Plus 250 million euros: new loan to cover budget deficit

Armenia intends to receive a new loan of 250 million euros from the French Development Agency. The draft decision has been included in the agenda of the Oct. 1 government session.

According to the draft, the Asian Development Bank will also take part in financing the lending program. The bulk of the loan funds is planned to be directed toward financing the state budget deficit for 2026.

The term of the planned loan is 20 years, five of which are a grace period. The government has yet to decide whether the loan will carry a fixed or a floating interest rate. In the case of a floating rate, it will be 5.1% per year.

Recall that at its Sept. 3 session, the government approved a draft for providing Armenia with another loan.