The Armenian government is securing an 80 million euro loan from the OPEC Fund for International Development to finance its state budget deficit, according to reports from the Operative Information Center-OMM.
The decision was finalized during a recent Cabinet of Ministers meeting, following an agreement reached between the parties on April 29. The funds are earmarked specifically to cover shortfalls in the state budget. Key conditions for the loan include enhancing public administration efficiency, increasing tax collection rates, and strengthening overall financial stability within the country.
This financial arrangement is aligned with broader reform programs previously supported by a 170.3 million euro loan from the World Bank. As part of these reforms, the government plans to implement several legislative changes, including amendments to the law on "Economic Competition and Consumer Protection," the adoption of a new law on "Cybersecurity," and the introduction of a green economy package focused on ecological transition and waste reduction.
The loan is structured with an 18-year maturity period, including a 5-year grace period. The interest rate is set at the 6-month Euribor rate (currently 2.606%) plus a fixed margin of 1.56%, resulting in an annual interest rate of approximately 4.166%.
The OPEC Fund for International Development, established in 1976, serves as a multilateral development finance institution that provides financial assistance to developing countries. Its involvement in Armenia reflects the country's ongoing reliance on international debt instruments to manage its fiscal obligations. For the 2026 fiscal year, Armenia's total projected budget deficit is estimated at approximately 1.263 billion euros, which the government intends to cover through a combination of foreign loans and the issuance of state bonds.
