KFW BANK TO EXTEND EURO 205 MILLION LOAN FOR ARMENIAN PROJECTS

March 20, 2015 – 12:24 AMT

PanARMENIAN.Net – The government of Armenian okayed on March 19 the
signing of a draft package deal with the German government-owned
KfW bank under which the latter will provide Armenia with EURO 205
million worth loans in the next few years for the implementation of
various projects.

According to the draft agreement, Armenia will get EURO 100 million
to build a transmission line from Armenia to Georgia as part of the
Caucasus Power Line project, ARKA reports.

The loan agreement for this project in the amount of EURO 85.2 million
was signed with KfW in 2014 December. The KfW loan will be provided
in two tranches – EURO 75 million and 10.2 million. The first is
repayable in 15 years with a five-year grace period and the second
is provided for a period of 40 years at 0.75% interest rate. This
project is expected to enable Armenia and Georgia to integrate their
power grids and contribute to their economic development.

Under the draft package Armenia may also obtain from KfW a EURO 50
million loan for management of water resources of the border Akhurian
River, a EURO 15 million loan for energy-efficient renovation of
schools, up to a EURO 20 million to enhance efficient use of energy
by small and medium-sized businesses and another EURO 20 million loan
for boosting local real estate market.