUR 80-million loan from OPEC, also intended to finance the budget deficit.
The government has yet to decide whether the loan will be repaid at a fixed or floating interest rate. If the floating-rate option is selected, the annual rate will be 5.1%. The loan will have a 20-year maturity, including a five-year grace period. (Panam)