RA Government to borrow $150 million from the Asian Development Bank to finance budget deficit
The Government of the Republic of Armenia (RA) has approved the decision to attract a $150 million loan from the Asian Development Bank (ADB). The corresponding decision was adopted during the RA Government session held on January 22.
To this end, the government approved the signing of the “Fiscal Sustainability and Financial Markets Development Program – Subprogram 3” loan agreement between the Republic of Armenia and the Asian Development Bank.
The loan will be secured within the framework of the 2025 annual borrowing program, developed in accordance with the objectives of the RA Government’s 2025–2027 Strategic Debt Management Plan.
According to the program, the total requirement for credit funds intended for state budget support is estimated at $675 million, which is planned to be attracted from international financial institutions, including the Asian Development Bank.
The loan will be provided for a term of 15 years, with a grace period of 3 years.
Earlier, Hovhannisyan noted that in the first half of 2025, Armenia’s state debt amounted to 5 trillion 323 billion AMD in dram terms, and $13 billion 852 million in dollar terms. Moreover, domestic debt continues to be higher than external debt, reaching 52 percent. Debt denominated in AMD accounts for 51 percent, compared to 49 percent for foreign currency debt.