Armenia to attract $150 million loan from ADB for budget support

YEREVAN, August 6. /ARKA/. At a meeting on Thursday, the Armenian government approved a $150 million loan agreement with the Asian Development Bank (ADB) under the “Fiscal Sustainability and Financial Market Development – ​​Subprogram 3” program.

As noted in the decision rationale, the loan proceeds will be used to finance Armenia’s state budget deficit in 2026.

The country’s need for budget support loans, planned to be attracted from international financial institutions this year, is estimated at approximately $950 million.

The program envisages reforms in three main areas: strengthening fiscal management and public debt management, developing the government securities and money markets, expanding the range of financial instruments and the investor base, and improving corporate transparency and corporate governance.

The loan has a term of 15 years, including a three-year grace period. The principal will be repaid in 24 equal semi-annual installments, from July 15, 2029, to January 15, 2041.

The interest rate is floating. According to the document, with the SOFR rate at 3.61% as of June 3, 2026, the interest rate is 4.58% per annum.

The calculation formula includes the SOFR rate, an ADB margin of 0.5%, and a maturity premium of 0.1%.

In addition, a commitment fee of 0.15% per annum is charged on the undrawn loan amount.

spot_img

POPULAR

Significant inflows of transfers and capital to Armenia boosted reserves to a record $6.5 billion in August – WB

Thanks to significant remittance and capital inflows, gross reserves in Armenia rose to a record $6.5 billion in August, equivalent to 4.3 months of import coverage, according to the World Bank's Armenia "Monthly Economic Update – September 2026."

Armenia’s capital market still lags behind the economy’s real potential: Cube Invest’s CEO

The depth of Armenia's capital market still lags behind the country's real economic potential, said Mikael Margaryan, CEO of the investment company Cube Invest.

Cube Invest is the first investment company in Armenia to issue bonds worth 5 billion drams: Cube Invest’s CEO

Cube Invest has become the first investment company in Armenia to issue bonds on the local market, announced Cube Invest CEO Mikael Margaryan.

Unibank’s Renamed “Tumanyan” Branch Opens at a New Location

Unibank’s branch, previously located in the Moscow Cinema building, has moved to a new location and has been renamed "Tumanyan."

No liquidity shortage in Armenia, question is about business readiness: Central Bank Chairman

There is no liquidity shortage in Armenia, but the question remains about whether businesses meet investor requirements, according to Central Bank Chairman Martin Galstyan.

LATEST NEWS

spot_imgspot_imgspot_img