Germany to lend Armenia 3.5 mln euros for deposit guarantees
Interfax
May 27 2004
Yerevan. (Interfax) – Germany will lend Armenia 3.5 million euros to
bolster its credit guarantee fund, Karapet Gevorkian, a representative
of Germany’s KfW, which will disburse the money, told Interfax.
KfW will release the money after it has approved a feasibility study,
due to be completed at the end of June, Gevorkian said. In addition,
the bank is still waiting for Armenia’s parliament to pass a law on
guaranteeing personal bank deposits, he said.
Armenia started its deposit guarantee fund on July 1, 2003, but this
will not be in a position to start payments until July 1, 2005.
It is thought the guarantee fund will receive the credit, which will
be repayable in 40 years, at 0.75% annually. The credit will enable
banks to lower mandatory deductions to the fund from 0.5% to 0.2%
of the deposits they receive.
Germany has issued 110 million euros in credits and grants to Armenia
to date.
From: Emil Lazarian | Ararat NewsPress
Disclaimer: This article was contributed and translated into English by Emil Lazarian. While we strive for quality, the views and accuracy of the content remain the responsibility of the contributor. Please verify all facts independently before reposting or citing.
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