Tuesday, June 2 2020 14:13

ArmInfo.The European Bank for Reconstruction and Development (EBRD) and the Asian Development Bank (ADB) will provide Electric Networks of Armenia CJSC with $ 25 million and $ 20 million credit resources respectively, the press  service of the electric networks reports.

According to the source, the funds will be used to replenish working  capital. The goal of attracting financial resources is to increase  the company's liquidity level, ensure continuity in its activities in  the provision of vital services, and support key infrastructure for  independent work. Loans will help maintain the quality of reliable  and uninterrupted services in the context of combating the economic  consequences of the COVID- 19 epidemic. "At present, we are  confronting the biggest challenge of our time. The epidemic is much  bigger than the health crisis, it also poses all of us with serious  social and economic problems," said Karen Harutyunyan, Director  General of Electric Networks of Armenia CJSC, expressing deep  appreciation to the EBRD and ADB for assistance provided during this  difficult period.

According to Dimitri Gvindadze, head of the European Bank for  Reconstruction and Development (EBRD) Resident Office in Armenia, the  epidemic is affecting both the economy and society. "The work of ESA  is very important for the energy sector and the economy of Armenia.  We are pleased to support ENA, our key partner in Armenia,"  Gvindadze,  said.

"ADB has close relations with the ENA, and we are pleased to provide  this support. We believe that this will set a precedent for further  measures by the private sector to reduce the economic impact of the  crisis," ADB South Asia, Central Asia, and West Asia Private Sector  Operations Department Infrastructure Finance director Shantanu  Chakraborty said.

ENA CJSC is a member of the Tashir Group of Companies. Tashir Group  of Companies is one of the largest diversified industrial and  construction companies operating in several sectors of the Russian  economy. In 2017, ADB and EBRD provided ENA loans in the amount of $  160 million ($ 80 million each), which are aimed at improving the  quality of electricity distribution and increasing the independence  and efficiency of the electricity system.

Improving the efficiency of energy supply is one of the main areas of  activity of the EBRD. The EBRD is a leading institutional investor in  Armenia and is active in all sectors of the economy. Starting its  activities in Armenia in 1992, the EBRD invested 1.36 billion euros  in 178 projects submitted to the financial, corporate, infrastructure  and energy sectors, with 90% of investments made in the private  sector.

ADB is committed to creating a prosperous, inclusive, sustainable and  stable Asia and the Pacific, while continuing its efforts to  eradicate extreme poverty. Founded in 1966, ADB includes 68 member  countries, 49 of which are the states of the region.