Wednesday, February 8 2017 14:06

ArmInfo. The National  Assembly of Armenia at its February 8 session ratified the Letter  Agreement  " On modifications to Loan Agreements", signed between  Republic of Armenia and Asian Development Bank. 

According to Armen hayrapetyan, Armenian Finance Deputy Minister, the  Document was signed on October 17, 2016 and on November 11 of the  same year. he ADB Directors Board took ision on cancellation of soft  lending in respect to Armenia, This decision is preconditioned by the  fact  that per capita in Armenia for the period of 2010 - 2014 formed  USD 3270, meanwhile the Bank sets the indicator of USD 1215. hence,  from January 1, 2017  ADB loans will be proposed for Armenia within   common banking conditions, which assumes the  double increase of  interest rates  up to 3,7% and 3,1%. But in the case when the loan  disbursement schedule is kept and those maintenance is fair, the Bank  has a right to observe  some parts of those as grants. This will lead  to  the decrease of interest rate to the level of 2,8%.  Armenian  Government  made the choice exactly in respect to this option. 

 To note, under ADB's country partnership strategy, 2014-2018,  Armenia will receive about $500 million financial assistance to  develop infrastructures, energy and social services that will ensure  flexible, comprehensive and sustainable development of the country.   In the transport sector, ADB will continue to support improving the  north-south road corridor, and promoting transport links between and  within secondary towns, especially those with the highest poverty  rates.  To promote regional cooperation and integration, ADB will  coordinate with Georgia to help improve roads linking Armenia and  Georgia.  ADB will support urban development in towns with the  highest poverty rates by helping local governments prepare integrated  urban development plans, and financing modernization of  infrastructures, including in water supply, urban roads, and solid  waste management.  Armenia's aging electricity infrastructure and  heavy dependence on imported fuels affect its energy security. ADB  will help addressing this issue by supporting the development of  renewable energy resources and helping to rehabilitate and upgrade  energy infrastructure.

Armenia joined ADB in 2005. ADB, based in Manila, is dedicated to  reducing poverty in Asia and the Pacific through inclusive economic  growth, environmentally sustainable growth, and regional  integration.