Armenia Takes New Loans

Armenia is taking new loans amounting to $100 million and €75 million. The spending directions are known.

During an extraordinary meeting of the RA National Assembly's Standing Committee on Financial-Credit and Budgetary Affairs, the draft law on ratifying the agreement on the provision of a financial loan from the Eurasian Development Bank’s "Stabilization and Development Eurasian Fund" was discussed.

According to Deputy Minister of Finance Edward Hakobyan, the draft law is aimed at financing the deficit projected in the 2024 state budget and includes economic reforms stemming from the priorities of the RA government program.

The main conditions of the agreement are: loan amount of $100 million, currency of loan disbursement and servicing being US dollars, and the deadline for disbursing loan funds set for December 31, 2024.

The committee, presented by Edward Hakobyan, also discussed the draft law on ratifying the financing agreement between the Government of the Republic of Armenia and the International Bank for Reconstruction and Development regarding the "Second Operation of Green, Sustainable and Inclusive Development Policy." This agreement aims to promote green, resilient, and inclusive development in Armenia, improve the legal framework regulating environmental management, enhance human capital development, and increase the effectiveness of anti-corruption and justice sectors.

Edward Hakobyan also presented the draft law on ratifying the loan agreement number CAM 1024 01 C between the Republic of Armenia and the French Development Agency. The program consists of three main components: the first is improving the public financial management system; the second involves strengthening the framework for issuing and managing government securities and the infrastructure of money markets; and the third is developing new tools for financing entrepreneurial activities and ensuring more transparent governance.

The draft laws received a positive conclusion and will be included in the agenda of the upcoming sessions of the National Assembly.