YEREVAN, October 7, /ARKA/. The Armenian government has provided today an 18 million euro guarantee to the Central Bank as part of a program designed to support renewable energy projects funded by German KfW bank.

A deputy finance minister Pavel Safarian said the guarantee is envisaged by an agreement signed earlier this year (March 3) by the Central Bank and KfW. Under the agreement KfW will provide an 18 million euro loan to the Central Bank and a 1.5 million euro grant for the second phase of the renewable energy support program.

Fourteen loans worth a total of 2.9 billion Drams were made available during the first phase, when KfW allotted a 6 million loan and a 1.5 million grant. Eight loans were extended to newly built hydropower plants and six loans to operating facilities.

Central Bank’s partners in this program are six local banks- Armeconombank, ACBA Credit Agricole Bank, Anelik Bank, Conversebank, Armswissbank and Ardshininvestbank.

German KfW bank has been assisting Armenia to implement different projects since 1995. The main sectors of its activity in Armenia are energy, drinking and waste water systems as well as private sector and financial and banking system. Since 1995 KfW has committed 400 million euros worth assistance to Armenia. Within the frameworks of Armenian-German financial cooperation KfW will have provided Armenia with 110 million euro assistance in 2009 and 2010. -0-