Yerevan /Mediamax/. The Russian Federation will provide Armenia with USD 100m state loan for financing purchase of modern weaponry and equipment.
The Armenian government approved the relevant draft agreement during the session today.
The Armenian side is obliged to repay the actually used amount of money within 15 years, with 3% annual interest rate. In addition, the Armenian side is expected to make advance payments to co-finance 10% of contract values within the frames of the agreement.
The loan will be used in 2018-2020.
Another loan agreement, signed between Armenia and Russia in 2016, is still in force today.
According to the agreement, Armenia was provided with USD 200m for the purchase of weaponry and military equipment.