According to the draft law on Ratifying the loan agreement No. CAM 1016 01 between the Republic of Armenia and the French Development Agency signed on November 17, 2022, the Armenian side will be allocated 100 million EUR in two tranches.
The RA Deputy Minister of Finance Vahe Hovhannisyan stated that the precondition for receiving budget support funds is the implementation of measures and reforms in a number of areas based on mutually agreed political actions.
The Deputy Minister of Finance also noted that the scope of the planned program includes increasing the efficiency of fiscal planning, transparency, risk management, state expenditure, reforms of public-private partnership system, modernization of the public procurement system, as well as the improvement of the debt management system of the government, the development of financial and capital markets, etc.
Vahe Hovhannisyan presented for debate the draft law on Ratifying the loan agreement “Fiscal stability and financial markets development program” signed between the Republic of Armenia and the Asian Development Bank on November 17, 2022, according to which, the Armenian side will be allocated 100 million USD.
The Deputy Minister noted that the budget support funds will be used to finance the deficit defined by the 2022 state budget.
The loan will be repaid within 12 years, the interest rates are floating.
It was noted that the timely receipt of loan funds is of great importance from the point of view of financing the expenditures provided by the categories of the state budget.
The Committee members endorsed the draft laws.
The international agreements were debated at the extraordinary sitting of the NA Standing Committee on Financial-Credit and Budgetary Affairs on December 8.