At today's session, the Armenian government approved a loan agreement of 80 million euro based on a multilateral loan agreement between the Ministry of Finance and the Renewable Credit Bank (KfW).

RA Minister of Finance Vardan Aramyan mentioned that this is a budgetary support loan and is in line with the budget deficit financing budget support stipulated in the 2017 budget law, which makes 220 million. Loan amount is provided in two tranches: 2017 and 2018 for the sum of 40 million euros.

"Within the framework of the loan agreement, Armenia is provided with a budgetary support loan for 2017 and 2018, based on a multi-sectorial policy table, which is aimed at improving Armenia's water and solid waste reforms and implementing the agricultural insurance mechanism in the agricultural sector, "said Vardan Aramyan.

Under the agreement, the interest rate is fixed (it is fixed for each tranche), the liability is 0.25%, the unused loan amount (calculated for Tranche 1 within 4 months after the signing of the agreement, for the Tranche 2 within 16 months after the signing of the agreement, lump-sum fee is 1% of the loan amount, the maturity date of the principal amount is 15 years, the preferential period is 5 years, and the technical assistance grants under the program total 8,339,139.38 euros.

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