EBRD TO ISSUE US $5.5MLN CREDIT TO ELITE GROUP (ARMENIA)
/ARKA/
July 1, 2009
YEREVAN
YEREVAN, July 1. /ARKA/. The European Bank for Reconstruction and
Development (EBRD) will issue a US $5.5mln credit and a â~B¬130,000
grant to the Elite Group CJSC, an Armenian construction company. A
relevant agreement has been signed by Head of the EBRD office in
Yerevan Valery Razlog and Director of the Elite Group CJSC Armen
Mkoyan.
Chairman of the Union of Manufacturers (Employers) and Businessmen of
Armenia (UM(E)BA) Arsen Kazaryan pointed out a high importance of the
agreement for Armenia in the context of the global crisis and decline
in the world construction industry. He pointed out an unparalleled
amount of credit for the region.
"I hope that the EBRD will continue its ambitious programs in Armenia
and we will get out of the crisis even stronger," Kazaryan said.
Paul-Henri Forestier, EBRD Director for Caucasus, Moldova & Belarus,
said that the agreement is the EBRD’s second large-scale transaction
in Armenia over the last month.
On June 17, the EBRD and Russia’s Vnesheconombank signed an
intercreditor agreement.
Under the agreement the EBRD is providing a loan of up to â~B¬42
million to the electricity distribution company Electric Networks of
Armenia to promote energy efficiency throughout the country.
The project will also be co-financed by Russia’s Vnesheconombank
which will provide â~B¬22.5 million to=2 0Electric Networks of Armenia.
Paul-Henri Forestier expressed hope that the agreements will start
a tradition, and the EBRD will have more opportunities to support
the Armenian economy, which is most attentive to energy saving and
environmental protection issues.
Mkoyan pointed out that the signing of the agreement was preceded by
long-lasting teamwork of Ardshininvestbank and Elite Group experts. He
pointed out the high importance of the loan to the construction sector,
which is one of the risky industries.
"One of the advantages of our cooperation with the EBRD is
higher-quality company management, which is of the company’s
competitive advantages on the market," he said.
This January-May, a decline of 56.6% in the Armenian construction
industry caused a decrease of 10.3% in Armenia’s GDP against an
increase of 2.9% in the corresponding period last year.
Elite Group CJSC specializes in the construction, interior design
and service of elite residential and public complexes.