ArmInfo. The Armenian government will obtain two new large loans totaling over $320 million to finance the country's 2026 state budget deficit. Approving these loan agreements is included in the agenda of the Cabinet meeting to be held on August 6.
As noted in the rationale for the draft decision, one of the loan agreements, for $150 million, will be signed with the Asian Development Bank. These funds are intended to support fiscal management and effective oversight of public debt, as well as to develop the government securities and financial markets. The loan is provided for a term of 15 years, three of which will be a grace period for repayments, with a floating interest rate, currently at 4.58%.
A second loan agreement for EUR 70.3 million was signed with the International Bank for Reconstruction and Development. This program is being implemented jointly with the OPEC Fund for International Development, which will provide EUR 80 million. The term of the
World Bank loan is 28 years, with a 10-year grace period, and the annual floating interest rate is approximately 3.93%. The loan proceeds will be used for economic transformation, investment and trade liberalization, digitalization, as well as the transition to a green economy and climate reform.
It should be noted that as of the end of the first quarter of this year, Armenia's public debt (domestic and external) exceeded $14 million. Furthermore, the Central Bank of Armenia also has a debt of approximately $500 million.
