Armenia to boost budget with Asian Development Bank loan

Armenia will take out a $150 million loan from the Asian Development Bank to replenish the state budget.

According to Caliber.Az, citing Armenian media, the draft loan agreement was approved on Thursday at a meeting of the Armenian government.

The funds will be used for general budget support, without being tied to specific expenditure items.

At the same time, with the bank’s support and within the framework of the loan, the government will carry out work to improve financial oversight of infrastructure investments and to develop the government bond market.

The loan will have a maturity of 15 years, including a three-year grace period. The interest rate will be floating, set at the international SOFR rate plus a margin of 0.97%. Based on the current SOFR rate of 3.69%, the loan’s interest rate at the time of approval, expected in the near future, will amount to 4.66%.

Armenia’s Ministry of Finance has estimated the country’s need for external borrowing in 2026 at around $675 million.

It was previously reported that additional borrowed funds are required to finance Armenia’s universal healthcare programme.

By Tamilla Hasanova