YEREVAN. - Armenia is going to borrow $50 mln from the World Bank for covering its budget deficit.  

The funds will be borrowed from the International Bank for Reconstruction and Development (IBRD) which is part of the WB.

The loan is allocated for 25 years with the grace period of 14,5 years (only with interest payment). The loan rate is the fixed 6-month US Dollar LIBOR interest. Considering the current Libor rate, the bank interest will constitute 4 percent given the loan agreement is signed at the moment (it will be signed right after the agreement ratification by the parliament).  

Armenian state budget deficit will constitute nearly 190,7 bln AMD (approx. $395) or about 3.5 percent GDP.