ArmInfo. Federal Republic of Germany will provide Armenia a loan of 20 million euros under the agreement on financial and technical cooperation. The parliamentary committee on financial-credit and budgetary issues at a meeting on June 15 made a positive conclusion on the draft agreement submitted by the government. The document will be considered at the plenary session of the National Assembly of the Republic of Armenia.
According to the Deputy Minister of Finance of Armenia Armen Hayrapetyan, the Armenian-German Fund (CIZ) will manage credit resources, which through commercial banks of the country will refinance projects in the field of agriculture, small and medium business, and partially mortgage lending. The recipient of the loan will be the Central Bank, which will take over the management of this debt. The funds of the German government will be provided through the KfW bank. Thus, the loan will not have any burden on government debt.
In addition to credit resources, it is also envisaged to attract various grants. In particular, 750 thousand euros will be directed to the assistance program, the same amount to strengthen opportunities in implementing a credit program to improve the management of the waters of the Akhuryan River. Other grant programs are also provided.
Moreover, as the Deputy Minister noted, the framework agreement should be ratified by the National Assembly of the Republic of Armenia no later than December 31, 2020, and the availability of financial resources should be provided until December 31, 2022. Armen Hayrapetyan also emphasized that the program itself consists of three components - technical assistance, credit and financing of CIZ projects.
