Worked Bank to give Armenia 4 loans worth $85 Mln

Interfax, Russia
Feb 25 2009

Worked Bank to give Armenia 4 loans worth $85 Mln

YEREVAN Feb 25

World Bank’s Board of Executive Directors has approved four loans
worth in total $85 million to Armenia, director of World Bank’s office
in Yerevan Aristomene Varoudakis told a news conference in Yerevan on
Wednesday.

The list of approved loans include a $50 million loan for the
development of small and mid-size businesses, a $25 million loan for
building 100 kilometers of rural roads, an $8 million loan for social
projects and a 2 million loan for agriculture enterprises, Varoudakis
said.

The $50 million loan for small and mid-size businesses will be
provided at the terms of the International Bank for Reconstruction and
Development (IBRD): maturity period is 26.5 years, grace period is
five years and the interest rate is around 4%.

Enterprises whose sales are beneath $1.5 million per year could get
these funds. The maximum loan under each business project is $150,000.

Small and mid-size enterprises will get loans at a market interest
rate.

The remaining three loans will be provided at the terms of the
International Development Association (IDA): the maturity period is 20
years, the grace period is ten years and the interest rate is 0.75%
per year.

The World Bank has given loans worth in total over $1.1 billion to
Armenia since 1992.