ArmInfo. As part of its annual consultations with the Armenian authorities, the French Development Agency (AFD) signed a financing agreement for €270 million.
According to the press service of the French Embassy in Armenia, the French Development Agency (AFD) and the Armenian Ministry of Finance signed a financing agreement for €250 million under the first subprogram of the new multi-annual budget financing program for public policies for 2026-2028. This is the largest program financed by AFD in Armenia to date. The project, co-financed by the Asian Development Bank (ADB), is part of a partnership that began in 2016.
The first loan of €250 million provided to the Armenian Ministry of Finance is a record amount, intended to support government reforms in financial management. The program supports three reform areas: Improving public financial management and budget policy at the national and, for the first time, subnational levels; strengthening financial systems and promoting sustainable development finance; strengthening domestic resource mobilization and creating an enabling environment for private investment.
A second loan of €23 million, denominated in Armenian dram for the first time, finances housing for vulnerable families, particularly those displaced from Nagorno-Karabakh. The French Development Agency and the National Mortgage Company (NMC), a state-owned financial institution specializing in mortgage refinancing, signed an agreement for a new credit line of €23 million with a repayment period of eight years, including a two-year grace period. For the first time in Armenia, this financing is provided in Armenian dram, thanks to a partnership with TCS and a contribution from the European Union.
At least 50% of this credit line, as part of the state housing assistance program, will be directed to displaced persons from Nagorno-Karabakh. This action complements the French Development Agency's support for Armenia's public housing policy for the most vulnerable groups.
"Five months after the state visit of the President of the French Republic to Armenia, the commitments made in May are beginning to be implemented," the diplomatic mission said in a statement.
It is noted that since 2012, the French Development Agency (AFD) has been supporting the Armenian authorities, economic actors, and civil society in a number of areas: public finance, housing, water resources and agriculture,
climate change, entrepreneurship, and financial inclusion.
The total budgetary funds allocated by AFD to the country now exceed €850 million.
"The signing of these agreements demonstrates the strength of the partnership between the French Development Agency and Armenia. They contribute to the stability of the Armenian economy and ensure access to adequate housing for the most vulnerable groups." "Together with the Asian Development Bank (ADB) and the Armenian government, we are committed to ensuring these commitments are met in the long term," said Rima Le Coggi, Regional Director for Enlargement and European Neighborhood at the French Development Agency.
The French Development Agency finances and supports more than 4,000 projects in 160 countries, covering access to water and energy, transport infrastructure, quality job creation, green industrialization, and support for healthcare and education systems. The FDA Group, through its subsidiaries—the French Development Agency (FDA) for government support, Proparco for business financing, and Expertise France for technical expertise—addresses all aspects of sustainable development. Every year, the FDA Group provides financing in the amount of approximately EUR 14 million, mainly in the form of loans repaid by partners, and pays dividends to the state shareholder, namely EUR 100 million in 2026, derived from net profit for 2025.
