Armenia to receive 80 million euro loan from OPEC fund to replenish budget

The government of Armenia will take an 80 million euro loan from the OPEC Fund for International Development to cover the budget deficit.

The resolution on this was approved at a cabinet meeting on Thursday.

The corresponding agreement was reached between the government and the fund on April 29.

According to the practice adopted when receiving budget loans, the government has drawn up a program to improve the efficiency of public administration (with the aim of increasing tax collection indicators and financial sustainability).

Earlier, this program was drawn up in addition to another budget loan from the World Bank (in the amount of 170.3 million euros), and it was also taken as the basis when agreeing on the loan with the OPEC fund. For comparison, the total budget deficit of Armenia for 2026 is planned at 536.8 billion drams or 1 billion 263 million euros (some of it will be covered by loans, the main part by issuing government bonds).

One of the points of this program is the previously adopted draft amendments to the law "On Economic Competition and Consumer Protection," under which stricter penalties for businesses for unfair competition have been approved. Another point is the adoption of the law "On Cybersecurity," under which standards for storing data of critical importance in the state apparatus and at private enterprises are increased. Finally, a package of bills on the transition to a green economy and reducing emissions into the atmosphere has been adopted.

The loan from the OPEC fund will be provided at a 6-month floating Euribor rate (the European interbank lending rate, currently 2.606%) plus a fixed rate of 1.56% (total, currently, 4.166% per annum). The loan term is 18 years, with a grace period on the principal amount of 5 years.

Source: Sputnik Armenia