AfDB approves $100 million loan to strengthen fiscal management and improve financial markets in Armenia – Public Radio of Armenia
The Asian Development Bank (ADB) has approved a $100 million policy-based loan under a new program that will help strengthen fiscal management and improve financial markets in Armenia.
The fiscal sustainability and financial market development program will help the government strengthen its fiscal management policies and practices, improve money and government securities market infrastructure, and promote capital markets.
“Recent economic shocks such as the COVID-19 pandemic have interrupted Armenia’s growth momentum, but the country has shown remarkable commitment to reforms that have enabled it to maintain sustainable debt levels. and the credibility of macroeconomic management,” said the AfDB’s Managing Director for Central and Western Asia. Yevgeny Zhukov. “The AfDB is pleased to support the Armenian government in its efforts to further improve fiscal management and strengthen financial markets to achieve sustainable economic growth.”
The program supports reforms that will improve budget planning, management and transparency and increase the economic and social impact of public spending. It aims to promote the liquidity of the money markets and to support a public debt securities issuance program conducive to the development of the markets. It also supports actions that will broaden the base of financial instruments and investors, including the possible development of green finance instruments.
“The reform actions that Armenia has undertaken over the past few years, which include the integration of climate change mitigation and adaptation into strategic planning, are crucial to improving the efficiency of the public sector and reduce the risk of fiscal instability,” said João, AfDB’s Senior Financial Sector Economist. Pedro Farinha-Fernandes.
“The AfDB is coordinating closely with development partners to ensure that the measures supported adequately and sustainably address gaps and challenges,” said Grigor Gyurjyan, Senior Economics Officer at the AfDB.
The French Development Agency participated in the development of the program and will co-finance it with a commitment loan of 100 million euros.
The AfDB is one of Armenia’s largest multilateral development partners. Since 2005, the bank has provided financial assistance worth more than $1.6 billion, supporting government priorities including transport, energy, water and urban infrastructure. In the private sector, the AfDB finances public services and infrastructure, financial institutions and agribusiness.