YEREVAN, October 24. /ARKA/. The Armenian parliament on Thursday ratified a project for Armenia to receive a loan of 75 million euros from the French Development Agency, which will be used to support the country’s state budget.
Finance Minister Vahe Hovhannisyan said that the program consists of three main components: improving the public finance management system, issuing government securities and strengthening the financial services market, developing new instruments for financing business activities and ensuring a higher level of transparency.
According to him, under the terms of the loan agreement, the Armenian government, in turn, must increase the efficiency of budget planning, modernize the public procurement system, and develop green policies.
Hovhannisyan noted that the credit funds are provided at a floating rate of six-month EULIBOR plus a margin of 0.5%, which as of July 27 is 4.178%. The Armenian side can change the floating rate to a fixed rate at any time. The loan repayment period is 20 years, of which 5 are a grace period for repayment. -0-
