ArmInfo. In 2020, the EU allocated 68.7 million euros for budgetary assistance to Armenia, RA Acting Minister of Finance Atom Janjughazyan stated on June 3, in the parliament during the preliminary discussion of the annual report "On the execution of the state budget of the Republic of Armenia for 2020".
Meanwhile, the financial authorities of Armenia have repeatedly stated that 2019 will be the last year of attracting credit funds for budget assistance and the authorities will switch to targeted lending to strengthen the foundations of the economy. It was noted that within the framework of the policy enshrined in the Program of Medium-Term Expenditures for 2020-2022, in the medium term, the republic does not plan to attract loans from budget assistance, which is an unprecedented fact, at least for the last 10 years.
Nevertheless, in early November 2018, Armenian Finance Minister Atom Janjughazyan told ArmInfo that the Armenian government intends to refuse external financial assistance in the form of budget loans not from 2020, but from 2021. According to Janjughazyan, the Ministry of Finance is making efforts not to attract further loans for budget assistance. As the chief financier of Armenia pointed out, today many consider this instrument quite attractive, since a loan for budget support differs from other types of borrowing in that it does not have a program of specific targeted spending and is provided on concessional terms. Nevertheless, according to him, such concessional loans are dangerous because the country may become completely dependent on external borrowing.
