ArmInfo.The Armenian government approved the loan agreement between the Republic of Armenia and the French Development Agency (FDA). The corresponding draft was presented by RA Minister of Finance Vahe Hovhannisyan during a government session on September 25.
This budget funding, which constitutes a ?150 million loan, is the third phase of a multi-year program (2019-2025) and has two main objectives: to strengthen economic and financial management, in particular by increasing the efficiency of public financial management and to improve the planning and financing of the transition to a low-carbon and sustainable economy.
The program includes three main thematic components: - improving the public financial management system for the effective and sustainable delivery of public services and infrastructure; - Strengthening the framework for issuing and managing government securities and the money market infrastructure; - Developing new instruments for financing entrepreneurship and ensuring more transparent governance.
The program is being implemented jointly with the Asian Development Bank, The loan terms proposed under the agreement are as follows: loan amount - EUR 150 million, co-funding - EUR 150 million from the Asian Development Bank. The loan will be provided in one tranche. Interest rate: for each tranche, the borrower can choose a floating or fixed interest rate, the floating interest rate will be 3.308%. The principal debt is repaid in 38 equal semi-annual payments, between 2026 to 2045. Loan term: 20 years, grace period: one year.
