Interfax, Russia
Jan 23 2009

Armenia hopes to get $1 billion in stabilization loan – source

ARMENIA Jan 23

Armenia is hoping to get $1 billion in loans from Russia, the World
Bank, the Asian Development Bank, Enhanced Coverage LinkingAsian
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Profile and the European Bank for Reconstruction and Development to
deal with the negative consequences if the world economic crisis, a
source in the Armenian government told Interfax.

The negotiations between the Armenian and Russian authorities on the
provision of the loan have been going on since late December 2008,
said the source. The Armenian administration has been forced to seek a
stabilization loan due to the sharp deterioration of the state of its
economy in late 2008.

In addition, Armenia is conducting talks with China on the provision
of a stabilization loan to the amount of $2 billion, said the source.

The Armenian administration expects the funds received from Russia,
China and international financial organizations to last it to conduct
stabilization measures in the next 1-1.5 years, said the source.

On Thursday, Russian Finance Minister Alexei Kudrin said Armenia had
asked Russia for a stabilization loan to deal with the consequences of
the global financial crisis. "Negotiations are now being conducted on
the matter," he said.

The world crisis began impacting the Armenian economy in fall 2008.

The hardest hit was the real economy (the chemical industry and the
mining sector).