ARMENIAN PM: ARMENIA INTENDS TO DIRECT ABOUT $30 MILLION OF RUSSIAN CREDIT TO DEVELOPMENT OF SMALL AND MEDIUM ENTREPRENEURSHIP
ArmInfo
2009-05-21 13:16:00
ArmInfo. Armenia intends to direct about $30 mln of the Russian
credit of $500 mln, signed on May 20, to development of small and
medium entrepreneurship, Prime Minister of Armenia Tigran Sarkisyan
said at the government session Thursday.
According to him, these funds ($30 mln) will be granted to the
government-created Small and Medium Entrepreneurship Development
National Center National Center (SME DNC) which, in its turn, creates
a credit organization for SME crediting Moreover, part of the Russian
credit funds will be given to the mortgage company to be created by
Armenia’s Central Bank. (Ed. – CB brings in 5 bln drams from the
state budget as an initial contribution in the authorized capital
of the mortgage company). These events will allow to mitigate the
consequences of the global economic crisis, the premier said.
To recall, Russia signed an agreement with Armenia on May 20 on
extension of credit to the sum of $500 mln. On the part of Russia,
the document was signed by vice Prime Minister, Finance Minister of
Russia Aleksey Kudrin and on the part of Armenia – by Finance Minister
of Armenia Tigran Davtyan.
The credit is extended at LIBOR+3% rate, that currently meets about
4% per annum. The credit is extended for 15-year period. Moreover,
a 5-year period of grace has been envisaged for payment of the
principal debt.