On 16 June 2021, the Central Bank of Armenia increased the key refinancing interest rate from 6.0% to 6.5%. This follows several changes over the past year, including a reduction in the rate from 5.0% to 4.5% on 16 June 2020, a reduction to 4.25% on 15 September 2020, an increase to 5.25% on 15 December 2020, an increase to 5.50% on 2 February 2021, and an increase to 6.0% on 4 May 2021.
For taxpayers, the rate affects the amount of deductible interest on loans provided by entities other th…