Armenia will receive $315 million in loans from the International Monetary Fund (IMF), which will be used to finance budget programs.

The government on Thursday, June 4 approved the Stand-By Arrangement signed between the country and the IMF on May 23 and June 1.

Finance Minister Atom Janjughasyan said that the world economy is expected to shrink by 3.5% in 2020 due to the coronavirus pandemic, which can’t but affect Armenia’s budget.

“It is expected that the decline will lead to a reduction in tax revenues, which in turn will lead to an increase in the deficit if the same level of spending is maintained,” Janjughazyan told a government meeting.

“Debt financing requires the inclusion of borrowed funds, which will automatically lead to an increase in debt.

H/T PanArmenian