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.
