YEREVAN, June 27. /ARKA/. The Armenian parliament approved on Monday an agreement with the International Bank for Reconstruction and Development (IBRD).whereby the latter will provide Armenia a EUR 92.3mln loan.
Armenian Deputy Finance Minister Edward Hakobyan said that the funds will be directed to cover the budget deficit and to finance capital projects including the construction of roads, schools and kindergartens.
The agreement signed between Armenia and the International Bank for Reconstruction and Development (IBRD) was approved by the government in April. IBRD will provide €92.3 million loan for the Armenia Green, Resilient and Inclusive Development Policy Operation project.
The loan was approved earlier by the World Bank's Board on March 24. The operation supports the 2021- 26 Program of the Government of the Republic of Armenia and is aimed at promoting green, resilient, and inclusive development by: improving the regulatory framework for environmental management to help Armenia mitigate and adapt to the pressures of climate change.
It will also be used to enhance equity and promoter human capital development; and support the anti-corruption framework and justice sector efficiency.
This EUR 92.3 million (US$100 million equivalent) loan is an IBRD flexible loan with variable spread, with a 5-year grace period and a total repayment term of 19 years. This is the first operation in a programmatic series and is supported by parallel financing of EUR 50 million ($53.7 million) provided by the OPEC Fund for International Development, a multilateral development finance institution headquartered in Vienna, Austria.
The interest rate on the loan will be 3.64% with a spread of 0.64%. -0-