EBRD to first credit agreement with an Armenian bank under a new project on energy saving

According to Razlog, the funds will be provided to the banks for 7 years, the banks themselves will fix crediting conditions for the borrowers. At the same time, EBRD will provide commercial banks with technical support as well, taking into account the fact that this is new product for some banks. At the moment a tender is being held to choose the consultants who will be working with the banks and train the personnel. In addition, the consultants are to monitor the implementation of the projects themselves, he said.

EBRD is planning to lend the money to energy companies via local commercial banks. The money will be spent on modernization of equipment, purchase of turbines, implementation of projects to save heat and electricity.

Earlier Razlog told ArmInfo that, if the energy saving program in the manufacturing sector proved a success, it would be applied to individuals as well. He said that energy saving projects help to prevent CO2 emission and global warming. Armenia has big potential in this field as it has no own energy resources. In order to be highly competitive, Armenian companies should reduce consumption of expensive energy.

In 2009 EBRD lent Armenia 70% more than a year before. Since 1992 the bank has lent the country over 335mln EUR for 70 financial, energy, private business and infrastructure projects.