World Bank Suspends Additional 1.7% Interest Rate on Loans to Armenia for One Year

In light of the economic deterioration forecasts due to the coronavirus pandemic in 2020, international financial institutions are making efforts to support member states in overcoming the repercussions of the pandemic. In this context, as a result of joint work between the Republic of Armenia and the World Bank, the previously decided implementation of an additional interest rate (annual rate of 1.7%) on a number of loans provided to Armenia by the International Development Association has been suspended for one year. This suspension will apply during the fiscal year from July 1, 2020, to June 30, 2021.

According to assessments by the World Bank and the Armenian Ministry of Finance, the one-year suspension of the additional 1.7% interest rate is expected to result in savings of approximately $13 million for the Armenian state budget in terms of external interest payments.