The Eurasian Stabilization Fund's board has approved the extension of a $300-million loan to Armenia, Russian Finance Minister Anton Siluanov told journalists on Tuesday, December 8, according to ARKA.
On November 4, 2015, the Armenian government and the Eurasian Development Bank signed a $300-million loan agreement.
The financial resources are intended for neutralization of possible short-term and mid-term risks in implementing foreign exchange policy and ensuring fast economic growth.
The 20-year loan has a 10-year grace period at an annual interest rate of 2%.
“The first tranche will amount to $100 million,” the Minster said in Yerevan.
Siluanov noted that the board also discussed a number of investment projects for irrigation systems and construction of a water reservoir with a $40 million credit line.
Also, it was decided to continue investment financing of infrastructural projects not only in Armenia, but also in Belarus and Tajikistan.
Armenian Finance Minister Gagik Khachatryan, in turn, said the financial resources will serve the intended purpose. He also stressed the importance of the ESF-approved project of construction of a water reservoir in Mastara to boost development of the country’s agriculture.
The Eurasian Stabilization Fund will lend another $40 million to Armenia for modernization of irrigation infrastructure. The total budget of this five-year project amounts to $50 million, of which $10 million will be provided by the Armenian government.
The loan will be provided for 20 years with a 10-year grace period at an annual interest rate of 2% a. The project will launch in 2016.
The Eurasian Stabilization Fund (earlier Eurasian Anti-Crisis Fund) was established by Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan in 2009.
The fund is run by the Eurasian Development Bank, which was established by Russia and Kazakhstan in January 2006 for supporting its member countries’ market economies, contributing to their sustainable growth and making economic and trade ties among these countries.
