RA PRIME MINISTER TIGRAN SARGSYAN TRAVELED TO THE GOVERNMENT HOUSE OF RECEPTIONS TO ATTEND A LARGE CREDIT AGREEMENT SIGNING CEREMONY

Wed nesday, 17 June 2009

A number of electrical grid modernization and refurbishment-related
instruments have been signed by INTER RAO EES, Armenian Electric
Networks CJSC, EBRD and Foreign Trade and Development Bank SC
representatives.

Due to Armenian Electric Networks CJSC, the new credit resource which
makes euro 64.5 million, will be used to refurbish the company and
modernize infrastructures, increase efficiency in the use of electric
energy, reduce losses, promote integration with CIS States power supply
systems. It is noteworthy that this largest-ever deal is carried out
without a State guarantee.

Highly appreciative of the loan agreement, Prime Minister Tigran
Sargsyan said: "I wish to compliment all those present on the signing
of the agreement. This credit agreement is of twofold relevance to
us. Firstly, because it is one of the biggest deals in Armenian
banking system’s history with a total budget of about euro 64m:
over a period of two years, the proceeds of the loan will be spent
on electric grid rehabilitation purposes throughout the country. And
secondly, the money is being invested at a complicated for Armenia’s
economy moment, amidst the global crisis, and is supposed to have a
positive impact on both the economy20and the social sector. Therefore,
we welcome this crucial undertaking. I am hopeful that all those tasks
set before the home power distribution networks will be met as early
as possible. Another important factor to note is that the credit will
have no impact on prices, and interest will be paid from profit,"
the head of government said.