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.