Some 160.8 billion drams of $500 million Russian stabilization loan spent on financing recovery and development projects

07.04.2011 14:41
Some 160.8 billion drams of  $500 million Russian stabilization loan spent on financing recovery and development projects

YEREVAN, April 7. / ARKA /. Armenian ministry of finance said  today some 160.8 billion Drams of a $500 million stabilization loan that Armenia received in 2009 from Russia,  have been spent on improvement of business environment, lending to small and medium companies and implementation of large programs designed to better the operation of key infrastructures.

According to a statement by the ministry of finance,  the money was used to finance several business projects which are of key importance for Armenian economy and which gave a strong incentive to economic recovery, helping, particularly, the small and medium-sized businesses to overcome the fallout from the global crisis.

The statement says also part of the loan was used to set up a stabilization fund to provide finance to economy in case of strong need and protect it against negative external  shocks.

According to the statement, 85.5 billion Drams of the loan were lent to economy. Of that sum 66.5 billion were lent via banks and other financial institutions;  1.2 billion Drams  were invested in SME through universal crediting organizations, 17.8 billion Drams were channeled into companies ensuring the operation of key infrastructures.

Also 4.3 billion Drams were allocated as loans to SME through the national SME Development Center  and 15.6 billion Drams were loaned to Arm RosGazporm natural gas operator.

According to the statement, 52.9 billion Drams of the Russian loan were channeled into construction of housing in the earthquake zone, 1.3 billion Drams were loaned to Tamara Fruit company and 1.2 billion Drams were spent to finance a road rehabilitation program.

Armenian received the $500 million loan in June, 2009 as assistance to   cushion the effects of the global recession on the domestic economy. The loan was provided at LIBOR interest rate plus 3% and is  repayable in 15 years.  -0-


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