Germany to lend Armenia 3.5 mln euros for deposit guarantees

Germany to lend Armenia 3.5 mln euros for deposit guarantees

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

Emil Lazarian

“I should like to see any power of the world destroy this race, this small tribe of unimportant people, whose wars have all been fought and lost, whose structures have crumbled, literature is unread, music is unheard, and prayers are no more answered. Go ahead, destroy Armenia . See if you can do it. Send them into the desert without bread or water. Burn their homes and churches. Then see if they will not laugh, sing and pray again. For when two of them meet anywhere in the world, see if they will not create a New Armenia.” - WS