Armenia`s Cabinet approves allocation of $1mln to Asian Development  Fund 

ArmInfo. On June 12, the Government of Armenia approved the allocation of $1 million within the framework of the 13th replenishment of the Asian Development Fund and the  eighth replenishment of the Special Fund for Technical Assistance.

As stated in the explanatory note to the document, the Asian  Development Fund (ADF) was established in 1974 as a concessional lending mechanism of the Asian Development Bank (ADB) to provide loans at very low interest rates to the Bank's poorest member countries. It aims to reduce poverty and improve the quality of life in the poorest countries of the Asia-Pacific region.

As ADB's largest Special Fund and the Bank's main source of grants, ADF continues to play a key role in building and maintaining economic stability in ADB's most vulnerable member countries. ADF's resources are primarily drawn from contributions mobilized by ADB's member countries through regular replenishments and net income transfers from ADB's ordinary capital resources.

Since its inception, the Fund has been replenished 12 times, with 36 participating partners. In addition to other sources of financing, including loan repayments and net income transfers from ADB, the Fund has provided more than $85 billion in concessional loans and grants to 36 developing member countries over its lifetime.

Under the 12th replenishment (ADB Round 13, 2021-24), five countries receiving support from the Fund became donor countries to the Fund, including Azerbaijan. Armenia is also participating as a donor among donor countries for the new 13th replenishment (ADB Round 14, 2025-28).

For the 13th replenishment of the Fund, donors have committed a total investment of $4,995,310,176 (2025-28), of which $2,564,310,176 is conditional on investments from new donors (an increase of 9 percent compared with IDA13). The remaining $2,431,000,000 will be financed by: - $1,574,000,000 from net income on ADB's core capital resources, based on annual decisions of ADB's Board of Governors (an increase of  35 percent compared with ADB13); - $506,000,000 from sources received in previous ADB cycles; - $351,000,000 from income from investments in liquid assets. 

It is noted that sufficient funds received as a result of the eighth  regular replenishment of the Special Technical Assistance Fund will play a key role in the implementation and monitoring of  transformative and high-quality projects, sustainable development and addressing global challenges, contributing to the climate agenda, gender equality, public debt sustainability, private sector development, etc.

The share of the Republic of Armenia in the 14th round of ADF is 0.03% of the total, or $ 1,000,000.  

If desired, the Republic of Armenia can participate in the  replenishment of ADF resources by issuing simple interest-free demand notes>, - the document says.