KfW to distribute 15 mln euros to finance agricultural sector in Armenia

06.04.2012 14:04
KfW to distribute 15 mln euros to finance agricultural sector in Armenia

YEREVAN, April 6. /ARKA/. KfW German bank will allocate 15 million-euro loan to Armenia within the program on financing small and medium-sized farms in the country, Director of German-Armenian Fund (GAF) Gevorg Tumanyan said in the interview with ARKA News Agency.
“Currently we are conducting works on implementing a new program in cooperation with KfW, which is planned to start in 2012. The program will be directed to financing small and medium-sized agricultural enterprises of the country,” he said.
Tumanyan clarified that besides these 15 million euros given by KfW, Armenia’s government will contribute another $5 million as a grant received from the German government
He added that the  loan will be granted for purchasing  agricultural machinery, lands consolidation, building  greenhouses, etc.
He also said that five partner banks will be chosen for proceeding lending to borrowers in the framework of the program’s tender. “The tender is being proceeded now,  and we will know which partner banks are chosen pretty soon,” he noted.
KfW German bank has been financing programs in Armenia since 1995; its representation has been operating in the republic since October 1998.  KfW mainly concentrates on energy, drinking water and drainage sector, as well as financial and banking and private sector development.
KfW injected over 400 million euros into programs in Armenia in the framework of Armenian-German financial cooperation since 1995.
The GAF Office was established in Armenia in September 2001. Currently GAF is implementing six credit programs, three of them are financed by KfW German bank, one-by the World Bank, Armenia’s government funds the other two ones. Within these programs commercial banks of Armenia allocated to small and medium-sized businesses nearly  180.2 billion drams in total of 62,200 loans. ($1-391.17 drams).  —0--

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