Armenia Reduces Central Bank Interest Rate Impacting Deductible Loan Interest

On 12 December 2023, the Central Bank of Armenia reduced the refinancing interest rate (key rate) from 9.5% to 9.25%. This follows a reduction in the rate from 10.75% to 10.5% on 13 June 2023, 10.25% on 1 August 2023, 9.75% on 12 September 2023, and 9.5% on 31 October 2023. For taxpayers, the rate affects the amount of deductible interest on loans provided by entities other than banking and financial institutions, which is limited to the extent the interest rate exceeds twice the key rate of…