ArmInfo. The World Bank will provide Armenia with a budget loan in the amount of 92.3 million euros. The loan agreement "Green, sustainable and inclusive development policy" was signed at the Ministry of Finance of Armenia between Head of the Ministry of Finance Vahe Hovhannisyan and Country Manager of the World Bank for Armenia Carolin Geginat.
According to the Armenian Ministry of Finance, the budget support funds will be directed to the financing of the deficit defined by the RA Law "On the 2023 State Budget of the Republic of Armenia".
The project plans to implement the following processes: promoting climate change mitigation and adaptation, as well as improving the regulatory framework for environmental management; strengthening equity and promoting human capital development; improving the efficiency of the anti- corruption system and the justice sector.
It should be reminded that the proposal to conclude a loan agreement was approved at the meeting of the RA government on March 23. The loan is provided for a period of 19 years with a five-year grace period at a fixed interest rate (6-month EURIBOR) plus a floating spread (updated by the Bank quarterly).
The indicative interest rate established before the negotiations was 3.492% (2.822%+0.67%). Loan servicing payments must be made every six months - on June 15 and December 15. The repayment of the principal amount will be carried out from June 15, 2028 to June 15, 2041 in equal installments (3.57% of the loan amount), and the last repayment - on December 15, 2041, in the amount of 3.61% of the loan amount. Commitment fee: an annual rate of 0.25% calculated on the unallocated loan amount, calculated 60 days after the signing of the agreement, is paid simultaneously with the payment of interest payments, a one-time fee of 0.25% of the loan amount, which must be paid from the borrower's own funds no later than 60 days after the entry into force of the agreement, and amounts to 230,750 euros.
Since Armenia joined the World Bank in 1992, the total amount of loans and grants issued to the republic amounted to about $2.53 billion.
