Armenia gets into debt to cover its budget deficit

Armenia's National Assembly ratified two loan agreements at an extraordinary meeting on December 9.

The allocated funds are planned to finance the state budget deficit, Caliber.Az reports with reference to the Armenian media.

We are talking about the ratification of the loan agreement "Program for Fiscal Stability and Development of Financial Markets" signed between the Republic of Armenia and the Asian Development Bank on November 17, 2022, and the ratification of loan agreement No 1016 01 signed on November 17, 2022, between the Government of the Republic of Armenia and the French Development Agency.

The Asian Development Bank loan will be granted for a period of 12 years. Three years is the preferential time frame. At the same time, 30 per cent of the funds will be grant funds.

The French Development Agency will also provide a loan. We are talking about 100 million euros. This loan has a 20-year repayment period. There will be a five-year grace period.

The government's initiative for an Asian Development Bank loan was supported by 59 deputies. There were 26 "against". On loan from the French Development Agency, there are 63 "for" votes and 27 "against."