China will extend a preferential loan of 155.5 million yuans to Armenia (about $25.3 million) for modernization of customs control systems.

On Thursday, March 19 at its regular session, the Armenian government approved the signing of a relevant agreement. Pavel Safaryan, Armenian deputy finance minister, will acquire necessary equipment from China, ARKA reports.

“An equipment supply contract will be signed with China's Nuctech Company,” he said. “It will imply portable x-ray scanner for detecting explosives, weapons, drugs and other things with high smuggling risk.”

According to the draft agreement the loan will be extended by the Export-Import Bank of China. The loan will be repaid in the Chinese yuan.

The loan is extended for 20 years with a five-year grace period at 2% interest rate with 0.25% service fee.