AGREEMENT ON ARMENIAN-GERMAN FINANCIAL COOPERATION SIGNED
Noyan Tapan
March 16, 2010
YEREVAN, MARCH 16, NOYAN TAPAN. The Armenian Minister of Finance
Tigran Davtian and the German Ambassador to Armenia Hans Jochen
Schmidt on March 16 signed the Agreement on Financial Cooperation
between the Governments of Armenia and Germany in 2009-2010. Under
the agreement, Armenia will receive 105.5 million euros in the coming
years. The press service of the RA Ministry of Finance reports that
these financial resources will be allocated for the implementation
of the following programs:
Community Infrastructure Rehabilitation Component (Rehabilitation of
Water and Wastewater Systems in Shirak and Lori marzes) – up to 40
million euro loans,
Vorotan Hydropower Plants Cascade Rehabilitation Component – up to
22 million euro loans,
Sustainably Developing Apartment Financing Market Component – up to
20 million euro loans,
Renewable Power Bearing Substances Crediting Component – up to 18
million euro loans and up to 1.5 million grants on technical assistance
measures under this program,
Environmental Protection Program: Preserve Assistance Component –
up to 4 million euro grants.
A separate agreement will be signed for each of the indicated programs,
prior to which negotiations will be conducted to specify the amounts
of loans and grants, the terms, etc.
Armenian-German bilateral cooperation started in 1993. Initially
technical assistance was provided, and since 1995 financial cooperation
projects have also been implemented. "Caucasian Initiative" regional
programs were added in 2001, thanks to the intergovernmental
negotiations.
The Armenian-German financial and economic cooperation focuses on
three major spheres: encouragement of the financial and private
sectors, development of the energy sector, and development of water
and wastewater systems. Relatively small-scale environmental and
healthcare programs are implemented as well. The programs have been
financed by KfW Bank with resources provided by the German Federal
Ministry for Economic Cooperation and Development (BMZ), in recent
years – also with its own financial resources.
Agreements of a total of 160.3 million euros have been signed so
far within the framework of Armenian-German financial cooperation,
including credit programs of 118 million euros and grants of 42.3
million euros.