ArmInfo. French Development Agency will lend EUR 40 mln loan, which will be allocated for funding the deficit of the state budget of Armenia. The appropriate Agreement with FDA is ratified by National Assembly of Armenia on December 23.
Presenting the Draft Agreement, the Deputy Finance Minister Armen Hayrapetyan mentioned, that the document was signed on November 30, 2016. It assumes rendering a budget loan to Armenia for 20 year term within grace period for the first 6,5 years. The assets will be allocated with fixed rates plus flexible margins. The loan is aimed at the implementation of state reforms in the field of tax and budget, social development, environmental sustainability improvement.
The Deputy Minister accentuated that the state budget deficit in 2017 will form 2,8 % of GDP, or about AMD 150 bln, and the resources involved will give an option to solve a number of problems, including the wages payouts issue. Launching this loan will not lead to decrease of the country's solvency . Armenian government is intended to involve such loans to capsulate a comprehensive field for investments attraction. According to him, the payouts top will be in the years of 2020 and 2025, when except the body amount of involved loans, a need to attract Eurobonds will occur also. In 2016 Armenia fulfilled all the duties in respect to state debt payouts.
According to the budget of Armenia for 2017, the expenses items form AMD 1 trln 377 bln ( with the expenses/GDP correlation at 25,3%), and the revenues part is AMD 1 trln 186,3 bln ( with the expenses/GDP correlation at 21,8%), within the deficite forming AMD 197 bln (deficit/GDP correlation 3,5%)