RUSSIA TO EXTEND $500 MLN LOAN TO ARMENIA FOR 15 YEARS

RIA Novosti
13:4620/05/2009

MOSCOW, May 20 (RIA Novosti) – Moscow is to grant Yerevan a $500
million loan to prop up the Armenian economy amid the ongoing economic
crisis.

Wednesday’s agreement to extend the 15-year loan at LIBOR plus 3%
was signed by Russian Finance Minister Alexei Kudrin and his Armenian
counterpart Tigran Davtyan in Moscow.

Speaking at the signing ceremony, Kudrin said that the loan was
granted on concessional terms, with interest at about 4% per annum,
a reflection of the current market situation.

"We’ll grant a five-year grace period, during which only interest
will be paid," Kudrin said.