20.8BLN AMD OF RUSSIAN CREDIT TO BE DIRECTED TO EARTHQUAKE ZONE IN ARMENIA

ARKA
June 11, 2009

YEREVAN, July 11. /ARKA/. Some of the funds, 20.8bln AMD, of the
Russian stabilization credit, will be directed to the construction
and renovation work in the Spitak earthquake zone, said RA Minmister
of Finance Tigran Davtyan.

The press service of the RA Ministry of Finance reports that the
Russian stabilization credit, US $500mln, has been issued to Armenia
today.

"It will be the first tranche of the Russian credit," the Minister
said at the Government’s sitting.

He pointed out that the funds will be reflected in the budget.

RA Prime Minister Tigran Sargsyan said that the funds must first
of all be directed to the renovation work in the earthquake zone
and to the National Center for SMB Development, as well as to the
Government-approved programs.

Earlier Premier Sargsyan stated that some of the funds will be
allocated for anti-crisis measures from a special stabilization fund
to be formed at the Central Bank of Armenia (CBA).

Renovation work to the amount of 24bln AMD is to be carried out in the
disaster zone, and about 15bln AMD is to be provided to the National
Center for SMB Development to enhance the SMB crediting potential.

On May 20, RF and RA Ministers of Finance, Alexey Kudrin and Tigran
Davtyan, signed an agreement on a 15-year US $500mln stabilization
credit to Armenia for sup porting its economic during the crisis.

The soft credit has been issued at an annual interest rate of 4%,
the grace period being 4%.