Russia will provide Armenia with a new export loan of $ 100 million  for the purchase of modern weapons

ArmInfo.The Russian Federation will provide the Republic of Armenia with a new export credit of $ 100 million for the purchase of modern weapons. The draft  intergovernmental agreement was approved at a government meeting on  October 12. In accordance with the agreement, the loan will be issued  for a period of 20 years, of which the first five years at a reduced interest rate of 3% per annum. 

At the same time, the share of Armenia's co-financing will be 10% of  the total cost of the program. Based on the loan agreement, separate  agreements will be concluded between the Armenian Ministry of Defense  and Rosoboronexport OJSC on the order and timing of deliveries of  arms and military equipment.  Repayment of the principal amount of  the loan is scheduled to begin on May 15, 2023 and be completed on  May 15, 2037. In the first six years, Armenia will annually repay a  loan of $ 1.5 million, after which the amount of deductions will  increase to $ 3.6- $ 3.8 million.

Recall that Moscow has already provided Armenia with a loan of $ 200  million for a period of 10 years.  Yerevan uses these means to  purchase launchers of the Smerch multiple rocket launcher and its  ammunition, the Igla-S missile system and its missiles, the Avtobaz-M  ground reconnaissance systems, the TOS-1A heavy flamethrower systems  Solntsepek "with transport-loading machines TZM-T, guided missiles  9M113M, RPG-26 grenade launchers, B-429E fuses, Dragunov sniper  rifles (SVD), armored vehicles, Tiger armored vehicles, engineering  equipment and communications equipment. In addition, Russia supplied  Armenia with the Iskander missile system. According to the interim  expenditure program for 2018-2020. Armenia plans to increase military  spending by $ 60 million annually. The aim of Yerevan is to increase  the level of military spending by 4% of GDP. At present, Armenia's  military expenditures are around 3.6% of GDP - about $ 450  million.