ArmInfo. The Eurasian Development Bank (EDB) has introduced a new instrument to reduce the interest rate on investment projects at the expense of the bank's technical assistance fund, Chairman of the Board of the EDB Nikolay Podguzov told RIA Novosti.
"The EDB has launched a new instrument to reduce the interest rate on investment projects. The rate is subsidized at the expense of the EDB's technical assistance fund," he said.
Podguzov noted that the technical assistance fund is mainly formed at the expense of deductions from the bank's net profit. "The fund's activities are currently carried out under three programs. These are" Technical assistance in the preparation of investment projects "," Technical assistance to expand the investment activities of the bank "and a new program, which, in fact, is the question -" Subsidizing the interest rate on investment projects, "he added. The criteria for granting subsidies for loans are approved by the EDB Council and largely coincide with the principles by which the bank selects projects for its own financing. The decrease in the rate level will be determined in each specific case by the bank's board based on the parameters of the project.
"In accordance with the principles of the EDB, profit is not the goal of our organization. The main thing is the development and integration of our countries - Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan. Therefore, it is logical that we use the money we earn through the technical assistance fund to improve accessibility. of our financing in the interests of creating a multiplier effect for investment activity. Thus, we increase our activity to promote the development of economies and improve the living standards of citizens of our states, "Podguzov concluded.
The Eurasian Development Bank is an international financial institution established in 2006 by Russia and Kazakhstan. Over the past two years, EDB has been working on creating its own settlement and clearing system and providing direct conversion services for national currencies. The members of the bank are Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan. In November 2019, Hungary and Moldova announced their intention to join the EDB.