Armenia to take out loans to cover budget deficit

ArmInfo. Armenia will attract loans to finance the deficit of the state budget of the country in 2024. At a meeting on October 11, the Committee of the National Assembly of the Republic of Armenia on Financial, Credit and  Budgetary Affairs approved agreements with the Eurasian Development Bank, the International Bank for Reconstruction and Development and the French Development Agency.

According to the Deputy Minister of Finance of the Republic of  Armenia Eduard Hakobyan, the agreement with the EDB provides for the  provision of a loan of $100 million to Armenia to continue the reform  programs in the economic sphere, arising from the goals of the RA  government plan. The EDB will provide funds in US currency with the  payment of the last tranche by December 31, 2024.

Another loan agreement signed with the IBRD is planned to receive  $92.3 million and a grant of $16 million, which will be used to  implement the "Second Operation of the Green, Sustainable and  Inclusive Development Policy". It envisages activities to promote  climate change mitigation and adaptation, improve the legal framework  for environmental management, strengthen equality and promote human  capital development, improve the effectiveness of the anti-corruption  framework and the justice sector. The program will also support the  solution of urgent problems of 100 thousand people forcibly displaced  from Nagorno-Karabakh.

With the third agreement, the French Development Agency will provide  Armenia with financial assistance in the form of a loan of 75 million  euros. The program consists of three main components - improving the  public financial management system, strengthening the system of  issuance and management of government securities and the  infrastructure of money markets, and developing new instruments for  financing entrepreneurship and ensuring more transparent management.