RUSSIA GRANTS $500 MILLION LOAN TO ARMENIA

Panorama.am
16:46 20/05/2009

Moscow grants Yerevan $500 million loan to contribute to the
improvement of the Armenian economy amid the ongoing economic crisis,
Russian media reports. The 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.

Russian minister 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.

Armenian minister of economy emphasized that the loan would be of
great significance for the Armenian economy during the crisis.