YEREVAN, June 20. /ARKA/. The Armenian government approved a loan agreement with the French Development Agency (Agence Française de Développement, AFD) worth €75 million on Thursday.
The agreement is expected to be signed on June 26. The funds will be used to pay off the state budget deficit of Armenia, subject to the implementation of measures to improve the budget system.
Armenia’s Ministry of Finance agreed with the French side on an action plan to increase the transparency of budget planning and the efficiency of budget expenditures by improving the public procurement system. It is also planned to develop new measures to finance the “green economy”.
AFD has been present in Armenia since 2013, participating in projects that contribute to the fight against climate change, among other things. The organization operates in the areas of sustainable management and conservation of natural resources (irrigation, forests), urban infrastructure (transport, water supply, waste management, pollution control), energy transition (renewable energy sources, energy efficiency and energy sector reform), and public finance management.
