Armenia to receive $152 million in budget support loans

12.12.2019 14:48
Armenia to receive $152 million in budget support loans

YEREVAN, December 12. /ARKA/. Armenian Deputy Finance Minister Armen Hayrapetyan, speaking Thursday at an extraordinary session of the National Assembly, said Armenia will attract budget-supporting loans totaling $152 million (around €131.4 million). The money, he said, will be used to fill the budget deficit, which is projected at AMD 180 billion (around $375.6 million) in the government budget for 2020.

In his words, the financial means will be attracted from three sources - the World Bank, the Asian Development Bank and Germany's KfW Bank. Hayrapetyan, however, refrained from mentioning the interest rates on these loans, and, asked why the decision came so late, he said the procedures were long-lasting. "This is that very financial cushion which is necessary for full implementation of government budget programs," he said. "We can refrain from attracting such financial means, but this will create financial risks and liquidity problems in the next few months."

The deputy finance minister said that at the moment the government has AMD 9 billion in its reserve, but this amount is not sufficient to finance necessary spending. In his words, the government will need AMD 50 or 60 billion in the first ten days of January, especially given that no tax receipts come to the budget in the mentioned period of time.

If the government doesn't attract these means, he said, then tax return risks will emerge, while the government has obliged itself to return taxes.Under its agreement with the Asian Development Bank, Armenia will receive a € 36.5 million loan for ensuring a tax and budgetary stability and development of the financial market and the capital market. The second, € 40-million loan will be received from Germany's KfW Bank. Besides, the country will receive from the Asian Development Bank another, €9.1 million loan under another program and €9.1 million from the World Bank. ($1 – 478.02). -0--

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