New Loan: The Government Increases the Daily Growing State Debt - 'Hraparak'

Armenia is preparing to take a loan of 50 million euros from OPEC, thereby increasing the country's daily growing state debt. OPEC is the organization of oil-producing countries. The loan is provided to Armenia under the program named 'Green, Resilient, and Inclusive Development Program', however, the same draft decision states that 'Budget support funds will be directed towards financing the deficit defined by the Law of the Republic of Armenia on the State Budget for the year 2023; therefore, the timely receipt of loan funds is of great importance for financing the expenditures outlined in the categories of the state budget.'

This is another instance where Prime Minister Nikol Pashinyan speaks about unprecedented increases in the Armenian budget, but in reality, the planned budgetary measures are not being implemented due to the deficit. As a result, Armenia is taking loans and increasing its state debt, which has long since surpassed the threshold of 10 billion dollars.