THE BIGGEST GERMAN CREDIT PROGRAM FOR ARMENIA
By Ara Martirosian, translated by L.H
AZG Armenian Daily #167
14/09/2007
79,5 mln Euros financial assistance to our country
In the framework of bilateral technical and financial cooperation
the Government of the Federal Republic of Germany will provide 79,5
mln Euros for Armenia in 2007-2008, according to the contract signed
on September 12 in Yerevan between Dr. Rolf Baldus, Head of Central
Asia and South Caucasus Division at Federal Ministry of Economic
Cooperation and Development of Germany, and RA Minster Finance and
Economy Vardan Khachatrian.
"74 mln Euros of 79,5 mln Euros is provided for financial, and 5,5
mln Euros for technical cooperation programs", announced RA Minister
of Finance and Economy Vardan Khachatrian at a press conference after
the signature of the contract.
4 mln Euros of 74 mln Euros are provided as a grant, and 6 mln
Euros – as preference credit directed to the development of the
apartment building market of Armenia. 29 mln Euros are provided for
the reconstruction of the hydro-electric power "Vorotan": one part
of it (14,9 mln Euros) is a preference credit and the second part –
trade credit (5,95 percent of interest, with 15 years time limit and
4 years of preference period). The mixed interest of the credit is
2 percent, according to the Minister.
14 mln 600 thousand Euros are provided for the reconstruction of the
second high-voltage substation of Gyumri, and 20 mln 400 thousand Euros
– for the construction of Armenia-Georgia high-voltage power line.
To the question if it is appropriate to build that line, when Georgia
stopped to receive electricity from Armenia, Vardan Khachatrian
answered that the line would not be built only for the trade of
electricity, but for the solution of electricity issues in general.
Rudolf Baldus added that Georgia, in its turn, expressed a wish to
build its part of the line. He also announced that the high-voltage
power line would be built in the framework of the program "South
Caucasus: entrepreneurship".