Germany will grant a loan to Armenia within the scope of the agreement on financial and technical cooperation between the two countries. This is what Deputy Minister of Finance of Armenia Armen Hayrapetyan declared during a discussion on ratification of the Agreement on Financial Cooperation between the Republic of Armenia and the Federal Republic of Germany in parliament today, adding that Germany will grant EUR 20,000,000. According to the deputy minister, the loan resources will be managed by the Armenian-German Fund (CIZ), which will refinance agriculture projects and the projects of small and medium-sized businesses, as well as mortgage crediting projects, partially through Germany’s commercial banks.

The loan will be granted to the Central Bank of Armenia, which will also assume debt management. The German government’s financial resources will be provided through KfW Bank. Hayrapetyan clarified that the loan won’t be a burden on the state debt and that it is also planned to engage different grants. In particular, EUR 750,000 will be allocated for implementation of a support program, and another EUR 750,000 will be allocated for building capacities for implementation of the loan program targeted at improvement of management of the waters of Akhuryan River.

The framework agreement needs to be ratified by the Parliament of Armenia before December 31, 2020, and the financial resources need to be provided before December 31, 2022.