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It is planned to take a loan worth 92.300.000 EUR. The budget support funds will be directed to the financing of the deficit established by the RA Law on the State Budget of the Republic of Armenia for 2023, therefore timely receipt of credit funds is of great importance from the viewpoint of financing the expenditures provided by the state budget. This was stated by the Deputy Minister of Finance Eduard Hakobyan, presenting the draft law on ratifying the Green, Resilient and Inclusive Development Policy Loan Agreement between the Republic of Armenia and the International Bank for Reconstruction and Development (IBRD).

The issue was debated at the extraordinary sitting of the NA Standing Committee on Financial-Credit and Budgetary Affairs on June 21.

According to the rapporteur, the implementation of measures and reforms in a number of areas defined by bilateral mutually agreed policy actions is a prerequisite for receiving budget support funds.

“Proper justifications are necessary to ratify the Loan Agreement, which are not included in the draft,” Gevorg Papoyan mentioned and insisted that Eduard Hakobyan present the directions providing the expenditure part of the loan.

“The loan funds will be directed to the implementation of the laws adopted in the National Assembly and the decisions of the Government,” the Deputy Minister stated and assured that there was an opportunity to use the expert base of the World Bank for implementing the drafts.

The deputy of the NA Armenia Faction Artur Khachatryan inquired on the basis of which calculations the Loan Agreement worth 92.3 million EUR is concluded, in response to which the Deputy Minister stated that the size of the loan was determined based on large calculations.

“There is no need to take such loans to cover current expenses, we need to set a logic around the scope of expenses, but thanks to such loans, we are able to easily and quickly implement capital expenditures. Certain problems arise when implementing the expenditures according to the programme method, the time is longer,” the Chair of the Committee Gevorg Papoyan noted. He assured that capital expenditures will be covered with the draft. “If the Agreement is not ratified, certain capital expenditures will be underperformed,” Gevorg Papoyan said.

The Committee endorsed the draft law.

At the proposal of the author Gevorg Papoyan, the debate of the draft law on Making Amendments to the Civil Code of the Republic of Armenia was postponed for up to two months.