Minister: Armenian Government to shortly approve agreement with EDB to receive a 300 mln USD loan

ArmInfo. The Armenian Government will shortly approve the agreement on provision of EDB $300 million loan to Armenia through the Eurasian Fund for Stabilisation and Development. Afterwards the document will be submitted for ratification of the National Assembly of Armenia, Armenian Vice Premier, Minister for International Economic Integration and Reforms, said when replying to ArmInfo's question.    

The loan will support the three-year reform programme aimed at ensuring economic stability in the country. Gabrielyan said the funds will be provided in tranches, and Armenia will receive the first tranche in 2016.

To recall, on November 5 the Armenian Government approved the draft agreement on provision of EDB $300 million privileged and long-term loan to Armenia through the Eurasian Fund for Stabilisation and Development. Armenian Minister of Finance Gagik Khachatryan pointed out that the loan will fund the expenditure item of the Armenian state budget. The redemption period will be 20 years, with 10 years being the grace period, and the interest rate is 2.1% per annum. The loan will be provided in three tranches ($100 million each) no later than 31 March 2018. The loan program aims to enhance the financial stability of the energy system and the efficiency of the public finance management, as well as to ensure relevant conditions for development of the business environment.

Eurasian Development Bank 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 Fund for Stabilisation and Development (EFSD) 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 EFSD are to assist its member countries in overcoming the consequences of the global financial crisis, ensure their economic and financial stability, and foster integration processes in the region. The member states of the EFSD appointed EDB as its manager.