Germany to provide loan for Armenia`s renewable energy sector 

ArmInfo.Preferential loan worth of 12 million Euros will be allocated to Armenia by the  Agreement. The money will be allocated to the private sector for making investments in some spheres of renewable energy.

Loan can be allocated to the legal persons for building solar stations or to the  physical persons for building small autonomous stations. The RA  Acting Deputy Minister of Economy Rafayel Gevorgyan said, presenting  the draft law on Ratifying the Agreement on Financial Cooperation of  2022 between the Government of the Republic of Armenia and the  government of the Federal Republic of Germany at March 19 NA sitting.

The key rapporteur informed that the loan repayment term is designed  until 2030. It will be allocated from the budget of the Federal  Republic of Germany.

In response to the question of the deputy of the NA Civil Contract  Faction Sergey Bagratyan, how the money is distributed, the key  rapporteur informed that a rather established mechanism functions:  that is the Armenian-German Fund, which operates under the RA Central  Bank, The Fund carries out the distribution through commercial banks.

The member of the NA Standing Committee on Financial-Credit and  Budgetary Affairs Narek Grigoryan presented the positive viewpoint.  He noted that the RA Government is concerned about getting energy for  every entity in a more accessible way.

The loan was provided on preferential terms - for a period of 20  years, a grace period for payments in the first 7 years and an annual  interest rate of 0.9%.

According to the energy development strategy of Armenia until 2040,  by this date it is planned to create 2 thousand MW of additional  capacity in the republic using renewable energy.