2024-08-24 02:02:33
Due to the deterioration of the socio-economic situation and the slow pace of economic recovery as a result of the coronavirus pandemic and post-war developments, the Ministry of Finance of the Republic of Armenia in 2021 on April 30, it officially applied to the International Development Association, asking to extend for another year the decision to cancel the application of the additional 1.7% interest rate.
In a letter dated June 29, 2021, the World Bank informed that the request of the Armenian side was satisfied, and the said additional interest rate will not be applied during the World Bank’s 2022 financial year (from July 1, 2021 to June 30, 2022).
According to the estimates of the World Bank and the Ministry of Finance of the Republic of Armenia, as a result of the cancellation of the additional 1.7% interest rate for one year, the saving of the state budget of the Republic of Armenia in terms of foreign interest payments will amount to about 12 million USD.
2020 as of June 30, the balance of the debt of the RA government in terms of loans of the International Development Association amounted to 955 million US dollars, of which additional interest is applied to 755 million US dollars.