Armenia Secures New Loan of 80 Million Euros

Armenia is taking out a new loan of 80 million euros from OPEC, the Organization of the Petroleum Exporting Countries, to cover the budget deficit. According to a government decision adopted today, the funds must be utilized by September 30 of this year.

“The timely receipt of loan funds is crucial for financing the expenditures envisaged in the state budget categories,” the government stated.

This year, the state budget has a deficit of 537.5 billion drams, approximately 1.5 billion dollars at the current exchange rate. The Armenian government is to repay this new loan by January 15, 2044. The principal repayment is set to commence in 2031, with a five-year grace period prior to that.

The interest rate is floating, currently at 4.241 percent as of July 30 of this year.