Eurasian Stabilisation and Development Fund decides to provide Armenia with a 40 million USD investment loan

The Eurasian Stabilisation and Development Fund (ESDF) (former EurAsEC Anti-Crisis Fund) has taken a decision to provide Armenia with a 40 million USD investment loan. 

The press office of the Eurasian Development Bank (EDB) has told ArmInfo that the ESDF investment funds will be spent on the Modernisation of Irrigation Systems project. The total cost of the project will be $50 million ($40 million to be provided by the ESDF, with $10 million being Armenia's co-financing). This five-year project is a part of the long-term national programme on rehabilitation and reconstruction of the irrigation and drainage network in Armenia. The project is aimed at building and restoring eight gravity systems (70.4 km), 8.1 km of main canals, 54.1 km of inter-farm canals, and 277.8 km of on-farm canals throughout Armenia. 

The project is expected to significantly expand the irrigated lands and to ensure net savings of electric power, operational and maintenance costs. In addition, it will create temporary jobs during the construction phase and additional permanent jobs as a result of the increased effectiveness and stability of irrigation water supply and the expansion of irrigated lands.

The Eurasian Development Bank (EDB) is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth, and the expansion of mutual trade and other economic ties in its member states. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan. The Eurasian Stabilisation and Development Fund (ESDF) amounting to US$8.513 billion was formed as the EurAsEC Anti-Crisis Fund on 9 June 2009 by the governments of six countries: Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan. The objectives of the ESDF are to assist its member countries in overcoming the consequences of the global financial crisis, ensure their economic and financial stability, and foster integration in the region. The Fund's member countries signed the Fund Management Agreement with Eurasian Development Bank giving it the role of the Fund's Resources Manager.

To recall, the Council of the Fund has recently taken "a political decision" to provide Armenia with a USD300 million stabilization loan. Despite the lack of official information, these funds will be spent on partial coverage of the budget deficit and on strengthening of the macroeconomic stability.