Taking into account the forecasts regarding the deterioration of the economic situation in 2020 in all countries of the world due to the coronavirus pandemic, international financial institutions are trying to support member states as much as possible in overcoming the consequences of the pandemic.
As a result of the joint work of the Republic of Armenia and the World Bank on this topic, the previously adopted decision regarding the application of the additional interest rate (at an annual rate of 1.7%) on a number of loans provided to Armenia by the International Development Association has been declared void for a period of one year and will not be applied during the fiscal year (from July 1, 2020 to June 30, 2021).
According to the estimates of the World Bank and the Ministry of Finance of the Republic of Armenia, with the cancellation of the additional 1.7% interest rate for one year, the savings of the state budget of the Republic of Armenia on external interest payments will amount to approximately 13 million US dollars.
