GOVERNMENT OF ARMENIA APPROVES 90BLN AMD WORTH CREDITING PROGRAM FOR STABILIZATION OF ECONOMY BY MEANS OF RUSSIAN CREDIT

ARKA
June 26, 2009

YEREVAN, June 26. /ARKA/. At its visiting session in the city of Kapan
on Friday, the Government of Armenia approved 90bln AMD worth crediting
program for stabilizing economy by means of the Russian credit.

"The program is aimed at spurring GDP growth through partial meeting
of the demand for credit means by business entities amid the economic
crisis," ARKA was told by the Governmental press-service on Friday.

Budget credits will become the form of financing under the program
by following components: crediting of financial and banking system
(in dollars equivalent to 60.5bln AMD), crediting of small and medium
entrepreneurship (6.4bln AMD), crediting of backbone legal entities
ensuring activities of large infrastructures (23.1bln AMD).

According to Premier of Armenia Tigran Sargsyan the 90bln AMD have
been provided for mitigation of consequences of the economic crisis.

"The public pays close attention to use of the Russian credit and
now we can inform that another 24bln AMD will be earmarked for the
disaster area and the same amount will be earmarked for the disaster
area next year. The rest of the sum will remain in the stabilization
fund," said the Premier.

On June 12 the Russian side transferred $500mln of stabilization
credit through a single tranche to the account of20the Central Bank
of Armenia.

Intergovernmental agreement on issuing Armenia $500mln state credit
came into force on June 11. Under the agreement Armenia received a
15-year $500mln credit with four years grace period and at LIBOR plus
3% rate. ($1 – 360.38AMD).