Armenia to Receive €50M OPEC Loan For Green and Inclusive Development

Armenia is set to secure a significant loan amounting to €50 million from the Organization of the Petroleum Exporting Countries (OPEC), as deliberations over the nation's draft law on ratifying the Green, Resilient, and Inclusive Development Policy Program loan agreement take center stage in a special session of the National Assembly.

The primary objective of this substantial loan program, established in collaboration with the OPEC Fund for International Development, is to facilitate green, resilient, and inclusive development within Armenia. The program aims to address the adverse impacts of climate change while enhancing the country's environmental management system and bolstering energy efficiency measures.

Eduard Hakobyan, Deputy Finance Minister of Armenia, highlighted the original intent behind the loan allocation. Initially designated to mitigate the state budget deficit, the surplus budget redirected the funds towards critical capital investments. These investments encompass diverse projects, including the construction of schools and similar infrastructure initiatives.

"The loan spans a 20-year period, with five of those years deemed as privileged," Hakobyan elucidated, emphasizing the favorable terms secured for this substantial financial assistance.

Additionally, according to estimates provided by the Ministry of Finance of Armenia, the actual interest rate attached to this loan stands at 5.6 percent, indicating the terms and financial commitments associated with the borrowing.