On November 9, the regular sitting of the RA Government took place. The RA Minister of Finance Vardan Aramyan presented to the approval of the Executive the legislative initiative regarding the RA Draft Law “On Making Additions and Amendments to the RA Law “On Profit Tax”. The objective of the bill regulation is the improvement of the current system of the performance of core resources amortization deductions. As a result of draft adoption, it is expected to define that taxpayers might perform amortization deductions of core resources by linear method in 2017 as well.
The Executive also approved the Draft “On a Loan Agreement of EUR 80 million Based on Multisectoral Policy between the Republic of Armenia represented by the RA Ministry of Finance and Reconstruction Credit Institute (KfW)”. EUR 80 million will be provided in two tranches – each of EUR 40 million for 2017 and 2018. According to the agreement, the interest rate is fixed (it is fixed for each tranche); the liability charge is 0.25% to the unused amount of the loan, the maturity of the principal amount is 15 years, the grace period is 5 years. The funds will be directed to the improvement of the reform process of water and solid waste sector in Armenia and the implementation of the agricultural insurance mechanism in the agricultural sector.