ArmInfo. The Eurasian Fund for Stabilization and Development (EFSD) will be transformed into a fully independent international organization with the possibility of financing projects and programs in the national currencies of the EFSD member states. At a meeting on November 25, the Committee of the National Assembly of the Republic of Armenia on Financial, Credit and Budgetary Issues issued a positive conclusion on the draft protocol on amendments to the regulation on the establishment of the Fund, submitted by the RA government for ratification.
As Deputy Minister of Finance of the Republic of Armenia Eduard Hakobyan noted in his speech, the agreement on the establishment of the EFSD was signed on June 9, 2009, when the heads of government of Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan signed the Agreement on the Establishment of the Anti-Crisis Fund of the Eurasian Economic Community in the amount of $8.513 billion, which was subsequently transformed into the EFSD. However, as Hakobyan noted, the fund was not an independent structure; its resources were managed by the Eurasian Development Bank (EDB). After some time, it became clear that both structures have their own characteristics, related to the fact that the EDB mainly finances investment projects in member states, and the EFSD - programs aimed at regional development.
The EFSD was created to overcome the negative consequences of the crisis, ensure long-term sustainability and promote the integration of the economies of the Fund's member states. The Fund provides financial loans to member states to support budgets and (or) balances of payments of member states, investment loans to member states or companies, grants to finance government programs in the social sphere. Current events have revealed an urgent need to transform the Fund into a fully independent international organization with the ability to finance projects and programs in the national currencies of member states. Taking into account the above, a draft of updated statutory documents was developed and submitted for discussion to the Fund Council, designed to ensure the implementation of the provisions of the EFSD strategy for 2022-2026 by granting the Fund the status of an international financial organization.
Currently, the total investment volume in the authorized capital of the fund is $8.513 billion, $1 million of which is in Armenia, $10 million in Belarus, $1 billion in Kazakhstan, $1 million in Tajikistan, $7.5 billion in Russia, and $1 million in Kyrgyzstan. As of now, the EFSD loan portfolio in Armenia is $840 million, $540 million of which are in the active implementation stage. The Deputy Minister specifically pointed out the $300 million loan previously allocated to support the state budget; another $100 million will be attracted for the same purposes this year. No less important are the funds in the amount of about $150 million allocated for the construction of the southern section of the North-South transport corridor. The Fund also agreed to provide Armenia with a $200 million loan for the construction of the Kajaran tunnel. This project will be implemented with the participation of other investors. Another $40 million has been allocated for the modernization of the republic's irrigation systems. Akopyan noted that discussions are underway with the fund to attract credit resources for the construction of a reservoir on the Mastara River. Armenia's application is currently under discussion.
