YEREVAN, October 20, /ARKA/. The $500 million Russian stabilization loan was instrumental in offsetting the negative impact of global economic crisis on Armenian economy, prime minister Tigran Sarkisian said during a meeting with a group of Russian journalists in Yerevan.

The agreement on the release of a $500 million Russian loan aimed at helping the Armenian government mitigate the effects of the global recession on the domestic economy had been signed in 2009 May. The loan is repayable in 15 years and carry an interest rate of about 4 percent.

According to Tigran Sarkisian, part of the loan was directed at construction of homes at Armenia’s disaster zone hit by an earthquake in 1988. Another part was allocated to export-oriented companies, small and medium businesses and tourism industry. The remaining portion has been placed in the stabilization fund and will be used to finance government-designed projects, the prime minister said.

According to Tigran Sarkisian, Armenia plans to attract fresh loans from World Bank and the Asian Development Bank for implementation of large-scale projects, like construction of North South transport corridor. He said Armenia’s foreign debt’s ratio to GDP is below 40% while the budget gap is reducing and expected to drop next year to 4%. According to government data, on June 30, 2010 Armenia’s foreign debt stood at $3.027.4 growing by 2% or $61 million from 2009 December. -0-