Armenia to Receive €150M Budget Loan

The government of Armenia, at its Cabinet meeting on Thursday, approved the loan agreement No. CAM 1030 01 with the French Development Agency.

This budget funding, which constitutes a €150 million loan, is the third phase of the multi-year program (2019-2025), and it has two main objectives: to strengthen economic and financial governance in Armenia, in particular by improving the efficiency of public finance management, and to improve the planning and funding of the country’s transition to a low-carbon and resilient economy, The Caspian Post reports citing Armenian media.

This budget support is planned to be implemented in 2025.

The terms of the loan proposed by the aforesaid agreement are: loan amount: €150 million, co-funding: €150 million from the Asian Development Bank, and this loan will be provided in one tranche.

Interest rate: The borrower can choose a floating or fixed interest rate for each installment. The floating interest rate will be 3.308 percent.

The principal amount of this loan shall be repayable in 38 equal semi-annual payments between 2026 and 2045.

Loan term: 20 years, grace period: one year.

Loan repayments shall be made semi-annually, on June 15 and December 15 of each year.