ArmInfo.Armenia will receive a loan from the French Development Agency of 100 million euros to finance the budget deficit. On November 24, at a meeting of the Cabinet of Ministers, the Government of the Republic of Armenia approved the draft law "On the ratification of the loan agreement No. CAM 1016 01, concluded between the Republic of Armenia and the French Development Agency of November 17, 2022".
The loan will be provided in two tranches, with a term of up to 20 years, with a 5-year grace period. At the same time, according to the RA Minister of Finance Tigran Khachatryan, Armenia itself can choose to take a loan at a fixed or floating interest rate. Having chosen the latter, Armenia can reconsider its decision in favor of the first one at any moment, he noted. Until the end of this year Armenia plans to apply for the first tranche.
The head of the Ministry of Finance recalled that on November 17, within the framework of the joint budget support program based on the "Fiscal Stability and Development of Financial Markets Program" policy, the Ministry of Finance of Armenia also signed a "Credit agreement between the Republic of Armenia and the Asian Development Bank" in the amount of $100 million.
The main objectives of budget financing are: - improving the efficiency of public finance management and developing money and capital markets; - develop a strategic framework for the transition to a "green" economy and introduce tools aimed at encouraging public and private financing to achieve climate change mitigation and adaptation goals.
In addition, as Tigran Khachatryan pointed out, taking into account the expansion of cooperation, the French side decided to open a permanent representative office in Yerevan. A permanent representative will be appointed in the near future
