The Armenian government has approved the proposal to sign Loan Agreement No. CAM 1030 01 between the Republic of Armenia and the French Development Agency (AFD).
Deputy Prime Minister Tigran Khachatryan, who chaired the Cabinet meeting, stated that the loan will be used to help finance the 538 billion dram budget deficit planned for 2025, according to Panorama.am .
Finance Minister Vahe Hovhannisyan explained, “The draft authorizes the Minister of Finance to sign the agreement, which is aimed at improving the effectiveness and stability of financial services in Armenia, as well as enhancing financial sector development through the implementation of a budget support program.”
According to the minister, this marks the third phase of a multi-year budgetary support initiative that began in 2019 and involves €150 million in loan funds.
“It has two main objectives: to strengthen economic and financial governance by improving fiscal management efficiency and to support the planning and financing of a transition to a low-carbon and resilient economy,” Hovhannisyan stated.
He added that under this loan program, the government will adopt a strategy for the development of a green and sustainable economy, while the Ministry of Economy will draft a concept for the foundations of a circular economy.
The government has also approved the draft law “On the 2026 State Budget of the Republic of Armenia,” which will be submitted to the National Assembly under the established procedure.
