ArmInfo.The implementation of the loan program "Community Infrastructures II Stage 3" in Armenia, funded by the German KfW Bank, will be extended until December 30, 2021. At a meeting on March 14, the Government of Armenia approved the proposal to sign a letter on amendments to the loan agreement signed on December 27, 2013.
According to the certificate of the Ministry of Finance of the Republic of Armenia, published on the website of the Government of the Republic of Armenia, the previous implementation of the loan program of 30 million euros and a grant of 2.5 million euros was reassigned to the office for the implementation of the Water Management Program, resulting in problems related to the ongoing so far the design research process, which is in the final stage. The funds will be allocated for the modernization of community infrastructures, in particular, for the rehabilitation of irrigation systems. At the same time, the European Investment Bank has not yet signed a financial agreement with another funding source for the program. According to preliminary data, as a result of the project implementation, 12 million euros will be saved, for the use of which additional design research work will be required, as well as construction itself, which is scheduled for completion in December 2021. To note, according to ArmInfo analysts, the grace period of the 15-year credit agreement expires this year. And, according to the commitments, the republic should start servicing the loan amount of 23.4 million euros or 162.8 euros per day from the current year. In this context, the issue of changing dates becomes relevant. To recall, the banking portfolio of KfW Bank in Armenia is 787 million euros, in which the dominant role is played by the energy sector - about 50%, administrative infrastructures - 26%, financial sphere - 22%, natural resources management and other areas - by one percent. The Bank's activities are aimed at ensuring economic and social progress in developing countries and countries with economies in transition in order to improve the standard of living of society. The German Development Bank has been operating in Armenia since 1998; over the past 15 years, many financial programs have been implemented in the field of lending to micro, small and medium enterprises, energy, infrastructures and municipal government.