The Armenian government has approved the signing of a loan agreement with the OPEC Fund for International Development, paving the way for an €80 million financing package aimed at covering the country’s budget deficit.

Armenia’s Ministry of Finance has been authorized to finalize the agreement under the country’s Economic Transformation Program, The Caspian Post reports via TASS.

Under the deal, the OPEC Fund will provide Armenia with an €80 million budget support loan designed to help finance public spending and support ongoing economic reforms.

The loan will have an 18-year maturity period, including a five-year grace period before repayments begin. The interest rate will be variable, set at the six-month Euribor plus 1.56 percentage points. As of June 18, the combined rate stood at 4.166%.

The financing will provide additional fiscal flexibility as Armenia continues implementing economic transformation initiatives and development projects.