YEREVAN. – The project of €30-million loan by KfW was submitted to for the ratification of the Armenian parliament during special session on Saturday.

The loan agreement for improving water supply system in Armenia was signed by acting Finance Minister David Sargsyan and German Ambassador Reiner Morell in April.

The agreement envisages granting €30-million loan for 15 years with a grace period of 5 years, under 1.7% per annum. There is also a grant of €2.5 million.

“The total budget of the program aiming to improve water supply should reach €73.5 million. We are currently negotiating with the European Investment Fund on a preferential loan of €25.5 million, and with the EU Neighbourhood Investment Facility for another €15 million This will ensure 24-hour water supply for another 506 villages,” Deputy Finance Minister Vakhtang Mirumyan said while presenting the program.   

КfW development bank is one of the largest donors in Armenia. Overall support from KfW to Armenia over the last 20 years is reaching around €500 million.