KFW PROVIDES EUR 20M TO ARMENIA FOR HOUSING MARKET DEVELOPMENT

news.am
April 19 2010
Armenia

The German KfW bank has provided a total â~B¬20m to the Central Bank
of Armenia (CBA) under the Sustainable Housing Finance Market program.

The 10-year credit has been issued with a 3-year grace period. The
German Government will subsidize part of the interest rates.

The Armenian banks will receive the funds at an annual interest rate of
8.25%, but the rates can be revised in line with market developments.

The program was launched in 2005, after the Armenian and German
Government reached an agreement. Under the program Armenia received
two â~B¬6m tranches, in 2006 and in 2007, as well as a â~B¬1.5m grant
for consulting.

The KfW bank has been assisting Armenia in implementing financial
cooperation programs since 1995. It opened its branch office in
Armenia in October 1998.

The bank’s focused its activities on the energy sector, water supply
and drainage, as well as on the financial and banking system and
private sector.

In 2009-2010, the bank is to provide a total of â~B¬110m under the
Armenian-German financial cooperation programs.