Armenia to take out EUR 45.3mln loan to improve healthcare quality 

ArmInfo. On April 3, the Government of Armenia approved the draft law between the Republic  of Armenia and the Asian Development Bank>, signed on February 28,  2025.

As stated in the explanatory note to the document, the results-based  lending (RBL) program proposed by the Asian Development Bank (ADB) is  expected to attract a loan of 45.3 million euros.

The objective of the loan program is to promote reforms in the  following areas:

Construction and improvement of healthcare facilities,

Digitalization and institutionalization of quality assessment and  accountability of medical services,

Licensing of medical institutions,

Development of human capital in the healthcare sector,

Implementation of a telemedicine pilot program,

Improving the use of e-health tools.

The terms of the loan agreement   signed between the Republic of Armenia and the Asian Development Bank  are as follows:

The interest rate on the loan of 45.310 million euros is floating,  the annual interest rate on the loan is: 6- month Euribor + 0.5%  margin + 0.1% (term premium) + 0.12% (currency premium). As of  10.03.2025, the interest rate will be 3.11%.

The commitment fee will be 0.15% per annum, accrued on the unused  loan amount, the calculation begins on the 60th day from the date of  signing the agreement, paid semi-annually, simultaneously with the  payment of interest. Loan term: 18 years, grace period of the loan: 7  years, loan repayment term: 11 years, the final date for issuing  (using) the loan: 31.12.2028.

By the end of February 2025, Armenia's public debt reached $13  billion 027.8 million, of which $12 billion 524.1 million is the  government's debt. The Asian Development Bank is the second largest  creditor of the Republic of Armenia - 21.5% of external loans.