KfW to provide Armenia 64 Mln euros in loans

Russia & CIS Business and Financial Newswire
November 30, 2007 Friday 11:36 AM MSK

KfW to provide Armenia 64 Mln euros in loans

YEREVAN Nov 30

Germany’s KfW will provide Armenia three loans for a total of 64
million euros for energy programs, KfW representative in Armenia
Karapet Gevorkian told Interfax.

The agreement was reached during intergovernmental talks, he said.

The sides are working on a framework agreement to be signed in
January, he said.

The financing will be provided in the second half of 2008 after all
official procedures are completed, he said. The temrs of lending are
being confirmed, but some of the loans will be provided at low rates
and some at commercial rates, Gevorkian said.

Germany has provided Armenia 150 million euros in loans and grants
since 1995. That included 30 million euros in grants and the rest in
low-interest loans for 40 years with a 10 year grace period at 0.75%
annually.