The government of Armenia approved a draft agreement to receive a Russian loan against weapons worth 100 million dollars, the Novosti-Armenia news agency reported.

Russian-made BTR-80 at Armenian Military Parade Dedicated to the 20th Anniversary of Independence of the Republic of Armenia (Picture source Armenian MoD)

"The draft agreement on obtaining by Armenia of a Russian defense loan worth 100 mln dollars has been submitted for ratification to the National Assembly of Armenia," it said.

The export credit agreement was signed on October 24, 2017. The funds will be used to buy Russian-made military products. The loan to Armenia has a 15-year maturity and 3 percent annual interest. Yerevan has to use the money in 2018-2022.

"The government said Armenia has to use the loan to finance 90 percent of each contract amount. Armenia will have to pay at least 10 percent of the contract amount upfront," the agency said.

In June 2015, Russia signed with Armenia an agreement on a state export credit worth 200 mln dollars to finance deliveries of Russian weapons. The maturity was 13 years with a three-year grace period and 3 percent annual interest.

Armenian armed forces mainly use military equipment from Russia including T-72 main battle tanks, BMP-1/BMP-2 tracked IFV and BTR-60/BTR-70/BTR-80 8x8 armoured vehicle personnel carrier.

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