Tuesday, September 7 2021 11:37

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.