German government will allocate €18m credit to CBA and €1.5m extra funds in the frames of “Promotion for Renewable Energy” program. CBA Chairman Arthur Javadyan and first vice-president of KfW Roland Siller signed relevant agreements in Yerevan today. In the frames of the program, Armenia got 14 credits of AMD 2.9 bn, having 8 of them allotted to HPPs that are being constructed and 6 already operating.

The loan was granted to CBA at subsidized interest rate with 12 years’ repayment period (3 years – preferential). Funds will be allotted for free technical and financial consultations funded in the frames of program intended for HPPs and partner banks. Javadyan noted that CB and KfW signed a loan agreement for €6m and €1.5m grant funds in November, 2004. To date, the funds are fully realized.

“Banks obtained credits at the rate of 5.5%, while small HPPs at 10.5%. This time, interest rate will make 10.5-11%,” Javadyan said, adding that presently Armenian government allocated AMD 24.5 bn for assistance of small and medium HPPs.

In his turn Roland Siller emphasized that in 2010 German government intends to finance unprecedented number of infrastructural projects in Armenia.

“KfW plans to sign agreements totaling €120m with Armenian government. There is an agreement on granting €20m for the development of mortgage market and €18m – for assistance of small and medium HPPs in Armenia,” he stated.

Another credit agreement of €30m will be signed on May 4 in the frames of the second stage of the water supply program in Gyumri and Vanadzor cities. German government will also grant €51m for restoration of Vorotan cascade through KfW bank.

A.G.