ARMENIA PAYS RUSSIAN LOAN OFF AHEAD OF TIME
Vestnik Kavkaza, Russia
Oct 3 2013
3 October 2013 – 2:41pm Armenian Finance Minister David Sarkisyan
told the government that Armenia has started paying off the Russian
loan ahead of time, RIA Novosti reports.
Russia granted Armenia a 15-year loan worth $500 million in 2009. It
was granted at the LIBOR + 3% rate and an annual rate of 4% with a
4-year beneficiary period.
Armenia received a tranche on June 12, 2009. About $492 million will
be spent to boost the economy.
Armenia will pay the debt off through eurobonds released on September
19. The emissions released total $700 million with a repayment period
of 7 years, income 6%. Deutsche Bank AG, London Branch, HSBC Bank plc
and J.P.Morgan Securities plc. are the main undewriters. The demand
for dollar bonds exceeded $3 billion in Armenia.
Prime Minister Tigran Sargsyan said on September 27 that the remaining
$460 million will be paid to Russia.
Armenia plans to spend $44 million annually to cover the governmental
debt.
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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