YEREVAN. – The government allocated a €15 million budget guarantee to the Central Bank of Armenia (CBA). 

With the government’s decision on Thursday, the guarantee is provided within the framework of the arrangement that was reached with the KfW Development Bank of Germany.

To note, KfW Frankfurt and the CBA had signed an agreement, on June 11, 2012, pursuant to which €15 million will be provided to the CBA along the lines of the Assistance to the Agricultural Sector of Armenia program.

The Armenian Finance Ministry’s allocation of the guarantee, which is considered as a means to secure the loan to be provided to the Central Bank of Armenia, is a prerequisite for the said agreement to enter into force and for ensuring the attainability of the loan.