RUSSIA, ARMENIA SIGN $500 MILLION LOAN AGREEMENT ON 3% LIBOR PLUS RATE

ARKA
May 20, 2009

YEREVAN, May 20. /ARKA/. Russia’s Minister of Finance Alexei Kudrin
and hi Armenian counterpart Tigran Jrbashyan signed today a 15-year
$500mln worth loan agreement on 3% LIBOR plus rate. The loan agreement
is an attempt to support Armenia amid the global financial recession,
RIA Novosti reports.

According to Kudrin, this is a lax credit with 4% annual interest rate.

"We grant a five-year grace period for Armenia to pay its main debt.

During this period, the country is to pay only interest rates,"
Kudrin was quoted saying.

According to RA Finance Minister Tigran Jrbashyan, the Russian loan
is a strong support for Armenia’s economy amid the global crisis. He
expressed a hope that Armenia would fulfill its commitments to Russia.

The loan funds will be allocated for infrastructural development
and small-to-medium-scale businesses. Kudrin said other countries
have requested loans from Russia, adding negotiations with Ukraine
are under way. He did not name any other countries, saying no final
decision had been made yet.