FINANCE MINISTER OF ARMENIA: ARMENIA WILL USE RUSSIAN STABILIZATION LOAN FOR $500 MILLION WITHIN COMING YEARS
ArmInfo
2009-06-04 13:12:00
ArmInfo. Armenia will use the Russian stabilization loan for $500
million within the coming years, Finance Minister of Armenia Tigran
Davtyan told ArmInfo. ‘Armenia hardly can use these funds within
2009. Part of the amount is likely to be used in 2010 and within the
coming years. These are budgetary funds and will be used purposefully’,
Tigran Davtyan said. He said Armenia has informed Russia that the
loan was ratified and is expected within 1-3 days.
The minister said the government will spend the loan on restoration
of the disaster zone, on development on SMEs. Part of the amount will
be spent to support strategic companies, another part to create a
stabilization fund for macroeconomics and budget deficit for 2010. Part
of the amount may be used to form a mortgage fund at the Central Bank,
he said.
The minister highlighted some trends of stabilization in the economy
of Armenia. ‘We are little behind global processes. One should expect
improvement in the economy of Armenia as soon as it is stabilized in
the USA and Russia’, the minister said.
Earlier on 2 June the Parliament ratified the intergovernmental
agreement with Russia for provision of the $500 million stabilization
loan to Armenia.
The loan will be provided at the LIBOR+3%, which is equal to 4%
annual interest. The maturity of the loan is 15 years with a 4-year
grace period.