ARMENIAN LAWMAKERS RATIFY CREDIT AGREEMENT WITH ASIAN DEVELOPMENT BANK

ARKA
September 16, 2009
Yerevan

YEREVAN, September 16. /ARKA/. On Wednesday, Armenian National
Assembly ratified a credit agreement signed with Asian Development
Bank on July 15.

Armenian Economy Minister Nerses Yeritsyan said that under this
agreement, the Asian Development bank lends SDR 51 million 378 thousand
as bailout credit.

"Negotiations over the matter was launched yet in late 2008, and
in June the parties reached an agreement. The key aim of the credit
agreement is to support Armenia in its efforts to mitigate impacts of
the global economic recession, particularly on social sector", he said.

The minister also said that the loan will be extended for 24 years,
of which eight year are grace period.

The loan will be transferred in two tranches – SDR 29.7 million and
21.6 million.

Yeritsyan said that repayment will begin in 2017 and continue until
2033.

He said that the money will be used for the social expenses planned
in the 2009 state budget.

"The credit is fully up to our anti-crisis policy", the minister said.

National Assembly Speaker Hovik Abrahamyan, in his turn, stressed
the importance of the credit agreement.

He said that the money will be spent for developing national economy,
not banking system.

"Armenia guarantees repayment and control over spending of these
funds and setting limits for banking20credits, which mustn’t exceed
nine percent. If so, credits will contribute to recovery of the real
sector of Armenia’s economy", Abrahamyan said. M.V.