KFW TO PROVIDE 18 MILLION EUROS IN LOANS AND 1.5 MILLION EUROS IN GRANTS TO CBA

NOYAN TAPAN
MAY 3,2010
YEREVAN

The German government will provide 18 million euros in loans and 1.5
million euros in grants to the Central Bank of Armenia (CBA) under
the Renewable Energy Assistance credit program of the German-Armenian
Fund. The agreements on this were signed on May 3 by First Vice
President of KfW Bank Roland Siller and Chairman of the Central Bank
of Armenia Arthur Javadian.

According to A. Javadian, as long ago as 2004 KfW Bank gave 6
million euros in loans and 1.5 million euros in grants under the
same program, and this sum was completely spent on the refinancing of
14 small hydropower plants, 8 of which were hydropower plants under
construction and 6 were operating plants.

A. Javadian said that the agreements signed are the second stage of
the program. "I think it is needless to speak about the importance
of this program. So far the Armenian banking system has given loans
of 24.5 billion drams to the energy sector. The peculiarity of these
loans is that in our history, they are the first loans to be given on
noncommercial terms. We restrict the interest rates as their amount
affects the electricity tariffs," A. Javadian stressed.

The loans will be provided at interest rates of 10.5-11% through 6
partner banks of the CBA. KfW has provided the indicated loan to the
CBA for a period of 12 years, including a 3-year grace period.

From: Emil Lazarian | Ararat NewsPress