Monday, June 7 2010 20:49

ArmInfo. The draft German-Armenian agreement for allocation of 105.5mln EUR has been submitted for the Armenian
Parliament's consideration, Deputy Finance Minister of Armenia Vardan Aramyan said in the Parliament today.

The total cost of the program is 105.5mln EUR. 5.5mln EUR will be received in the form of a grant, of which 4mln EUR will be granted for a study of the bio-sphere of Shikahogh preserve as well as mapping and zoning activities, 1.5mln EUR - for advising of renewable energy market participants, particularly, managers of small WPPs.

20mln EUR will be lent for refinancing of mortgage loans and prolonging their periods. This project will cover mortgage credits with periods of no less than 10 years.

22mln EUR will be allocated for re-equipment of Vorotan WPP Cascade, 18mln EUR - for crediting of small WPPs.

Aramyan said that the Central Bank will provide the loans to commercial banks at 5.5%. For small WPPs the interest rate should not exceed 10.5%.

40mln EUR will be provided for upgrading of the water supply infrastructures of Shirak and Lori regions.

"With our BB sovereign rating we would not be able to borrow funds for 7 years at an interest lower than 10%. German KfW can get this money upon more favorable terms and we have been enabled to use this chance," Aramayn said.

This is a framework agreement and each project will have its won terms. The interest rate will include Euribor plus variable margin.