The Armenian government approved Thursday, November 5, signing of an agreement for a $300 million loan from the Eurasian Development Bank.

The loan seeks to finance the three-year program of reforms aimed at ensuring economic stability in Armenia.

Granted for 20 years at an annual interest rate of 2.1%, the loan will be provided in three tranches of $100 million each.

“The deal will not affect Armenia’s external debt burden for 10 years,” Economy Minister Karen Chshmarityan said, adding that the loan envisages a 10-year grace period.

Asked by journalists to comment of the growth of external debt - GDP ratio and lack of growth in the industry sector, Chshmarityan said: “This is the problem of the economy on the whole, not just that of the industry. Compared with the industry growth of other countries, Armenia’s indicators are among the best ones. Even the most developed countries experience external debt burdens.”