German KfW bank may provide Armenia with 205 million euro loans in
next few years to finance a variety of projects

YEREVAN, March 19. / ARKA /. The government of Armenian has okayed
today the signing of a draft package deal with the German
government-owned KfW bank under which the latter will provide Armenia
with 205 million worth loans in the next few years for the
implementation of various projects.

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

The loan agreement for this project in the amount of 85.2 million
euros was signed with KfW in 2014 December. The KfW loan will be
provided in two tranches -75 million and 10.2 million euros. 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 50 million
euro loan for management of water resources of the border Akhurian
River, a 15 million euro loan for energy-efficient renovation of
schools, up to a 20 million euro to enhance efficient use of energy by
small and medium-sized businesses and another 20 million euro loan for
boosting local real estate market.-0-