GERMAN GOVERNMENT ENVISAGES TO ALLOCATE 8 MLN EURO CREDIT TO ARMENIA

YEREVAN, MAY 29, NOYAN TAPAN. The RA National Assembly on May 23
discussed the agreement between the Armenian and German governments on
financial cooperation in 2005-2006, which was signed in Yerevan on
March 3, 2006. The purpose of the agreement is to promote the social
and economic development of Armenia. The German government provides
the Armenian side with the opportunity to receive a 8 mln euro credit
from KfW Bank. 6 mln euros of this credit will be used to develop
Armenia’s mortgage market. The Central Bank of Armenia (CBA) will
receive the credit at a 0.75% interest rate and extend it to
commercial banks at 6-7% interest rates. The commercial banks will
provide credit resources to the population at 12-13% interest rates.