Central Bank of Armenia and KfW sign 20 mln EUR loan agreement aimed at financing energy efficiency projects implemented by SMEs

ArmInfo. Central Bank of Armenia and German KfW Development Bank signed a 20 mln EUR loan agreement aimed at financing energy efficiency projects implemented by micro, small and medium enterprises. As the press-service of the Central Bank informed ArmInfo, the document was signed on March 18 in Frankfurt during the session of German-Armenian Fund (GAF).

According to the source the loan funds will be provided via banks and credit organizations, which will fully take credit risks of use of the funds. According to the CBA statement technical assistance will also be provided in the framework of cooperation, particularly the beneficiaries of the program will receive consultations.

To recall, KfW is one of the largest donors of Armenia. KfW investments totaled 500 mln EUR in 14 programs in 10 years, including in the field of small and medium business, agriculture, energy sector, ecology and financial-banking system.

To note, according to the National Statistical Service of Armenia, total amount of investments of Germany in the real sector of Armenia reached almost 62 mln USD for 9 months of 2015 with almost 2-fold y-o-y growth (the 2nd place by amount of investments). As of Jan 1, 2016 Armenia's debt to KfW totaled 189.9 mln USD or 4.4% of the total foreign debt of Armenia. The debt to the bank grew by 10.4% in 2015.