ArmInfo. The Asian Development Bank will provide Armenia with $ 40 million to support the government's consistent efforts to strengthen fiscal stability and develop financial markets in the country. The government of Armenia at the meeting on November 2 gave a go- ahead for signing an agreement with the bank.
According to RA Minister of Finance Vardan Aramyan, the entire assistance program is estimated at $ 90 million, of which the first $ 40 million is expected in 2017. The country's parliament has already approved the amount of budget assistance of $ 220 million, and the funds provided by ADB are part of this amount. The loan is aimed at financing the budget deficit. Funds of $ 40 million are provided with a maturity of 15 years, of which the first three are preferential. The interest rate will be six-month Libor + 0.6%, which is now 2%.
On October 25 2017, the Board of Directors of the Asian Development Bank approved granting Armenia a loan of $ 40 million, which will be aimed at facilitating consistent efforts of the government to strengthen fiscal stability and develop financial markets in the country. "Effective management of public debt and developed financial markets are necessary for long-term growth and stable development of Armenia," said Shane Rosenthal, Director of the Permanent Mission of ADB in Armenia. According to him, the bank assists the Armenian government in implementing a number of reforms to increase transparency, improve governance and stimulate private investment, which will create more jobs in the country. The efficiency programs of the state administration and financial markets will contribute to the expansion of financial markets in Armenia and will help the government implement the goals aimed at strengthening the fiscal stability of the financial sector of the republic. The program also aims to stimulate corporate transparency, which will improve the investment environment and expand investment in the economy.
According to the strategy for 2014-2018, ADB plans to provide Armenia with financial assistance of about $ 500 million. The funds are directed to support infrastructure, energy and social services to promote a flexible, comprehensive and stable development of the country. In the transport sector, ADB will continue to assist in the construction of the North-South transport corridor, as well as in strengthening transport links between cities with high poverty levels. For regional cooperation and integration of the country, ADB will provide support for the development of roads connecting Armenia with neighboring Georgia. In addition, ADB will assist in the sustainable development of cities with a high level of poverty, assisting local governments in developing coordinated plans and providing the investments needed to modernize infrastructures, including water supply, and the management of urban roads and solid waste. The worn-out electric power infrastructure of Armenia and the strong dependence on imported mineral fuel weaken the energy security of the country. ADB will assist in solving this problem by supporting the development of renewable energy sources, as well as the restoration and modernization of energy infrastructures.
Armenia joined ADB in 2005 and is included in the group of countries with mixed (preferential and usual) financing. ADB deals with poverty reduction in the Asia-Pacific region by stimulating economic growth and regional integration.