1 / 7

The Green, Resilient and Inclusive Development Policy Operation Loan Agreement between the Republic of Armenia and the OPEC (Organization of the Petroleum Exporting Countries) Fund for International Development was signed on October 3 and 23, 2023.

According to the Agreement, it is planned to provide a loan of 50 million euros to the Republic of Armenia.

“The funds will be used to finance the deficit of the 2023 state budget or to meet the need for financing expenses, for which we set a need of 350 million USD in the state budget,” the RA Deputy Minister of Finance Eduard Hakobyan said, presenting the draft law on Ratifying the Green, Resilient and Inclusive Development Policy Operation Loan Agreement between the Republic of Armenia and the OPEC Fund for International Development at the extraordinary sitting of the NA Standing Committee on Financial-Credit and Budgetary Affairs on December 12.

According to the Deputy Minister, since we are dealing with the planned amount of capital expenditures of 550 billion and a deficit of 290 billion drams, in fact, the money will be directed to capital expenditures. They are programmes regarding schools, kindergartens, roads, defense infrastructures, which in turn lead to an increase in the potential of the economy. In addition, a number of key measures resulting from the Government's pgogramme, which have already been implemented and have already been discussed with the World Bank, have become a precondition for budgetary funds.

The reform framework of the programme includes a number of measures.

According to the Deputy Minister, the principal amount will be repaid from October 15, 2028 to October 15, 2042 in the amount of 3.33% of the loan amount, and on April 15, 2043 - in the amount of 3.43% of the loan amount.

The Chair of the NA Standing Committee on Financial-Credit and Budgetary Affairs Gevorg Papoyan, presenting the observations, proposed to specify exactly what the money will be spent for and for what purpose, which will enable to ensure inclusiveness.

As a result of debate, the Committee endorsed the draft law.