18 Nov 2022 13:15

Armenia borrows $100 mln from ADB, 100 mln euros from AFD

YEREVAN. Nov 18 (Interfax) - Armenia has signed loan agreements with the French Development Agency (AFD) for 100 million euros and the Asian Development Bank (ADB) for $100 million, respectively, the press service of Armenia's Finance Ministry said in a statement.

According to the ministry's press service, the agreements were signed as part of the joint budget assistance program.

"The main goals of budget financing are to strengthen the efficiency of financial management, develop the capital market, and develop a strategy for transiting to a 'green' economy," the Finance Ministry said.

As previously reported, the AFD loan is for 20 years with a five-year grace period. The funds will be disbursed in two installments by November 2023, and they are intended to finance the budget deficit.

Armenia's 2022 government budget was approved with a deficit of 236.2 billion drams, or 3% of GDP. It is also expected that the budget deficit should be lower at the end of the year at 204.2 billion drams, or 2.5% of GDP.

The parameters of the government budget for next year are currently under discussion in the relative parliamentary commissions. Armenia currently estimates the government's budget deficit at 288.9 billion drams, or 3.1% of GDP, for 2023.

The official exchange rate as at November 18, 2022, is 395.53 drams/$1.