WORLD BANK PROVIDES ARMENIA WITH THE FIRST TRANCHE WORTH $25 MLN WITHIN THE FRAMES OF SUPPORT LOAN

ArmInfo
2009-07-01 19:55:00

ArmInfo. The World Bank (WB) has provided Armenia with the first
tranche worth $25 mln within the frames of $545 mln support
loan, Chairman of the Central Bank of Armenia Artur Javadyan
told journalists, Wednesday. To note, $50 mln are envisaged for
implementation of small and medium business financing program. The
members of the given program are 8 Armenian banks which signed an
agreement with the CBA in early June. The banks will provide financing
to the borrowers in Armenian drams.

As regards the stabilization loan worth 500 mln USD received from
Russia, Javadyan said that 60.5 bln AMD of this amount are directed
to the Armenian banking system, 18.5 bln AMD of them – to small and
medium business financing, 12 bln AMD – to the newly-created National
Mortgage Company, which will start refinancing mortgage loans since
next week, and 30 bln AMD – to exporters, tourism companies, processing
companies, as well as consumer crediting.

Javadyan said the loans provided to the Armenian banking system will
contribute to reducing the interest rates for loans making them more
accessible to potential borrowers. A.Javadyan hopes the interest
for loans will be reduced to the level of early 2008 till the end of
the year.

Data of the Armenian Central Bank provided to ArmInfo by the National
Statistical Service of Armenia say the interest rates for loans in
terms of the national dram (AMD) totaled 19.49% in early 2009 and
were down to 18.61% in late May. Over 2008 the interests for AMD
loans were up from 16.45% to 16.50%, the highest interest rates was
registered in May – 17.39%.