ArmInfo. The World Bank, through the International Bank for Reconstruction and Development, will provide Armenia with a ?170.3 million loan to implement the "Armenia Transition and Development Policy Loan." The Armenian government approved the agreement with the Bank at its meeting on May 27.
The draft agreement notes that the loan proceeds will be used to support the country's state budget and will be repaid in one tranche. The annual interest rate on the loan will be a six-month Euribor plus a floating spread. The loan term is 28 years, of which the first 10 years will be a preferential term. The loan is repaid in equal semi-annual installments, with the first payment due on June 15, 2036, and the last on June 15, 2053. Loan servicing payments are made twice a year - on June 15 and December 15.
The implementation of measures and reforms in a number of areas is a prerequisite for receiving budget support. The program is being implemented jointly with the OPEC Fund, which will provide an additional EUR 80 million. The project envisages liberalization of investment policy and trade, and measures to promote competition. Reforms in the areas of investment and customs were stipulated as a condition for the loan.
In particular, a new investment law was adopted, establishing guarantees for the protection of investors and those responsible for investment policy. In response to the World Bank's requirements, the Armenian authorities amended the law on customs regulation, introducing a Single Customs Account to optimize customs payments and reduce customs clearance times. Armenia also adopted amendments to the Law on the Protection of Economic Competition, expanding the powers of the Commission for the Protection of Competition to protect consumer interests and curb unfair commercial practices.
Earlier, the Cabinet of Ministers also approved and submitted to the National Assembly for approval new laws "On Public Information" and "On Cybersecurity." These laws define the institutional framework for cybersecurity and data management, creating greater opportunities for the development of digital services in the economy by expanding access to and use of public data, as well as measures to ensure cybersecurity.
