ARMENIA EXPECTING A $50 MILLION CREDIT FROM WORLD BANK IN EARLY APRIL 2009

ArmInfo
2009-03-19 12:51:00

ArmInfo. Armenia expects a $50 million credit from World Bank in
early April 2009, Prime Minister of Armenia Tigran Sargsyan said at
the government Thursday.

He said the credit agreement with the WB has already undergone all
the officially procedures and was approved by the Armenian Parliament
Wednesday.

‘We think Armenia will receive $50 million from the World Bank within
two weeks’, the premier said. It is an anti-crisis program. The
funds will be provided to the Central Bank and then placed with
local commercial banks for onlending to SMEs. T. Sargsyan said the
government will exert efforts to find additional funds for onlending
SMEs. ‘I think that demand for borrowed funds will be higher than
the proposed $50 million. We have already agreed with international
organizations for increase of crediting’, the premier said. He said
that in current conditions operative implementation of the program
is very important. ‘We should follow that these funds placed with
commercial banks within a short period of time’, the premier said.

To recall, Central Bank of Armenia and the International Bank for
Reconstruction and Development [IBRD], part of the WB, signed a credit
agreement for $50 million on February 26. The greatest part of the
funds will be onlent to small and medium-sized enterprises. However,
the agreement implies also crediting in terms of US dollars. The
program will involve the enterprises whose annual turnover does not
exceed 500 million drams ($1.3 million). The credit is provided for
26,5 years, 5- year grace period and 4% annual interest.