ARMENIA: BY SUMMER, $500 MILLION FROM RUSSIA WITH LOVE

Eurasianet

March 27, 2009

Russia will provide a $500 million credit to Armenia by the end of
May, the Regnum news agency reported March 27, citing the Armenian
Ministry of Finance.

The 15-year credit agreement includes a four-year grace period after
which Armenia would repay the loan at LIBOR (London Interbank Offered
Rate) plus 3 percent, the RIA-Novosti news agency reported. The
credit is meant to cushion the global financial crisis’ impact on
the Armenian economy.

Armenia’s annual economic growth rate in 2008 hit a seven-year low
of 6.8 percent, down from 7.8 in 2007, Armenia’s National Statistics
Department reported. The economy was particularly affected by problems
in the real estate sector, which was a "locomotive" for growth,
the Armenian finance ministry told Regnum.

Although in financial straits itself, Moscow plans to continue to
dole out loans to ex-Soviet allies such as Armenia, Belarus and
Kyrgyzstan. Russian Finance Minister Aleksey Kudrin said on March
25 that additional members of the Commonwealth of Independent States
have asked Moscow for help, Novosti reported.

From: Emil Lazarian | Ararat NewsPress