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The World Bank has confirmed it would drop the additional interest rate of 1.7% for the loan provided to Armenia. As the Ministry of Finance reported, the action will be active for a period of one year and comes as assistance to protect the economy from the impact of the coronavirus outbreak.

It is noted that the as coronavirus (COVID-19) crisis has brought severe economic and social consequences to member countries, the international financial structures try to help member states on their pandemic response.

With this regard, the World bank has informed about a decision to cancel the additional interest rate of 1.7% for most of the loans to Armenia as part of International Development Association (IDA). According to the source, Armenia’s ministry of finance had applied with an official request on May 7 and that was approved at the WB Board meeting on June 4.

According to estimates by the World Bank and the Ministry of Finances the suspension of interest payment for a duration of a year will secure $13 million USD for the state budget to tackle challenges posed by the coronavirus outbreak.