ArmInfo.The financial agreement between the RA and the German Development Bank KfW provides for the provision of loans in the amount of more than 110 million euros. On September 6, the Armenian government approved by a "written vote" the proposal to sign an agreement "On financial cooperation for 2020 between the government of the Republic of Armenia and the government of the Federal Republic of Germany."
As stated in the rationale for the document, the Agreement provides an appropriate legal framework that is the basis for individual financing or cooperation agreements between the parties.
The agreement provides for financial assistance in the amount of up to 3,000,000 (three million) euros for the implementation of the "Biodiversity and Sustainable Local Development - Armenia" program, as well as financial assistance for the implementation of projects specified in paragraphs 1 and 2, paragraph 2 of the Agreement.
In addition, the Government of the Federal Republic of Germany provides the Government of the Republic of Armenia or another borrower, the latter will be jointly choused by the two governments, a loan of 40,000,000 (forty million) euros within the framework of the state development policy for the implementation of the project "Development of renewable energy (II stage) in within the program of the German Climate Technology Initiative (DKTI) and 70,000,000 (seventy million) euros for the project "Stimulating the development of small and medium-sized enterprises II".
"This is a framework agreement, according to which separate agreements on financing or loans will be signed in accordance with the aforementioned programs. Based on the above-mentioned provisions, the Ministry of Economy of the Republic of Armenia considers it expedient to sign the" Agreement on financial cooperation for 2020 between the Government of the Federal Republic of Germany and the Government of the Republic of Armenia, " the document reads.
To note, KfW is one of the largest donors in Armenia. Over the past 20 years, KfW's investments have exceeded EUR 500 million in more than 15 programs, including in the sector of SMEs, agricultural sector, energy complex, ecology, and in the financial and banking sector.
