The government of Armenia, at its Cabinet meeting Thursday, approved the loan agreement No. CAM 1030 01 with the French Development Agency.

This budget funding, which constitutes a €150 million loan, is the third phase of the multi-year program (2019-2025), and it has two main objectives: to strengthen economic and financial governance in Armenia, in particular by improving the efficiency of public finance management, and to improve the planning and funding of the country’s transition to a low-carbon and resilient economy.

This budget support is planned to be implemented in 2025.

The terms of the loan proposed by the aforesaid agreement are: loan amount: €150 million, co-funding: €150 million from the Asian Development Bank, and this loan will be provided in one tranche.

Interest rate: The borrower can choose a floating or fixed interest rate for each installment. The floating interest rate will be 3.308 percent.

The principal amount of this loan shall be repayable in 38 equal semi-annual payments between 2026 and 2045.

Loan term: 20 years, grace period: one year.

Loan repayments shall be made semi-annually, on June 15 and December 15 of each year.