Armenian government approves Russia defense loan agreement

Armenia's government approved the agreement on a $100mn defense loan from Russia, and forwarded it to the parliament for ratification.

Under this document, Russia will provide a state export loan to Armenia for supplying Russia-made military products.  

The loan will be provided at a three-percent annual interest rate for a 15-year period which begins in 2023 and ends in 2037, but the lent financial resources will be used already in 2018-2022. ARKA reported.

The agreement was signed on October 24, 2017.  Armenia should use the loan for financing up to 90% of each contract on supply of ammunition. In compliance with its contractual obligations, the Armenian side has to pay no less than 10% of the contact cost.