Armenia approves $150 million ADB loan to support budget

Armenia’s government approved plans on Thursday, August 6, to secure a $150 million loan from the Asian Development Bank (ADB) under a fiscal sustainability and financial markets development programme, local media reported.

The decision was adopted at a cabinet meeting on August 6, with the corresponding agreement submitted to the country’s president for ratification, according to Caliber.Az, citing Armenian media.

The loan forms part of a broader budget support framework envisaged under Armenia’s 2026 state budget law. Authorities estimate that total borrowing from international financial institutions to support the budget, in line with the 2026–2028 public debt management strategy, will amount to about $950 million.

Proceeds from the ADB loan will be used to finance the state budget deficit. Disbursement follows the implementation of reforms agreed with the ADB under the programme’s third subprogramme.

The reform agenda includes strengthening fiscal governance, improving public debt and financial risk management, developing government securities and money markets, expanding financial instruments and the investor base, and enhancing corporate transparency and governance standards.

The loan carries a 15-year maturity, including a three-year grace period. The interest rate is variable and was estimated at 4.58% per annum as of June 3, 2026.

Repayment of principal is scheduled to begin on July 15, 2029, with equal semiannual payments continuing through January 15, 2041.

By Tamilla Hasanova