Conditioned by the deterioration of the socio-economic situation and the slow pace of economic recovery because of the coronavirus pandemic and post-war development, on April 30, 2021 the RA Ministry of Finance officially requested the International Development Association for a one-year extension of the decision to cancel the application of an additional 1.7% interest rate.
In a letter dated June 29, 2021, the World Bank informed that the request of the Armenian side was satisfied, and that the additional interest rate would not be applied during the 2022 fiscal year of the World Bank (July 1, 2021 to June 30, 2022).
According to the estimates of the World Bank and the RA Ministry of Finance, as a result of the cancellation of the additional 1.7% interest rate for one year, the savings of the RA Sate Budget on foreign interest payments will make about USD 12 million.
As of June 30, 2020, the balance of the RA Government debt to the International Development Association amounted to USD 955 million, of which an additional interest rate is applied to USD 755 million.