YEREVAN, August 6. /ARKA/. The Armenian government approved a loan agreement with the Asian Development Bank (ADB) for $150 million at a meeting on Thursday under the program "Tax-Budget Sustainability and Development of Financial Markets - Subprogram 3".
The loan funds will be used to finance the state budget deficit of Armenia in 2026.
The need for credit resources for budget support, which is planned to be attracted from international financial organizations this year, is estimated at about $950 million.
The program includes reforms in three main areas: strengthening budget-tax management and public debt management systems, developing the government securities market and money market, as well as expanding the range of financial instruments and investors, increasing the transparency of companies and the quality of corporate governance.
The loan is provided for a period of 15 years, including a three-year grace period. The principal repayment will be made in 24 equal semi-annual payments from July 15, 2029, to January 15, 2041.
The interest rate is floating. According to the document, with the SOFR rate at 3.61% as of June 3, 2026, it amounts to 4.58% per annum.
The calculation formula includes the SOFR rate, ADB's margin of 0.5%, and a maturity premium of 0.1%.
In addition, there is a commitment fee of 0.15% per annum charged on the undrawn amount of the loan.
