Ministry of Finance, AFD and ADB sign a Credit Facility Agreement for improved efficiency and sustainability of public and financial services in Armenia

Two credit facility agreements (for AFD and for ADB) were signed by and between Tigran Khachatryan, Minister of Finance, Cyrille Bellier, Director for Eastern Europe, Middle East and Asia at AFD, and Huiping Huang, Deputy Director of the ADB Armenia Resident Mission.

The agreements were signed in support of a program of government reforms to improve fiscal management, financial markets development and capital markets. These are considered crucial to support sustainable and inclusive growth and a better quality of life for the population of Armenia.

The main objective of the project is to strengthen the efficiency of public financial management and to develop money and securities markets infrastructures while encompassing climate change mitigation and adaptation challenges through the development of a strategic framework for transition to a green economy and other related reforms.

This budgetary financing is part of a multi-year program co-financed by ADB and AFD, which will be complemented by technical assistance from both institutions to manage the project implementation process and provide support to the targeted reforms of the agreed curriculum within the Ministries of Finance, Economy, Environment and the Central Bank of Armenia.

The project will address three major pillars for the reform:

• Improving fiscal, public debt and fiscal risk management policies and practices as well as public services delivery and infrastructures investment;
• Strengthening government securities market and money market infrastructure;
• Broadening the base of financial instruments and investors, and enhancing corporate transparency.

“On behalf of the Government of Armenia let me express our gratitude to the Government of France, the French Development Agency and the Asian Development Bank for the continuous joint efforts towards implementing “Fiscal Sustainability and Financial Markets Development Program” policy based budget support during this year, and today we all are evidencing the result of this enormous work by signing the Credit Facility Agreement with AFD and the Loan Agreement with ADB. Referring to the concept of the Program, I am delighted to stress that the agreed reforms are fully in line with the Government agenda, which is perhaps, not less  important than just engaging financial resources. And now we are more than confident on the attainment of the results of the implemented reforms. Thank you again to the teams for productive cooperation!” said Tigran Khachatryan, Minister of Finance.

“French Embassy rejoices at the signing of an agreement between the Ministry of Finance of Armenia, the French Development Agency (AFD) and the Asian Development Bank (ADB), relating to a loan of EUR100 million from AFD and USD100 million from the ADB. France thus confirms its determination to support the ongoing reforms in Armenia and the priority public policies, in accordance with the commitments made within the framework of the economic roadmap signed on December 9, 2021”, said Anne Louyot, Ambassador of the Republic of France to Armenia.

“AFD is delighted to be supporting the Program of the Government of Armenia, whose ambition is to come with a comprehensive and integrated approach of Public Finance Management and money/securities markets infrastructures while encompassing climate change mitigation and adaptation objectives. The successful completion of the first phase of the program demonstrates the quality of the dialogue established between AFD, ADB and the Government of Armenia, opening the door for a long-term fruitful cooperation.” said Cyrille Bellier, Director for Eastern Europe, Middle East and Asia of AFD.

Contact:

• Ekaterine Bilanishvili, AFD Tbilisi