YEREVAN — The Armenian government today approved a €250 million credit line agreement with the French Development Agency (AFD) to strengthen its public finances and reduce its reliance on external debt.

The budget support loan—officially designated as Agreement No. CAM1038 01—marks the first phase of a new three-year program co-financed by the AFD and the Asian Development Bank (ADB). The initiative builds on previous policy-based programs designed to modernize Armenia's public finance management and develop its domestic financial markets.

According to government officials, the funding will be utilized to foster sustainable public spending, boost domestic resource mobilization, and cultivate a more favorable business environment. The three-year reform program will target three primary operational pillars:

• Fiscal and Service Upgrades: Improving fiscal management and public service delivery at both the national and local government levels.
• Private Sector Growth: Creating a competitive environment for domestic resource mobilization, connectivity, and private enterprise.
• Market Sustainability: Strengthening national debt management frameworks and enhancing the overall efficiency of Armenia's financial markets.