OPEC TO GIVE 14 MILLION DOLLAR CREDIT TO ARMENIA FOR IMPLEMENTATION OF RURAL AREAS DEVELOPMENT PROGRAMS
Noyan Tapan
March 19, 2009
YEREVAN, MARCH 19, NOYAN TAPAN. The RA National Assembly on March 19
ratified the loan agreement for "The Market Opportunity to Farmers"
Program signed between the Republic of Armenia and the OPEC Fund for
International Development (OFID) in Vienna on December 23, 2008. By the
agreement, a 14 million dollar credit will be given to Armenia. The
credit is provided for 20 years, with a grace period of 5 years and
has an annual 3.2% interest rate and a 1% payment for credit servicing.
According to the main speaker, RA deputy minister of agriculture
Samvel Avetisian, under the agreement, Armenia is obliged to
provide additional co-financing of about 3 million dollars for the
implementation of programs on development of social infrastructures in
rural areas. 0.5 million USD of the credit will be spent on maintenance
of the Program Implementation Office, while the major part of the sum
will be provided for programs on construction of gas supply networks
in communities. With this aim 38 communities im most vulnerable and
border areas have been selected, and designs are now being worked
out for these communities.
The deputy minister also spoke about the measures taken within the
framework of the program on development of rural areas prior to the
attraction of new credit resources. In his words, a total of 30 million
USD was spent as of the beginning of 2009, including 5 million and
10 million USD received under two credit agreements signed with the
OPEC in 2005 and 2007 respectively, and a sum of 15 million drams
provided by the IFAD. Out of the 30 million USD, 8.5 million USD
was allocated to a rural financing structure, which re-financed the
banks selected and provided 199 long-term and short-terms credits at
10-13% interest rates through these banks. Besides, by the production
infrastructure development component, 3 major projects on water supply
and construction of intercommunity roads