Armenia and Germany kick off another agro aid program budgeted over 15 mln euros

11.07.2012 11:52
Armenia and Germany kick off another agro aid program budgeted over 15 mln euros

YEREVAN, July 11. /ARKA/. Chairman of the Armenian Central Bank Artur Djavadyan and Vice President and Director of private and financial sectors’ development at  KfW bank Eva Witt discussed Tuesday the issues related to agriculture aid new program estimated to 15 million euros, the Central Bank said.

Djavadyan noted that the long-term cooperation between Armenia and Germany in financial sector is advancing to the new development level, which is proved by the launch of the new aid  program for agriculture.
On June 11 of 2012 the Central Bank of Armenia and KfW bank signed a 15-million-euro credit agreement and a 250-thousand-euro grant contract. “Agriculture aid” program will be financed by Federal Ministry for Economic Cooperation and Development of Germany (BMZ) and Armenia’s government.

In the framework of this program Armenian government will allocate additional $5.5 million to the Central Bank out of its grants received within the earlier “Credit Guarantee Fund” program.
According to the source, the credit program will enable the banks to distribute more funds to farmers thus supporting the agricultural sector.
The program adviser is Frankfurt School of Finance and Management German company.
KfW bank gives credit to the Central Bank under preferential conditions.
The following participant banks were chosen: Araratbank, ACBA-Credit-Agricole, Ardshininvestbank, Inecobank, Procredit Bank.

At the meeting the sides also discussed the issues related to renewable energy lending.
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. -0-


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